4:07pm: Weekly gains
US stocks finished Friday’s session higher, extending a week of strong gains as investors responded positively to robust earnings reports and easing concerns over trade tensions.
The Nasdaq added 1.3% at 17,382 points, the S&P 500 was up 0.7% at 5,525 points, while the Dow Jones closed 20 points higher at 40,113 points.
3:25pm: Winning week
US equity markets are on track to end the week higher, buoyed by hopes of easing trade tensions between the US and China.
The S&P 500 is up 3.7% for the week, while the Nasdaq and Dow gained 5.4% and 2%, respectively.
Quasar Elizundia, Expert Research Strategist at Pepperstone attributed much of the rebound to “renewed optimism around a potential easing of trade tensions,” as investors reacted positively to signs of de-escalation.
"After weeks of heightened uncertainty, investors have responded positively to signs hinting at a possible de-escalation of the conflict," Elizundia commented.
"The market seems eager to believe that peak tension may be behind us, clinging to any indication of progress on the trade front."
Officials in Washington added to the upbeat mood, with Treasury Secretary Scott Bessent describing the current impasse as “unsustainable” and suggesting a “big deal” might be possible if China reciprocates. President Trump echoed that sentiment, hinting at significant tariff reductions and the potential for an agreement “in the coming weeks.”
However, Elizundia warned that “caution prevails,” noting the gap between diplomatic rhetoric and concrete policy moves. While China has maintained a firm public stance, some targeted tariff reductions—such as on semiconductors and medical supplies—have been interpreted as pragmatic signs of strategic flexibility.
2:45pm: Downward pressure
Wells Fargo economists downgraded their global growth forecast to 2.3% for 2025, citing the unexpectedly harsh “Liberation Day” tariffs and their impact on global trade. “New tariffs, particularly elevated tariffs on China, will apply downward pressure on global economic activity,” the analysts wrote, warning that risks to the forecast remain skewed to the downside.
The bank now expects Canada to fall into a technical recession this year and sees Mexico's economy contracting outright in 2025. China’s growth is also expected to slow to just over 4% due to both tariff impacts and broader structural issues.
On monetary policy, Wells Fargo anticipates more dovish stances from central banks in the G10, including the European Central Bank, Bank of Canada, and Bank of Japan. Emerging market policymakers may follow suit, aided by favorable FX conditions and weak growth.
Despite recent weakness, the U.S. dollar is expected to rebound in the near term, with sideways movement in late 2025 and a return to strength in 2026.
1:40pm: Friday's headlines
Apple Inc (NASDAQ:AAPL, ETR:APC) is planning to assemble all iPhones destined for the US market in India as early as next year, according to multiple reports citing sources close to the company.
Alphabet, the Google and YouTube owner blew past expectations on both revenue and profits, proving that, even with AI disruption and geopolitical headwinds, it still knows how to make money hand over fist.
Despite beating expectations for the first quarter, Intel forecast second-quarter revenue of $11.8 billion, falling short of analysts’ estimates and raising fresh concerns over macroeconomic uncertainty, tariff headwinds, and persistent margin pressure.
China has now announced it's considering easing tariffs on some US imports, following earlier comments from the Trump administration that the previously announced triple-digit tariffs could come down significantly.
12:28pm: Stocks split at midday
The S&P 500 is trying to stretch its rally to a fourth day, ticking up 0.3% by midday Friday. The Nasdaq is leading the charge, up 0.7%, thanks to a strong showing from big tech. Meanwhile, the Dow’s lagging a bit, down 0.2%.
Tech is doing the heavy lifting—Alphabet popped after posting strong AI-driven earnings, and Meta and Tesla are up about 1.5% each. On the flip side, Intel is weighing things down with a steep drop of around 7% after offering a cautious outlook for 2025, despite beating Q1 expectations.
Trade tensions are still bubbling, with mixed headlines around US-China tariffs keeping investors on edge.
Broadly speaking, the S&P 500 is still pacing for a solid 3.8% weekly gain. But under the surface, there’s some caution—10-year Treasury yields are sitting at 4.29%, and gold and oil are both in the red. Everyone’s now looking ahead to next week’s GDP, inflation, and jobs data to get a better read on where the Fed might head next with interest rates.
11:43am: Turbulent week
Stock markets experienced a turbulent week, beginning with a sharp selloff driven by concerns over former President Trump's trade policies and his criticism of the Federal Reserve.
The downturn sparked broader skepticism about US investments, weighing on equities, bonds, and the dollar. However, markets staged a strong comeback midweek, buoyed by easing trade tensions, strength in technology and AI-related stocks, and solid earnings reports from firms like Alphabet.
“Market sentiment shifted quickly, especially after Trump’s more conciliatory tone on trade and a rally in tech led by semiconductors and AI,” said George Pavel, General Manager at Naga.com Middle East.
