U.S. equities closed higher on Thursday, boosted by significant gains in mega-cap technology companies as investors navigated mixed signals regarding global trade policy between the White House and Beijing. 📈
The Nasdaq Composite surged 2.74%, while the S&P 500 rose 2.03%. Although the Dow Jones Industrial Average saw a more modest gain of 1.23%, it was significantly impacted by IBM’s 6% decline due to lost government contracts from budget cuts. 📉
Tech stocks like Nvidia, Meta, Amazon, Tesla, and Microsoft all saw increased demand, contributing to the broader market rally and achieving gains for a third consecutive day. Despite this positive momentum, the underlying performance of tech companies has been less than stellar; the Nasdaq, for instance, remains down nearly 3% since Trump’s April 2nd tariff announcement. 📈 📉
While China insisted it was not engaged in current trade talks with the U.S., a potential agreement with South Korea next week provided some optimism, although skepticism persists from analysts.
China denies ongoing trade talks while President Trump’s tone appeared more conciliatory. Treasury Secretary Scott Bessent hinted at a possible deal with South Korea soon. 🌎
Looking ahead, investors await earnings reports from Alphabet, Google, and Intel. 📝 While Alphabet is not expected to show immediate effects from the trade tensions, analysts will be closely watching for any signs of future tariff-related impacts. Intel’s performance under new CEO Lip-Bu Tan will also be a major focus point.
Bitcoin (BTC) traded within the mid-$93,000 range throughout the day.