You think Jack is leaving the city and the rest of the Newsies behind, but he comes back to a roaring crowd riding in the Mayor's carriage. All the sweatshop workers come down the street singing and waving the papers they had handed out earlier. So the sweatshop workers are on strike, the Newsies get the paper's costs to go back down, and Jack reunites with Sarah and David, and all ends happily ever after as they go dancing into the sunset (metaphorically).
Continuity mistake: As Jack Kelly rides the horse near the end of the "Santa Fe" sequence, his hat is waving behind him. When it cuts to a different angle the hat is on his head. Note: This was a specific detail put in by the director, symbolizing the boy's mental transition from New York to Santa Fe. However, it failed and is commonly seen as an editing mistake.
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