Author: PAZAMBA

China perceives the recent US trade deal as a significant victory with minimal concessions. The 90-day tariff pause and initial agreement have allowed tariffs on both sides to drastically reduce, generating praise from the Chinese public and media. To prevent reciprocal tariffs, US and China have agreed to temporarily halt the majority of tariffs on each other’s goods – a decision that has various implications for the stock market.

The semiconductor firms Broadcom and Nvidia, e-commerce giant Amazon, and tech conglomerate Apple are among the significant beneficiaries of eased US-China trade tensions. Broadcom shares rose by over 5.5% due to the firm’s substantial business in China, with the country accounting for 20% of its overall revenue last year. Similarly, Nvidia saw a nearly 5% increase in shares, and Amazon experienced nearly an 8% surge in its stock. It should be noted, however, Jim Cramer cautioned against chasing this rally due to the risk of potential selling pressure.

Meanwhile, a technical glitch in Fidelity investments prevented some investors from accessing their accounts on the day of the market rally – an issue that may have been particularly challenging for day traders, institutional investors, and options investors.

Returns in the market’s trust in President Trump came with hopes that the US-China trade deal will prevent potential damage to the stock market. However, investing conditions remain cautious, as uncertainties surrounding the negotiations persist.

Lastly, the strong rally led by the US-China agreement to cut tariffs saw major averages rally across the board, boosting optimism among investors and reducing fears of a prolonged trade war.

Stock futures soared on May 12 following the announcement that the U.S. and China agreed to temporary tariff cuts. The S&P 500 is expected to open 3% higher, the Dow is set to increase by roughly 1,100 points, and the Nasdaq 100 may open up by 4%.

However, pharmaceutical stocks are underperforming due to anticipation of President Trump’s proposal to lower U.S. drug prices. Stocks such as Pfizer, AbbVie, Merck, and Eli Lilly are currently lower. Companies most likely to benefit from eased trade tensions include those that manufacture goods in China for sale in the U.S.

Pharmaceutical stocks also experienced volatility, with initial losses recovering later in the day after fears regarding the executive order on drug prices seemed less severe than initially anticipated. Merck’s shares rose 5%, with Pfizer, Bristol-Myers Squibb, and Eli Lilly gaining more than 2% each.

Tech stocks, including Amazon and Tesla, which had been seeing declining sales in China, each rose about 7%. Apple shares increased more than 5%.

Retail stocks experienced a significant boost following the U.S.-China tariff agreement announcement. Five Below and RH both soared about 17%, while Nike, Lululemon, and Estée Lauder rose by around 7%.

Carvana, a used-auto retailer whose share price had previously dropped significantly, has been executing well, with a 38% year-over-year revenue increase. The company’s shares are up 34% this year as used car prices rise and demand for value-oriented service offerings heat up.

Chinese stocks also gained, with e-commerce giants PDD Holdings and Alibaba each rising more than 6%, and tech giant Baidu surging 5%.

NRG Energy gained about 23% following an announcement that it plans to acquire a power portfolio from LS Power for $12 billion that consists of natural gas generation facilities across nine states.

The top performers in S&P Industrials in the current market environment, with the sector leading the pack in terms of headcount. However, very few top stocks exist in materials, real estate, and energy sectors.

The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite ended the week down due to uncertainty and trade war fears between US and China. The Dow Jones decreased by 119.07 points, or 0.29%, settling at 41,249.38. The S&P 500 dropped slightly by 0.07%, closing at 5,659.91. The Nasdaq Composite closed almost unchanged at 17,928.92.

Throughout the week, the S&P 500 slid about 0.5%, the Nasdaq dropped roughly 0.3%, and the Dow fell nearly 0.2%. The expectations around upcoming US-China trade talks and changes in tariff rates introduced volatility into the market. The tariff on China could potentially be reduced to 80%, as reported by President Trump, which is a de-escalation from the current 145%.

Big movers of the week included shares of Pinterest, which surged due to a positive quarterly revenue outlook, which motivated hopes of strong ad spending on the platform despite tariff risks. However, Expedia’s stock price slid because of missed revenue estimates due to decreased US demand. In addition, Berkshire Hathaway stock dropped about 5% after the approval of Greg Abel as Warren Buffett’s successor starting in 2026.

Tesla also experienced a dip of 1.8% in its shares as the company’s new car sales in Britain and Germany fell to their lowest in over two years. Goldman Sachs shares dipped 1.8%, pulling the Dow down.

