U.S. Stock Market Summary for Thursday, May 1, 2025

Major Indices

• S&P 500: +0.63% → 5,604.14
• Dow Jones Industrial Average: +0.21% → 40,752.96
• Nasdaq 100: +1.10% → 19,786.71
• Russell 2000: +0.60% → 1,975.86

Market Overview

U.S. stocks finished higher on Thursday, extending the rally as major indices posted their eighth consecutive day of gains. Investor sentiment improved significantly amid stellar quarterly results from leading tech firms Microsoft and Meta Platforms. These earnings helped ease concerns stemming from heightened tariff tensions and supported broader market optimism.

The S&P 500's continued ascent marked its longest winning streak since August 2023, while the Nasdaq 100 outperformed, fueled by renewed enthusiasm for artificial intelligence and digital advertising sectors. The potential relaxation of U.S. export restrictions to the UAE also lifted semiconductor stocks, with Nvidia gaining on speculative reports.

After the bell, Apple posted stronger-than-expected results on solid iPhone demand but noted an anticipated $900 million hit from tariffs. Conversely, Amazon disappointed with its Q2 operating income guidance, sending shares lower in after-hours trading.

Sector Highlights

The technology sector led gains, bolstered by Microsoft (+9%) and Meta Platforms (+6%), both of which surpassed Wall Street’s expectations. These results helped counter market fears that AI and cloud investments might suffer under the strain of U.S. trade policy. Nvidia shares also climbed on reports of eased export curbs, further propelling the tech rally.

Economic Snapshot

• Initial Jobless Claims rose to 241,000, significantly above the forecast of 225,000, suggesting potential weakness in the labor market amid trade tensions.
• ISM Manufacturing PMI came in at 47.9, a decline from March’s 49.0, indicating continued contraction but a less severe drop than expected.
• The U.S. economy shrank by 0.3% in Q1, driven largely by a spike in imports ahead of the tariff implementation, which dampened net exports and overall GDP.

Treasury yields moved higher following the ISM release, as investors scaled back expectations for imminent Fed rate cuts.

Expert Commentary

Frank Monkam of Buffalo Bayou Commodities observed, “Strong tech earnings and rising trade optimism have sparked a relief rally.”
Joe Gilbert of Integrity Asset Management added, “We’ve entered the ‘hope phase’ of a new trade policy cycle.”
Lamar Villere of Villere & Co. noted, “What stood out today was that earnings, not tariffs, took center stage.”

Government & Political Notes

Investor optimism grew on signs that the Trump administration may be softening its trade stance. White House NEC Director Kevin Hassett hinted at progress in tariff negotiations with Japan and India, suggesting an announcement could come soon. Meanwhile, the recently imposed 145% tariff on Chinese imports has raised economic risks, despite administration claims of boosting domestic industry.

Conclusion

Markets surged on May 1, 2025, with strong tech earnings offsetting trade-related worries. However, softening economic data—rising jobless claims and slowing manufacturing—signal potential challenges ahead. The market remains buoyed by investor hopes for diplomatic breakthroughs and continued corporate strength, but future direction will hinge on economic resilience and clarity in trade policy.