New York, New York — Traders on the floor of the New York Stock Exchange welcomed positive news from China on Thursday, as reports surfaced that the country is considering initiating trade talks with the United States. This optimism propelled futures tied to the S&P 500 up by 0.68%. Dow Jones Industrial Average futures also experienced a noteworthy rise of 0.82%, equating to 337 points, while Nasdaq 100 futures gained 0.32%.
Amid the trading frenzy, investors absorbed recent earnings reports from two major technology companies, part of the so-called “Magnificent Seven.” The market awaits an influential jobs report that could offer insights into the state of the U.S. economy. In after-hours trading, Apple saw its shares tumble by 4% after its fiscal second-quarter revenue from the Services division fell short of analysts’ expectations. The tech giant also indicated it anticipates an additional $900 million in costs this quarter due to tariffs. Similarly, Amazon’s stock dropped by 2% following its cautious guidance and discussion of “tariffs and trade policies” as concerning factors.
These movements came on the heels of a successful start to May for Wall Street, particularly buoyed by results from Meta Platforms and Microsoft, which invigorated interest in artificial intelligence investments. For the day, the Dow achieved a modest 0.2% gain, and the S&P 500 rose by 0.6%. Both indexes marked eight consecutive days of upward momentum, while the Nasdaq Composite surged by 1.5%, effectively erasing prior losses since early April when new tariffs were announced by President Donald Trump.
As earnings season continues, approximately two-thirds of S&P 500 constituents have reported results, with an impressive 76% exceeding analyst forecasts, according to new data. Adam Crisafulli, founder of Vital Knowledge, noted the significant impact of lower tariffs and robust Q1 earnings on the S&P 500’s rally, reflecting a cautiously optimistic market outlook.
Traders are gearing up for another significant data release on Friday, with April’s jobs report expected to provide further clues about employment trends in the U.S. Economists surveyed anticipate the addition of 133,000 new jobs last month, sharply down from 228,000 in March, while the unemployment rate is projected to remain steady at 4.2%.
This jobs report follows a week filled with a mix of economic indicators, including a GDP reading that revealed a 0.3% contraction at an annualized rate in the first quarter. Additionally, the private payroll figures from ADP showed disappointing performance, and the latest weekly jobless claims jumped to 241,000, significantly higher than forecasts.
Despite these mixed signals, all three major indices are on track for their second consecutive week of gains. The S&P 500 is poised for a weekly increase of 1.4%, while the Dow appears set for a 1.6% rise. The Nasdaq has climbed 1.9% week-to-date, suggesting a resilient market in light of various economic challenges. As Wall Street navigates these complexities, investor sentiment remains a crucial factor in the unfolding economic landscape.