U.S. Stocks Rise on Positive Tech Earnings amid Trade War Uncertainty
U.S. stocks saw a boost on Thursday, with the Nasdaq leading the way. Microsoft and Meta’s strong earnings reports reassured investors worried about the economic fallout from the ongoing trade war between the U.S. and China.
The Nasdaq Composite gained 1.52%,driven by a 7.6% jump in Microsoft shares and a 4.2% rise in Meta. Both tech giants reported better-than-expected quarterly profits, easing fears about the impact of tariffs on their AI, cloud, and ad revenues. The S&P 500 and Dow Jones also closed higher, despite some losses during the session. The S&P 500 rose 0.63%, while the Dow Jones added 0.21%, extending its winning streak.Microsoft and Meta’s performance helped lift the market, despite signs of economic slowdown.Weekly jobless claims hit a two-month high, and Q1 GDP contracted, hinting at a weaker labour market. However, the market remained optimistic, awaiting Apple and Amazon’s earnings reports.
Apple and Amazon face challenges from the White House’s trade policies. Apple is considering shifting iPhone production from China, and Amazon promised not to pass tariff costs to consumers.McDonald’s,however,reported weaker consumer demand and tariff pressure,causing its shares to drop 2%.
On the geopolitical front, there are hints of a potential restart in U.S.-china trade talks. White House sources suggest new trade deals could be on the horizon, though the Trump administration insists China must take the first step.
Investors will closely watch Apple and Amazon’s earnings, hoping for more positive news to sustain the market’s upward trend.
