The Dow Jones Industrial Average, S&P 500, and Nasdaq 100 futures saw significant gains in premarket trading early Thursday. Strong earnings from major technology companies like Meta Platforms and Microsoft fueled optimism in the market. These results followed strong earnings from Google’s parent company, Alphabet, last week.
Global Markets | Here's a look at how the global equities performed overnight📈 #Nasdaq #DowJones #FTSE #CAC #DAX pic.twitter.com/5eFVa4oJlB
— ET NOW (@ETNOWlive) May 1, 2025
Investors are now looking forward to earnings reports from Apple and Amazon, expected later today.
#MarketAlert | US Markets At Open: S&P 500 opens 1.3% lower, Nasdaq 100 down 1.9%#USA #Snap #Starbucks #SuperMicro #DowJones #Nasdaq pic.twitter.com/me7x4Lx4Kb
— ET NOW (@ETNOWlive) April 30, 2025
The series of positive earnings reports has extended the winning streaks of the Dow Jones Industrial Average and the S&P 500 to seven days. For the S&P 500, this marks the most significant seven-day gain since 2020.
However, there are still underlying concerns.
Past 6 days’ U.S. equity rally narrowed performance differential between U.S. and other developed equities: S&P World ex-U.S. now leads S&P U.S. LargeMidCap by 15.7% YTD vs. 19.1% at start of last week@SPDJIndices pic.twitter.com/ujX78SiZ3G
— Liz Ann Sonders (@LizAnnSonders) April 30, 2025
President Donald Trump’s new tariffs are set to come into effect in July, which continues to cause uncertainty in the market. The economy contracted in the first quarter, and the Federal Reserve has not provided clear guidance on potential interest rate cuts to stimulate growth.
2025 Total Returns (through 4 months)…
Volatility $VXX: +41%
Gold $GLD: +25%
FTSE Europe $VGK: +15%
MSCI World ex-USA $ACWX: +9%
US Bonds $AGG: +3%
Bitcoin $IBIT: +1%
—
S&P 500 $SPY: -5%
US Dollar Index $UUP: -7%
Nasdaq 100 $QQQ: -7%
Russell 2000 $IWM: -12%
Oil $USO: -16%— Charlie Bilello (@charliebilello) May 1, 2025
“Wall Street is set to power higher as buds of May optimism unfurl helped by big tech strength,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown in London. “The economy and the markets are behaving erratically in this unpredictable climate, so until the clouds clear a little, the Fed looks highly likely to keep interest rates on hold next week.”
Futures tracking the Dow added 342 points, or 0.8%, before the market opened. S&P futures climbed 1.3%, and contracts tracking the Nasdaq 100 were up 1.8%.
Yields on government bonds extended their declines for the week, with the benchmark 10-year Treasury at 4.16% and the 2-year note at 3.617%.
Tech earnings set market optimism
The dollar also strengthened, with the dollar index rising 0.5%.
Investors are keeping a close watch on the remaining earnings reports and economic indicators that could influence market direction in the coming days. Tech stocks are rallying on Wednesday, raising hopes for a more sustainable market rebound. Adam Turnquist, chief technical strategist at LPL Financial, explained why the tech sector’s performance will be critical to any broader long-term market rally.
Turnquist noted that the tech sector, which has been an underperformer since last summer, is now starting to show signs of recovery. “The tech sector has experienced significant breakdowns throughout the first quarter, with technical indicators not looking great. However, it remains a crucial component of the market due to its substantial weight in the S&P 500,” he said.
Turnquist highlighted that for a sustainable market recovery, tech stocks need not just participate but potentially lead the way. This is particularly important given that tech constitutes about 30% of the S&P 500 index. “It’s hard to imagine a sustainable recovery without tech, and days like today are certainly constructive for viewing this as a more enduring move higher,” he added.
The discussion extended to the market dynamics where stocks that lag during a bear market often lead in the recovery phase. Hence, the tech sector’s recent rally is seen as a positive indicator for long-term market health. In related news, investors are closely watching Apple’s upcoming Q2 earnings, considering it a significant event.
The ongoing debate about whether the AI boom represents a bubble or a new frontier in technology continues to capture attention.
