US Stocks Gain With Strong Tech Earnings In Focus: Markets Wrap

Technology companies are powering US stocks on Thursday after the latest batch of robust earnings, with major indexes close to erasing losses sparked by the tariff shock that rattled markets just weeks ago.

The S&P 500 and the Nasdaq 100 trimmed earlier gains but still remain more than 1% higher. Microsoft Corp. and Meta Platforms Inc. jumped on upbeat results. A report of the US weighing a potential easing of restrictions on Nvidia Corp.'s sales to the United Arab Emirates pushed shares higher. Treasury yields rose, with the 10-year rate around 4.23%. A dollar index climbed.   

Tech earnings are largely driving optimism in the markets along with expectations that trade deals will offer many countries a reprieve from the highest tariffs first unveiled April 2. National Economic Council Director Kevin Hassett saying the Trump administration is making progress in tariff talks — and that he expects news by the end of the day — also boosted sentiment. 

“So far we're seeing big tech companies deliver on earnings, which is reassuring, and it's this reassurance which is supporting equity market futures,” said Georgios Leontaris, chief investment officer for EMEA at HSBC Global Private Banking. “The other element of the story beyond earnings is obviously the ongoing debate as to whether we've seen peak tariff noise or not.”

Analysts will be watching Apple Inc. results due after the market close closely for any further detail on how the company, whose supply chain is reliant on China, Vietnam, and India, views the impact of tariffs. Earlier, weekly data showed jobless claims jumped to the highest level since February. US manufacturing activity shrank by the most since November. 

General Motors Co. cut its full-year profit outlook citing exposure to auto tariffs, among the biggest financial hits revealed by any company so far to the trade tumult. McDonald's Corp. shares fell after the burger chain's first quarter sales missed estimates. Qualcomm Inc. shares dropped after the company gave a tepid forecast, citing concerns over tariffs hurting demand for its products.

Despite some lackluster earnings, sentiment remained upbeat after a report that the US has been pro-actively reaching out to China through various channels. At the same time, US President Donald Trump remained defiant, saying Wednesday he would not rush deals to appease nervous investors and that market volatility has “nothing to do with tariffs.”

Most markets in Europe and many in Asia are shut for holidays.  

The yen fell after the Bank of Japan said it will take longer than it previously thought to hit the inflation target.

In commodities, brent crude erased losses as US equity markets strengthened. Gold fell for a third day on signs of potential trade-talk progress between the US and several other nations, quelling demand for havens.

The US and Ukraine reached a deal over access to the country's natural resources, offering a measure of assurance to officials in Kyiv who had feared Trump would pull back his support in peace talks with Russia.

Some of the main moves in markets:

Stocks

• The S&P 500 rose 1.1% as of 11:54 a.m. New York time

• The Nasdaq 100 rose 1.7%

• The Dow Jones Industrial Average rose 0.7%

• The Stoxx Europe 600 was little changed

• The MSCI World Index rose 0.6%

Currencies

• The Bloomberg Dollar Spot Index rose 0.6%

• The euro fell 0.5% to $1.1267

• The British pound fell 0.5% to $1.3266

• The Japanese yen fell 1.8% to 145.62 per dollar

Cryptocurrencies

• Bitcoin rose 2.6% to $96,995.51

• Ether rose 3.3% to $1,853.46

Bonds

• The yield on 10-year Treasuries advanced seven basis points to 4.23%

• Germany's 10-year yield declined five basis points to 2.44%

• Britain's 10-year yield advanced five basis points to 4.49%

Commodities

• West Texas Intermediate crude rose 0.5% to $58.48 a barrel

• Spot gold fell 2.3% to $3,213.88 an ounce