Despite the rebound, volatility remained, as disappointing results from companies such as IBM and Fiserv reminded investors of the risks still present this earnings season. Economic uncertainty, including inflation concerns and a cautious Federal Reserve, continues to weigh on outlooks.
“Investors are navigating a market that remains deeply reactive to news flow,” Pavel added.
10:42am: Alphabet earnings impress
Alphabet shares climbed about 2.4% on Friday morning as investors cheered stronger-than-expected results that highlighted the resilience of its core Google Search business and ongoing momentum in cloud services.
The parent company of Google posted first-quarter revenue of $90.2 billion, up 12% from a year earlier and ahead of Wall Street’s estimate of $89.2 billion. Earnings per share came in at $2.81, well above consensus.
Analysts noted broad-based strength across advertising verticals, while YouTube ad revenue rose 10.3%, roughly in line with estimates.
Alphabet’s flagship Search unit delivered 10% year-over-year revenue growth in the March quarter, surpassing investor expectations of 8% and the Street’s consensus of 9%, according to UBS.
“Overall, there is not much to dislike in this report,” said XTB's Kathleen Brooks.
“But we do not expect it to give renewed hope about the future of the AI revolution. Instead, the market is likely to differentiate between Big Tech based on their individual earnings reports. For now, the market likes what it is hearing from Google.”
9:52am: Stocks wobble
US markets opened lower Friday, as investors took a cautious step back after a strong three-day rally.
All three major indexes dipped out of the gate: the Dow fell 187 points, or 0.5%, to 39,907; the S&P 500 lost 13 points, or 0.2%, to 5,471; and the Nasdaq edged down 23 points, or 0.1%, to 17,143.
After a stretch of record highs, markets appear to be catching their breath. Traders are digesting a mix of earnings reports and economic signals, trying to get a sense of whether this rally still has legs—or if it's time to prepare for a pullback.
Intel Corp (NASDAQ:INTC, ETR:INL) was one of the early drags on the market. The chipmaker’s stock tumbled 7.6% after it issued a weaker-than-expected forecast and warned of “elevated uncertainty across the industry,” even though it topped earnings estimates for the first quarter. That uncertainty is weighing on sentiment, especially in tech.
Meanwhile, a better-than-expected showing from Alphabet Inc (NASDAQ:GOOG) is helping keep broader losses in check. Shares of Google’s parent company jumped 3.1% after the tech giant posted a 50% jump in quarterly profit. With its massive weight in the S&P 500, Alphabet's move is providing a cushion for the broader index.
Patrick Munnelly of Tickmill Group noted that investors recently took a more optimistic view on the effects of Donald Trump’s trade agenda. Hopes that the former president might soften his stance on tariffs—and pressure the Fed to act more aggressively on rate cuts—have lifted sentiment in recent days.
But markets remain jittery. Trump’s unpredictable tariff stance is causing households and businesses alike to hesitate on spending and investment decisions, with conditions shifting sometimes by the hour.
Bond yields have eased on bets that the Fed may be forced to act if the labor market shows signs of softening, Munnelly noted.
All told, the week is ending the way it began: with plenty of uncertainty and a market still trying to find its footing.
8:00am: Index futures all in the red
US stock indices are heading for a weaker start to trading on Friday as the positive momentum from a more conciliatory approach to trade talks between the US and China fizzles out.
Ahead of the opening, Dow Jones futures were down 0.4% while those for the S&P 500 were down 0.1% and Nasdaq futures were 0.2% weaker.
The Nasdaq led gains on Thursday, climbing 2.7% to 17,166, the Dow Jones closed 1.2% up at 40,093, and the S&P 500 rose 2% to 5,485.
After the closing bell, Google owner Alphabet Inc (NASDAQ:GOOG) reported a strong first-quarter earnings beat. Its shares were up 5% in pre-market trading.
The company reported revenue of $90.2 billion, up 12% from the same quarter last year.
"Alphabet is facing an existential threat in terms of AI taking market share in ads and search but thus far there is no sign of wobbles yet in terms of search and ad businesses but we should consider caution over ad spending from Chinese names like Temu and Shein," said SAXO's Neil Wilson.
Contributing to Thursday's positive session, China has now announced it's considering easing tariffs on some US imports, following earlier comments from the Trump administration that the previously announced triple-digit tariffs could come down significantly.
Dovish comments from the Federal Reserve (Fed) also helped.
"In the US, a few Fed members have started to lower their guard," commented Swissquote Bank's Ipek Ozkardeskaya.
"(Governor) Christopher Waller said he would support rate cuts if jobs are affected, and Beth Hammack indicated that the next Fed cut could arrive as early as June if there’s clear evidence of a US economic downturn."