While the trade negotiations continue and the trade war escalates, the market is expected to experience ongoing volatility until concrete agreements are reached.

The Dow Jones Industrial Average rose around 0.6%, or roughly 250 points, the S&P 500 climbed around 0.6%, and the Nasdaq Composite grew roughly 1% as the US stock market rallied in response to President Trump’s unveiling of a US-UK trade deal and indications of upcoming China discussions. Notably, the UK talks resulted in the potential for billions of dollars of increased market access for American exports. The US will reduce tariffs on auto and steel imports, but a 10% tariff on UK imports remains.

Unremarkable performances marked the following day as the Dow Jones grew 0.7%, or approximately 300 points, the S&P 500 ticked up 0.4%, and the Nasdaq Composite edged up around 0.3%. Alphabet’s 7% drop weighed on the Nasdaq, while the Dow was spurred by a 10% increase in Disney stock. The Federal Reserve’s decision to maintain interest rates also factored into these changes.

Despite this positive movement, talks between China and the US indicate that the S&P 500’s 13% rally since April 8 could be nearing its end. Other factors affecting the market next week will include inflation data with the April consumer price index set to release on Tuesday. Regarding earnings, major reports including Walmart and Alibaba are yet to release. Currently, S&P 500 earnings report beat estimates at an above-average rate even as analysts slash their expectations.

Lastly, the Dow Jones added 254.48 points, or 0.62%, settling at 41,368.45, the S&P 500 grew 0.58% to reach 5,663.94, and the Nasdaq Composite increased 1.07% to close at 17,928.14. Stocks increased after Trump announced a trade deal framework between the U.K. and the U.S. Significant contributors included Alphabet and Boeing shares, which increased nearly 2% and 3% respectively. However, concerns remain about a potential global trade war, which could increase prices and worsen inflation.

The S&P 500 reported a slightly lower performance last Friday, ending the week at pretty much the same level it began. Despite major headlines around corporate earnings, AI developments, a Federal Reserve meeting, and trade deals, the market seems to have needed time to digest its historic comeback over recent weeks. The Dow Jones Industrial Average was up 0.1% over the last four trading sessions, while the S&P 500 was down 0.4% and the Nasdaq Composite was 0.3%.

Regarding individual stocks, TSMC, the world’s largest semiconductor manufacturer, saw an uplift in its share price after reporting better-than-expected sales in April, up 22.2% month over month and 48.1% year over year. Its growth suggests that the AI infrastructure ramp remains in full swing, a good sign for Nvidia, TSMC’s primary chip supplier. Although Nvidia traded lower on Friday, it is on pace for a positive week.

Human resources software startup Rippling saw its valuation rise to $16.8bn after a recent fundraising round of $450m. Despite the past three years seeing a lack of tech IPO activity, Rippling’s co-founder, Parker Conrad, said the company has no plans for an IPO in the near future.

Notable stock movers included Insulet, whose shares surged 19% after Q1 results beat estimates, and Lyft, which surged almost 23% following a profit report in Q1 and a boosted share repurchase plan. On the other hand, firms that saw losses included Expedia, which declined 7% on lower-than-expected top-line results, and Sweetgreen, which saw its shares fall 17% after a downward revision in its full-year outlook.

In the coming week, Wall Street will watch out for the results of the US-China trade talks, and look ahead to earnings results from notable companies such as Cisco and Walmart.

In recent financial news, concerns over trade deals have been highlighted by Bank of America’s chief investment strategist, Michael Hartnett. He posited that the stock market rally may falter on completion of the deals. The S&P 500 large-cap index and Nasdaq Composite have seen a steady rise despite fluctuations tied to tariff speculations. In the last month, they recorded gains of approximately 4% and 5%, respectively. Hartnett also anticipated more than $600 billion of taxes on imports.

Several companies made significant moves in the stock market. Coinbase slipped by 2% following lower than expected first-quarter revenue of $2.03 billion, with earnings dropping from $4.40 to 24 cents per share. Expedia stocks fell by 10% due to reports of lower Q1 revenue and poor guidance. On a positive note, Lyft’s shares climbed by more than 11% after the announcement of a share buyback increase to $750 million. Pinterest stocks surged close to 14% after issuing stronger second quarter revenue predictions. Shares of the medical device company, Insulet, also surged by over 12% after topping expectations in its Q1 report. On the downside, Affirm’s shares dropped by 7%.

