4:06pm: Microsoft, Meta drive Nasdaq higher
Wall Street had a strong day Thursday, with the Nasdaq leading the charge. The tech-heavy index jumped 1.5%, closing at 17,711, thanks to a rally in tech stocks. The S&P 500 wasn’t far behind, rising 0.6% to end at 5,604, while the Dow added 83 points—up 0.2%—to finish at 40,753.
Even small-cap stocks got in on the action, with the Russell 2000 gaining 1.2% to close at 1,988.
The gains were broad-based, but tech and growth stocks stood out. Investors seemed encouraged by upbeat earnings and growing optimism about the economy. The Nasdaq’s strong performance reflected renewed excitement around tech, which has been a major force behind the market’s momentum this year.
So far, more than 70% of S&P 500 companies have beaten first-quarter estimates—another sign that the tech sector’s strength is still very much in play.
Coming up after the bell, Apple and Amazon top a slew of earnings from S&P 500 companies.
3:25pm: Stocks on the move
- Nvidia shares surged over 5% as Microsoft and Meta reaffirmed major AI investment plans, lifting sentiment across chipmakers.
- Ocean Power Technologies shipped a Merrows-capable PowerBuoy for defense applications, marking a milestone in its partnership with a global defense firm.
- McDonald’s shares dropped after reporting a 3.6% decline in U.S. same-store sales, the worst since the pandemic.
- Qualcomm shares fell nearly 8% on weak guidance, overshadowing better-than-expected Q2 earnings.
- Eli Lilly shares slid after cutting its 2025 profit forecast, despite surging sales of its GLP-1 weight-loss drugs.
2:45pm: April jobs preview
US job growth likely slowed in April as employers turned more cautious amid trade tensions and economic uncertainty, with forecasts ranging from a modest 115,000 to 165,000 jobs added.
Comerica expects the unemployment rate to rise slightly to 4.3%, citing slower foot traffic in retail and restaurants and a dip in workweek hours. “Employers scaled back hiring this month,” said Comerica’s chief economist Bill Adams, pointing to an increase in jobless claims and the murky outlook created by tariffs.
Bank of America, while projecting a stronger 165,000 job gain, also flagged downside risks from immigration and trade policy in the months ahead. Deutsche Bank forecast a 125,000 increase, attributing the pullback to seasonal payback after March’s strong hiring.
Despite the slowdown, average hourly earnings are expected to rise 0.3%, and unemployment is likely to hold near 4.2%. All eyes are on Friday’s jobs report, which economists say could carry outsized weight for shaping expectations around the Federal Reserve’s next move.
1:47pm: Softening economy
Bill Adams, chief economist at Comerica, said a string of recent economic data suggests the US economy softened this spring, weighed down by tariff uncertainty and more cautious business sentiment. Indicators including weaker manufacturing activity, a rise in jobless claims, and a drop in construction spending all point to a slowdown.
“The economic data flow has been weaker in the last few weeks, reflecting more cautious business decision-making amid tariff uncertainty,” Adams said.
He expects Friday’s April jobs report to show “a lackluster” 115,000 job gain and for the unemployment rate to rise to 4.3% from 4.2%. Adams also noted signs that employers are turning more cautious on hiring, even without major layoff announcements, as they navigate the evolving landscape of trade policy.
12:30pm: Investors cheer Big Tech earnings
US stocks are on a strong run at midday, lifted by upbeat tech earnings and a cooling of trade policy worries.
The Nasdaq is leading the charge, jumping nearly 2%, while the S&P 500 is up about 1% and the Dow up 0.5%.
Investors are cheering better-than-expected results from Microsoft and Meta Platforms, which both reported strong revenue growth and gave optimistic guidance — helping boost confidence across the broader tech sector.
Microsoft shares have surged almost 9%, and Meta is up 6%, sparking gains in related software, cloud, and AI stocks.
Adding to the market’s positive tone, there's some relief that the Trump administration may be softening its stance on tariffs, easing US-China trade tensions for now.
Looking ahead, traders are gearing up for earnings from Apple and Amazon after the bell, as well as Friday’s jobs report, which could shape the next market move.
12:03pm: Microsoft, Meta deliver strong earnings
Some reaction to Microsoft and Meta's positive earnings reports last night:
"We see Meta as relatively well positioned in a soft macro with multiple usage drivers and an Al-driven platform that is driving improved ad performance vs peers," Bank of America analysts wrote. "Moreover, with big investments, Meta has potential for self-help levers to optimize for EPS in the case of a prolonged slowdown."
