Weekly Stock Market Update | Dow, S&P 500, NASDAQ News – May 03, 2025 at 12:28 PM

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.