Ahead of key trade discussions, President Donald Trump indicated his openness to reduce Chinese tariffs to 80%. The proposed rate is still considerably higher than the industry had hoped for and remains potentially prohibitive to trade.

In relation to the art market, there’s an anticipation of $1 billion worth of artwork being placed up for auction in New York next week. Despite a decline in global art sales over the last two years, Christie’s CEO Bonnie Brennan expressed confidence in art as a “safe haven” during times of volatility. The auctions include a Giacometti bronze bust valued at between $70 million to $90 million and 40 works from Roy Lichtenstein’s private collection.

Stocks surged on Thursday led by sectors such as energy, industrials, banks, and consumer discretionary. This was driven by President Donald Trump’s announcement of a trade deal with the United Kingdom, which includes a $10 billion aircraft parts procurement from Boeing. This led to Boeing shares adding over 3% on Thursday. Goldman Sachs shares also rose approximately 3% due to increased optimism surrounding the reduction of deal-making uncertainty.

Coinbase shares are showing strong technical characteristics in anticipation of its quarterly earnings report and with Bitcoin retesting the $100,000 level. Following Coinbase’s recent acquisition of crypto options firm Deribit, a new bullish phase is expected.

CrowdStrike plans to lay off 500 people, or about 5% of its workforce, attributing it to advancements in AI. Meanwhile, Nintendo expects to sell 15 million of its new Switch 2 consoles in the fiscal year ending March 2026.

AppLovin shares jumped 12% following better-than-expected Q1 results and announced its plan to sell its mobile gaming business in a $400 million deal. Meanwhile, stocks for MercadoLibre and Crocs also rose following positive Q1 results. However, Carvana, Arm Holdings, and Cleveland-Cliffs witnessed a fall in shares due to disappointing Q1 reports or negative future quarter predictions.

Krispy Kreme shares plunged 24% after the company announced to reassess its partnership with McDonald’s and pulled its full-year outlook. It cited economic “softness” as a reason behind the move.

The stock market gained traction after President Donald Trump revealed a new trade deal between the US and UK. However, pharmaceutical stocks are slipping due to concerns about possible drug pricing reforms on Trump’s agenda. Eli Lilly saw a decline of as much as 4.7%, while Bristol-Myers Squibb fell by up to 2.3%.

Despite this, Apple and Alphabet stocks experienced a surge following news that Apple was considering retooling its Safari browser for AI-powered search engines. Costco also boasted strong sales for April, with an overall 4.7% increase in total net sales. Chip stocks including Nvidia are on the rise after it was reported that Trump won’t enforce AI diffusion rules set by the Biden administration.

In the retail sector, Costco reported a rise of 6.7% in April’s same-store sales. Tapestry, the owner of brands like Coach and Kate Spade, saw its shares increase by 9% following a better-than-expected quarter and an upgraded revenue outlook for the full year. On the downside, pharmaceutical stocks like Eli Lilly and Bristol Myers Squibb were down, amid reports that the Trump administration plans to target Medicare drug pricing.

Coinbase has made its largest acquisition to date, agreeing to purchase Dubai-based crypto derivatives exchange Deribit for $2.9 billion. The acquisition stands to solidify Coinbase’s international presence in the crypto derivatives market. The transaction is expected to close by the end of the year and resulted in a nearly 6% surge in Coinbase shares.

National Vision is predicted to have a strong second half of the year, according to Bank of America. An analyst from the bank doubled upgraded the company’s shares due to several signs that its strategic initiatives are yielding results.

Retail investors have shown greater interest in shares of Nvidia and Tesla, but were less enthusiastic about Apple due to tariff concerns. Nvidia and Tesla saw inflows of $1.2 and $1.1 billion respectively from retail investors. On the flip side, about $400 million was pulled out from Apple shares by retail investors amid concerns regarding the impact of Trump’s tariffs on Apple’s earnings.

The Federal Reserve maintained its key interest rate range at 4.25%-4.5%. The Dow Jones Industrial Average was up nearly 300 points, despite fears over the Fed’s depiction of economic risks, which it attributes significantly to geopolitical uncertainties. Markets are unsure of how President Trump’s tariff push will affect the economy, raising the possibility of a stagflationary scenario. The Fed’s recent statements suggest a wariness to act preemptively in cutting interest rates.

