## Technology Boosts US Stocks Amid Strong Earnings
Technology firms are driving US stock performance on Thursday following a new set of impressive earnings reports. Major indexes are close to recovering from the losses caused by the recent tariff upset that affected the markets just weeks ago.
The S&P 500 and Nasdaq 100 have reduced earlier gains but still show an increase of over 1%. Shares of Microsoft Corp. and Meta Platforms Inc. surged following positive earnings results. Additionally, news of the US considering a possible reduction of sales restrictions on Nvidia Corp. to the United Arab Emirates also lifted stock prices. Treasury yields increased, with the 10-year yield hovering around 4.23%, while the dollar index experienced a rise.
## Market Optimism Fueled by Tech Earnings
The positive performance of tech companies is largely fueling market optimism, along with the anticipation that trade agreements will provide relief to various countries from the highest tariffs introduced on April 2. Kevin Hassett, the National Economic Council Director, mentioned that the Trump administration is making headway in tariff negotiations and expects to have updates by the end of the day, which further enhanced market sentiment.
Georgios Leontaris, the chief investment officer for EMEA at HSBC Global Private Banking, commented that the strong earnings reports from major tech companies are reassuring investors and are contributing positively to equity market futures. He also noted the ongoing discussion about whether the peak of tariff-related concerns has passed.
## Analysts Eye Apple Results
Analysts are keenly awaiting the results from Apple Inc. set to be released after market closure, looking for insights on how the company perceives the impact of tariffs on its supply chain that relies heavily on China, Vietnam, and India. In other economic news, weekly jobless claims in the US have risen to the highest level since February, while manufacturing activity has decreased significantly, marking the largest contraction since November.
General Motors Co. has revised its full-year profit projections downward due to the impact of auto tariffs, representing one of the significant financial repercussions from the ongoing trade turmoil. Meanwhile, shares of McDonald’s Corp. fell after the company’s first-quarter sales fell short of expectations. Qualcomm Inc. also saw its stock drop after it provided a cautious forecast, attributing concerns to tariffs potentially harming demand for its products.
## Positive Sentiment Amid Trade Talks
Despite some disappointing earnings results, the overall market sentiment remained optimistic after reports indicated that the US has been proactively engaging with China through various channels. Conversely, US President Donald Trump expressed that he would not rush into deals to satisfy anxious investors and stated that market volatility is not related to tariffs.
Most European and many Asian markets are closed for holidays.
The Japanese yen weakened after the Bank of Japan announced it would take longer than expected to reach its inflation targets.
## Commodity Market Movements
In the commodities sector, brent crude recovered its losses as US equity markets strengthened. Gold prices fell for the third consecutive day as signs of potential progress in trade negotiations between the US and several countries reduced the demand for safe-haven assets.
Additionally, the US and Ukraine have struck a deal regarding access to the country’s natural resources, providing some reassurance to officials in Kyiv who were concerned about Trump possibly retracting his support in peace discussions with Russia.
## Key Market Movements
### Stocks
– The S&P 500 increased by 1.1% as of 11:54 am New York time
– The Nasdaq 100 saw a rise of 1.7%
– The Dow Jones Industrial Average rose by 0.7%
– The Stoxx Europe 600 remained relatively unchanged
– The MSCI World Index climbed by 0.6%
### Currencies
– The Bloomberg Dollar Spot Index increased by 0.6%
– The euro declined by 0.5% to 1.1267 dollars
– The British pound dropped by 0.5% to 1.3266 dollars
– The Japanese yen fell by 1.8% to 145.62 per dollar
### Cryptocurrencies
– Bitcoin rose by 2.6% to 96,995.51 dollars
– Ether increased by 3.3% to 1,853.46 dollars
### Bonds
– The yield on 10-year Treasuries increased by seven basis points to 4.23%
– Germany’s 10-year yield decreased by five basis points to 2.44%
– The yield on Britain’s 10-year bonds rose by five basis points to 4.49%
### Commodities
– West Texas Intermediate crude rose by 0.5% to 58.48 dollars per barrel
– Spot gold fell by 2.3% to 3,213.88 dollars per ounce
