Stock Market Update | Dow, S&P 500, NASDAQ News – May 02, 2025 at 03:53 PM

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.