In terms of top stocks, Alphabet’s shares fell significantly due to claims that AI will replace search engines and rising competition in core search. Uber’s shares also slipped despite an 18% increase in trips during Q1. Disney’s shares rose after topping Q2 expectations, revealing strong subscriber growth for Disney+, and announcing plans for a new theme park in Abu Dhabi. Smaller gainers include Lionsgate Studios, Logitech, and Novo Nordisk. Conversely, Arista Networks, Super Micro Computer, International Flavors & Fragrance, and Rivian Automotive are among the notable losers.

As discussions between US and Chinese officials draw focus, the market is waiting for clarity on the progress of trade deals, which are foundational to projections of inflation and growth.

Shares of Alphabet, the parent company of Google, plummeted 8% after Apple’s services chief, Eddy Cue, commented on the potential future dominance of AI over standard search engines. This hit both Alphabet and Apple stocks, with the latter falling 2%. It raises questions about the future of Google as the default search engine on Safari, especially since the relationship between the two tech giants is already under scrutiny in an ongoing Department of Justice lawsuit.

In other news, JPMorgan recommends investors position themselves for potential upside due to former President Trump’s teased “very big announcement.” The specifics of the announcement were not disclosed, but its potential to drive the market led JPMorgan to suggest purchasing S&P 500 call options to capitalize.

In the tech sector, there is restructuring news. Cybersecurity firm, CrowdStrike, plans to reduce its global workforce by 5% in an effort to boost efficiency. Despite shares falling almost 4% on the announcement, the move is viewed positively for the company’s long-term efficiency goals.

Meanwhile, Disney’s stock climbed more than 10% after posting impressive earnings results and offering positive updates on its latest theme park in Abu Dhabi. Likewise, Honeywell’s shares increased by over 2% following an upgraded rating to ‘buy’ by Bank of America, driven by expected stable and positive earnings revisions and business simplification through upcoming spin-offs.

Finally, billionaire investor Warren Buffett has downplayed the recent market volatility, claiming it to be insignificant compared to historical data. While acknowledging the recent jitters in the market, Buffett said the current situation is far from a dramatic bear market, urging investors to adapt to the financial climate rather than expect it to adjust to them. Though the S&P 500 was roughly 9% below its February peak at the time of his comments, Buffett remained unperturbed by short-term volatility.

The S&P 500 snapped a nine-day winning streak on Monday as investors wavered over global trade concerns. It shed 0.64% to close at 5,650.38, while the Nasdaq Composite dropped by 0.74% to end at 17,844.24; the Dow Jones Industrial Average lost 98.60 points, or 0.24%, to close at 41,218.83. Investors are concerned about tariff agreements between the U.S. and international trade partners. There was, however, an improved sentiment after reports that India had proposed zero tariffs on certain commodities on a reciprocal basis.

Trump’s announcement of a 100% tariff on foreign-produced films led to an initial drop in shares of Hollywood studios and streaming services. Although the president later softened his stance and agreed to meet with the industry, Netflix and Warner Bros. Discovery experienced continued losses, closing down 2%. Ford suspended its 2025 financial guidance due to potential supply chain disruption and potential tariffs, expecting a $2.5 billion impact from Trump’s tariffs this year.

OpenAI announced that it will remain within nonprofit control despite restructuring, amid pressure from Elon Musk and former employees. The statement comes in light of a lawsuit between Musk and the AI startup over transitioning the business into a for-profit organization.

Concerns about inflation saw Goldman Sachs lower its West Texas Intermediate crude price forecast for the second half of 2025 and 2026 to $56 per barrel. This follows the agreement by OPEC+ to increase production by 411,000 barrels per day in June, a reversal of higher prices that could help fight inflation.

Active management is making a comeback in the typically index fund-dominated equity exchange-traded fund (ETF) market. Actively run funds took 34% of the flows for the trading week ending April 25. As per Jon Maier from JPMorgan Asset Management, there is parity between active and passive funds, even though index funds still hold the larger share of total assets.

AI research company OpenAI has decided to retain nonprofit control over its operations. The company had been under pressure to convert into a for-profit entity, largely due to a dispute with co-founder Elon Musk over his own AI startup, xAI. However, the nonprofit announced it will remain in control and restructure into a public benefit corporation. OpenAI, valued at $300 billion and backed by Microsoft, will maintain its focus on AI research.

