The number of Americans filing applications for unemployment benefits dropped to a 49-1/2-year low last week, pointing to sustained labor market strength that could temper expectations of a sharp slowdown in economic growth.

U.S. employment growth accelerated from a 17-month low in March as milder weather boosted hiring in sectors like construction, which could further allay fears of an abrupt slowdown in economic activity in the first quarter.

U.S. stocks rallied on Monday, starting off the second quarter on a strong note, as upbeat manufacturing numbers from China and the United States eased worries about slowing global growth.

Sales of new U.S. single-family homes increased to an 11-month high in February and sales for January were revised higher, suggesting that lower mortgage rates were starting to lift the struggling housing market.

Things might look a little gloomy in the world’s biggest economy, with slowing earnings growth and recession fears in the bond market, but stocks are still holding up just fine.

Some investors may be freaked out over the recession signal being sent by bond market rates, but if history is a guide, there is still time to capture more gains in the stock market.

U.S. President Donald Trump said trade negotiations with China were progressing and a final agreement “will probably happen,” adding that his call for tariffs to remain on Chinese imported goods for some time did not mean talks were in trouble.

European Union leaders called for an end to naivety on Friday in relations with Beijing and said China was a competitor whose markets were not sufficiently open, although they did not spell out specifically what they planned to do.

Sales of existing homes skyrocketed a whopping 11.8 percent in February compared with January, according to the National Association of Realtors.