U.S. Stocks Rise on Tech Earnings, Despite Trade War Worries
U.S. stocks saw a boost on Thursday, with the Nasdaq leading the way. Microsoft and Meta’s strong earnings reports reassured investors. The Nasdaq Composite rose 1.52%, thanks to a 7.6% jump in Microsoft shares and a 4.2% increase in Meta.
Both tech giants reported better-than-expected quarterly profits. This eased fears that president Trump’s trade war with China could hurt AI, cloud, and ad revenues.The S&P 500 gained 0.63%,while the Dow Jones Industrial Average added 0.21%, extending its winning streak.
Despite positive market reactions, there were signs of economic slowdown. Weekly jobless claims hit a two-month high, and U.S.GDP contracted in Q1. This raised concerns about the labor market ahead of Friday’s jobs report.
Investors now await earnings from Apple and Amazon. Both face challenges from the White House’s trade policies. Amazon promised not to pass tariff costs to consumers, while Apple considers moving iPhone production out of China.
McDonald’s reported weaker consumer demand and tariff pressure, causing U.S. sales to drop and shares to fall 2%. On the geopolitical front, China hinted at restarting trade talks, but the U.S. insists China must act first. A new round of trade deals may be on the horizon, according to White House sources.