Donald Trump, current US President, has falsely claimed that gasoline prices have dropped below $2 per gallon in an effort to pressurize the Federal Reserve to lower interest rates. However, data from AAA shows that US drivers were paying on average $3.165 per gallon on Monday, a slight rise from last week. Despite this, Trump continues to boast about low gas prices on his social media platform, Truth Social.

Berkshire Hathaway’s CEO, Warren Buffet, has announced he is stepping down, causing the company’s shares to fall by 5%. Though he will remain as chairman, the decision has created a ripple effect in the market, causing some short-term volatility. Greg Abel will take over as CEO, promising to carry on Berkshire’s culture and patient value investing style.

Footwear company Skechers USA saw its shares surge by 24% after it announced a planned acquisition by 3G Capital for $63 per share. However, shares of the food-processing company Tyson Foods slipped by 7.8% following a slight miss on revenue targets for the second fiscal quarter.

Finally, Trump’s announcement of a 100% tariff on movies produced outside the US saw streaming stocks such as Netflix, Amazon, Paramount Global, and Warner Bros. Discovery drop by roughly 2%. The decision, announced via post on Truth Social, has been positioned as an attempt to revive the “dying” American movie industry.

Market indexes on day (Please note to clarify the real values with Dow, S&P, Nasdaq)

Automaker Ford is set to report its first-quarter earnings, and Wall Street estimates a 9.2% decrease in revenue compared to the previous year and a 96% dive in adjusted earnings per share. The focus is expected to be on the company’s 2025 guidance and the impact of Trump’s auto tariffs. Meanwhile, Adam Parker, founder of Trivariate Research, warns investors to not be too optimistic, saying that markets now are measurably “worse and more uncertain” than at the beginning of the year, despite recent comebacks.

Tech stocks CrowdStrike and Uber have been named among the best in the market by Ritholtz Wealth Management. Both have seen significant rallies and are claimed to be businesses that can beat a recession. Uber is the fifth-best-performing stock in the S&P 500 this year, up by 40%, and CrowdStrike is regarded as one of the premier cybersecurity companies globally.

Warren Buffett plans to step down as CEO of Berkshire Hathaway by year-end after six decades. Since taking over a failing textile company in 1965, Berkshire shares have skyrocketed by 5,502,284%, compared to the broad S&P 500 which rose by 39,054% during that period. Pershing Square CEO, Bill Ackman, predicts that Berkshire might increase its cash returns to shareholders once Buffett steps down, possibly through a dividend and more aggressive stock buybacks.

The US stock market has made a significant recovery after President Trump’s “Liberation Day” tariffs announcement on April 2 resulted in a crash. Since then, the index has regained its losses and the S&P500 was up 0.3% from its closing level reached on April 2. Major contributors to this recovery include Trump’s decision to pause on tariffs followed by positive earnings from Big Tech companies.

Furthermore, on Friday, the S&P 500 advanced by 1.47% and closed at 5,686.67 after a surprisingly good nonfarm payrolls report for April, effectively defying recession fears. This marks the longest winning streak for the S&P 500 since November 2004. The Dow Jones benefited as well, jumping by 564.47 points or 1.39% and ending at 41,317.43. The Nasdaq Composite also experienced a rise of 1.51% and settled at 17,977.73.

Despite the recovery, investors are keen to see the outcomes of potential negotiations between the US and significant trading partners such as China, Japan, Mexico, Canada or the Eurozone. Any successful deals could solidify the stock market turnaround.

In terms of gainers and losers in the stock market, Apple (AAPL) slipped 3.7% after its fiscal second-quarter revenue didn’t meet analysts’ expectations, coupled with the company’s projection of an increase in costs due to tariffs. On the contrary, despite harboring under the pressure of tariffs, earnings reports suggest that the likes of Amazon (AMZN), Meta (META), Microsoft (MSFT), Chevron (CVX), Eli Lilly (LLY) and Coca-Cola (KO) who are due to declare their financial results, could potentially alter the tone in the market.

In summary, the stock market is demonstrating resilience despite the tariff pressures, driven primarily by the tech sector recovering and potential trade talks hinting at a feasible bounceback. But strategists warn that uncertainty around the policy and its potential impacts could lead to continued volatility in the market. The discussion of tariffs and the market’s reaction will be crucial in the upcoming weeks.

The U.S. stock market rallied back to its position on April 2nd, the day President Donald Trump announced steeper tariffs on U.S. trading partners, causing fears of a recession. Tumbling prices for U.S. government bonds and the sinking value of the U.S. dollar have prompted concerns about the U.S. Treasury losing its status as a safe haven for investors.

