Stocks surged for a third consecutive day, with the Nasdaq Composite leading the charge, up 2.7%. The Dow Jones Industrial Average rose by 1.2%, or 487 points, driven by a strong rally in tech stocks.
The momentum started earlier in the week as investors hoped the Trump administration might ease its tough stance on China, alongside expectations of a more dovish Federal Reserve. President Trump mentioned on Wednesday that his team was “actively” engaging in trade talks with Beijing, which sparked optimism. However, China played down these hopes on Thursday, clarifying that it had not held any formal negotiations with the U.S., nor reached any agreements.
This mixed messaging from the White House and Beijing has led to continued volatility in the markets, with investors remaining cautious about trade and economic policy shifts.
Earnings reports are also in focus, as companies adjust to the economic turmoil caused by tariffs. Major brands like Chipotle, PepsiCo, and Merck have warned that the tariffs could drive up their costs, which could impact consumer prices and profits.
In other economic news, sales of existing homes fell 5.9% in March, marking the biggest monthly drop since 2022. High home prices and ongoing economic uncertainty have deterred buyers from entering the market.
Market Overview:
The S&P 500 rose 2% on the day and is up 3.8% for the week, while the Nasdaq has gained 5.4%.
Alphabet (Google’s parent company) saw a 4% post-market gain after its earnings report, while Intel shares dropped 5%.
IBM’s earnings report caused its stock to slide 6.6%, weighing on the Dow.
Information technology stocks were the best-performing sector within the S&P 500, gaining 3.5%.
Other Key Indicators:
The 10-year Treasury yield fell to 4.304%, after briefly surpassing 4.38% on Wednesday.
The U.S. Dollar weakened against the euro and Japanese yen, as measured by the WSJ Dollar Index.
Gold futures rose to $3,332 per ounce, following a record high earlier in the week, before dropping slightly on Wednesday.
Despite the volatility, the overall market is reflecting cautious optimism, with tech stocks leading the way and investors hoping for a resolution in the ongoing trade uncertainty.
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