New York City, U.S. traders saw a positive start to the day on Friday as S&P 500 futures rose following three consecutive days of gains on Wall Street. The optimism was fueled by Alphabet’s strong quarterly results, with futures tied to the S&P 500 up by 0.45% and Nasdaq-100 futures gaining 0.51%.
In after-hours trading, Alphabet’s shares surged by about 5% after the company exceeded expectations for the first quarter. On the other hand, Intel’s shares dropped over 5% after providing disappointing guidance and announcing plans to reduce expenses.
The stock market’s recent gains have been attributed to the strong performance of tech giants, which have rebounded after a period of decline due to concerns about global trade tensions. Investors had been waiting for clarity on trade negotiations, particularly with China.
Following President Trump’s announcement of tariffs on April 2, the market has been volatile as investors await updates on trade talks. China’s Ministry of Commerce spokesperson, He Yadong, stated that there were no ongoing discussions on tariffs and called for the cancellation of unilateral measures on China.
The White House indicated a possible softening of its stance on China tariffs, which currently stand at 145%. This news, along with positive tech earnings, has boosted market sentiment.
Experts anticipate further choppiness in the stock market in the coming weeks, with tech earnings likely to influence market direction. Despite the uncertainty, major indexes are on track to end the week with gains. As of Thursday’s close, the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite have all seen increases.
Investors are also awaiting consumer sentiment data for April, which is expected to be released at 10:00 a.m. ET. Economists predict that the reading will remain unchanged from the previous month at 50.8.
Overall, the market is responding positively to recent developments, showing resilience amidst ongoing trade uncertainties and economic data releases.