Last week, the S&P 500 rallied 1.5% for a ninth straight gain, and now stands more than 7% below its all-time high set earlier this year. The Dow Jones Industrial Average also made gains, climbing 300.03 points or 0.75%, to close at 40,527.62. The S&P 500 gained 0.58%, ending at 5,560.83, and the Nasdaq Composite advanced 0.55%, settling at 17,461.32.

Among the top gainers were Honeywell, as well as Microsoft and Meta, who delivered strong earnings that topped Wall Street’s expectations. Microsoft and Meta stock surged, ending up over 7% and 4%, respectively. But not all stocks fared well. Among the main losers were Amazon, General Motors and McDonald’s. Amazon’s shares went down after it announced a plan to show tariff surcharges on its site, General Motors was off by 0.6% after reassessing its future guidance due to tariff impacts, and McDonald’s shares fell more than 1% amid a slump in US sales.

Overall, the markets could easily fall again due to ongoing uncertainty about the impact Trump’s tariffs will ultimately have on the economy. Investors are waiting for further indications of policy change and trade progress.

After a 10% drop in early April following President Trump’s announcements of reciprocal tariffs, the S&P 500 has regained its losses ‒ it is up 0.3% since April 2. A 90-day pause on tariffs and positive earnings from key tech companies have both contributed to this recovery. The Dow Jones recovered by 564.47 points, reaching 41,317.43, while the Nasdaq Composite gained 1.51%, settling at 17,977.73. Over the week, the S&P 500, the Dow, and the Nasdaq increased by 2.9%, 3%, and 3.4% respectively.

Recent positive developments include a better-than-expected nonfarm payrolls report for April and an indication from China that the country is considering starting trade negotiations with the U.S. Earnings reports from tech giants Apple and Amazon have also been influential ‒ although Apple shares took a 3.7% hit following subpar Q2 revenue results and the announcement of a $900 million rise in costs due to tariffs.

AI-focused companies Microsoft and Meta Platforms also reported solid quarterly results, pushing their shares up by 7.6% and 4.2% respectively, which helped soothe investor concerns about the impact of tariffs on the AI industry. However, this optimism was restrained slightly by a disappointing GDP report for the first quarter and increased weekly jobless claims. Apple and Amazon are due to post results this coming Thursday, providing more potential turbulence for the markets.

Negotiations on trade deals are ongoing, with a major one close to completion, according to Commerce Secretary Howard Lutnick, sparking hopes that stocks could be preparing to make a significant recovery. Meanwhile, the tech industry is still grappling with the impact of tariffs ‒ General Motors is reviewing its future guidance and halting stock buybacks, while Amazon has decided not to display tariff surcharges on its discount store.

Staring off a significant week of earnings reports and wide-ranging economic data, the stock market saw a mixed performance. The S&P 500 (^GSPC) rose just above the flatline erasing a 1% loss, marking its fifth straight day of positive gains. The Dow Jones Industrial Average (^DJI) also edged up 0.3%, hitting its longest winning streak of 2025. The Nasdaq Composite (^IXIC), however, fell below the flatline.

Stock market investors are eagerly anticipating the quarterly financial results of 180 S&P 500 companies, led by Big Tech companies Apple (AAPL), Amazon (AMZN), Meta (META), Microsoft (MSFT) alongside names like Coca-Cola (KO), Eli Lilly (LLY), and Chevron (CVX).

The Nasdaq led US stocks higher on Thursday after Microsoft (MSFT) and Meta (META) posted strong earnings results, easing fears about Big Tech’s prospects amid President Trump’s tariff upheaval. The S&P 500 rose around 0.6% to close with a gain, while the Nasdaq Composite gained 1.5%. The Dow Jones Industrial Average added about 0.2%, marking its longest winning streak of the year.
Microsoft and Meta both topped Wall Street expectations for quarterly profit, leading to stock surges of over 7% and 4% respectively.

Amazon (AMZN) shares declined following the announcement of the company’s second quarter operating income which fell below Wall Street expectations. Meanwhile, fast-food giant McDonald’s (MCD) posted a first quarter earnings miss and slump in US sales, citing fallout from tariffs, resulting in a 1% drop in shares.

Finally, the U.S. stock market closed higher on Thursday to start May due to strong earnings results by AI giants. The Dow Jones Industrial Average (DJI) rose 0.2% to close at 40,752.96 marking an eight-day winning streak and the Nasdaq Composite finished at 17,710.74, up 1.5% . The S&P 500 was up 0.6% to finish at 5,604.14 continuing an eight-day winning streak.

The stock market rally continued on Friday with the S&P 500 posting its longest winning streak since 2004, following China’s openness to trade talks and a strong jobs report. The Dow closed higher by 564 points, or 1.39% and the S&P 500 and Nasdaq composite gaining 1.47% and 1.51% respectively marking their ninth consecutive daily gain.

In Big Tech, Meta (META) and Microsoft (MSFT) added to the week’s rally with share gains of 4.2% and 2.3% respectively while Apple (AAPL) saw a drop of 3.74% following less well-received earnings. Amazon (AMZN) shares also edged lower following mixed guidance for the year.

1. Chinese bargain retailer, Temu, has shifted its business model due to de minimis tariff loophole’s expiration. This move was a response to President Donald Trump’s new rules on low-value shipments. Previously, Temu gained business from selling ultra-discounted items shipped direct from China, which entered the US duty-free because of the de minimis rule. With de minimis’ expiration and introduction of new tariffs, Temu has resorted to listing products shipped from US-based warehouses only. Hereafter, Temu sales in the US will be handled by local sellers.

2. The S&P 500 had the longest winning streak since 2004 (nine consecutive gains) as China hinted openness to trade talks and positive jobs report was released. The Dow gained 564 points (1.39%), the S&P 500 rose 1.47% while Nasdaq Composite noted a gain of 1.51%. Better-than-expected labor data and potential trade deals teased by the Trump administration contributed to the rally.

3. The biggest gainers of the week were Microsoft with 11.7% gain owing to a positive quarterly earnings report, Meta Platforms with 10.4% boost after its better-than-expected quarter results, and Honeywell, which noted a 7.7% jump after impressive quarterly results. On the flip side, the stocks that lagged included Eli Lilly down by 7.3% as its rival Novo Nordisk announced a threatening partnership, Apple down by 1.3% due to a miss in its year-on-year revenues, and Amazon, which was slightly up by 0.7%.

4. The world’s two biggest actively managed exchange-traded funds (ETFs), the JPMorgan Equity Premium Income ETF (JEPI) and JPMorgan Ultra-Short Income ETF (JPST), have managed to offer investors downside protection while generating income. JEPI, although fell around 3% in April, offers investors increased income when the Volatility Index (VIX) increases. On the other hand, JPST focuses on fixed income and has remained virtually flat so far this year.

5. The top movers in the stock market included Duolingo, who reported a boost of more than 21% due to better-than-expected revenue forecast, and Apple, whose shares decreased by 3.7% due to missing fiscal second-quarter services revenue. Amazon noted a slight decrease of 0.1% after giving soft guidance for the current period, while Nvidia noted an advancement of 2.5% from tailoring chips for sale in China after the US export ban.

Jeff Bezos, Amazon’s founder, plans to sell up to 25 million Amazon shares, worth around $4.8 billion based on the current price. This significant sell-off follows Amazon’s Q1 earnings report, which showed strong profit and revenue, but signaled uncertainty around the impact of new tariffs.

Meanwhile, in today’s stock market, job growth and the S&P 500’s nine-day winning streak are among the top factors to watch. However, concerns over the cost impact of tariffs have led to a pre-market drop in Apple shares by 3% and a 2% decline in Chevron shares owing to earnings and cash flow misses.

On a positive note, the cloud unit of Amazon has been performing strongly despite concerns about the impact of the Chinese market. Netflix shares are also trading at record high levels after 11 consecutive days of gains. While other media stocks have suffered from the uncertainties surrounding trade policy, Netflix shares have risen more than 30% since mid-January 2025.

In contrast, shares of Block have plunged by nearly 22% following weaker than expected Q1 earnings. Analysts highlighted issues such as stagnant user growth of its Cash App and lower consumer spending. Financial technology companies are expected to continue feeling the impact of such factors.

Finally, Morgan Stanley picked Taiwan Semiconductor Manufacturing as its top stock after strong AI capital expenditure from Meta and Microsoft dispelled prior concerns. The bank expects a quick rebound in the stock, citing dismissed worries about the sustainability of AI demand and the impact of U.S. tariffs on semiconductors.