And of Microsoft, UBS had this to say: "The big surprise was in Azure, an unexpected reversal after three straight disappointing quarters. While the AI lift to Azure was strong, Microsoft pinned the upside on the core or non-AI performance, which accelerated slightly despite the macro and an ongoing downstream SMB/channel turnaround."
The results, following SAP and ServiceNow last week, suggest macro and tariff pressures on the software sector are limited—boosting overall confidence, UBS analysts added. Microsoft's Azure growth should lift sentiment for Amazon, Snowflake, and Datadog, while its AI infrastructure expansion is a positive signal for Oracle and GPU cloud providers.
11:15am: Production slumps
US manufacturing activity declined for the third straight month in April, with the ISM Manufacturing Index falling to 48.7, signaling continued contraction.
Production dropped sharply to 44, the lowest since May 2020, as tariff-induced uncertainty weighed on the sector.
While new orders and supplier deliveries improved slightly, most components pointed to ongoing weakness. The employment index rose to 46.5 but remained in contraction territory, consistent with layoffs in manufacturing.
Price pressures intensified, with the prices paid index rising to 69.8, suggesting manufacturers are facing growing cost burdens as firms pull forward demand amid tariff concerns.
Inventories also remained in expansion, adding further strain to supply chains.
“Tariff-induced uncertainty continues to weigh heavily on the sector,” Wells Fargo economists noted, highlighting risks to both costs and employment.
10:45am: Big Tech's resilience
The current earnings season is highlighting Big Tech's resilience amid strong AI demand, while automakers like General Motors struggle under the weight of trade-related risks.
"US equity market futures received a boost from Microsoft and Meta’s earnings that were released late on Wednesday night," Brooks said, noting that both companies beat expectations and surged in pre-market trading—Microsoft by more than 9%, and Meta by 6%.
Brooks emphasized that Microsoft’s rally could mark a significant moment: “If this is maintained on Thursday, then it suggests that Microsoft’s Q1 earnings report has been the most important for the company for years.”
In contrast, she pointed to GM’s $5 billion downward revision in earnings guidance as an example of how tariffs are directly impacting traditional manufacturers.
Brooks concluded that Q1 results are "telling us who is more or less exposed to tariffs," a key theme that’s now shaping investor sentiment.
9.53am: Microsoft and Meta lead opening charge
US stocks have charged higher in opening trades, led by big gains for Microsoft and Meta on the back of their earnings last night.
The Nasdaq advanced around 300 points or 1.7% to 17,749 in early trading, with the S&P 500 rising 1% and the Dow Jones 0.5%.
Microsoft jumped 9.1% (adding almost $300 billion to its valuation to take it back over $3 trillion again) and Meta Platforms 6.3%.
Other risers include Constellation Energy, up around 4%, Nvidia 3%, Amazon 2.9% and bitcoin investor MicroStrategy at roughly 2%.
7.55am: Tech stocks to drive Nasdaq and S&P higher
Technology stocks are anticipated to lead a Wall Street rally to start the month of May on Thursday, following earnings from Microsoft and Meta Platforms overnight and ahead of more from Apple and Amazon after the close.
Futures markets are calling the Nasdaq 100 around 1.7% higher, ahead of the opening bell, with S&P 500 futures up 1.2% and those for the Dow Jones rising 0.8%.
The day before, a bumpy April was wrapped up with a charge higher into the close, repairing some of the early damage in the session, with the Dow finishing 0.4% higher to mark its longest winning streak of the year, while the S&P inched up 0.2%, but the Nasdaq ended still 0.1% in the red and the Russell 2000 small-cap index dropped 0.5%.
Investors were weighing a weaker-than-expected GDP report, hopes of trade talks between the US and China, and PCE inflation edging down to an annual rate of 2.3%.
Overnight, both Microsoft and Meta posted stronger-than-expected earnings, which is boosting the mood for the Nasdaq in particular this morning.
Microsoft’s cloud revenue grew by a third in the past quarter and capital investment was down for the first time in a while.
Meta however raised its full-year spending plans to $64-72 billion from $60-65 billion.
"That’s exactly what AI investors wanted to hear," says Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Meta shares are up 6.1% in premarket trading and Microsoft is up over 9%.
Apple and Amazon report after the bell today and will need to convince investors they can also weather US tariffs, says Ozkardeskaya.
"Apple has already announced plans to move some production from China to India and to the US. Trump backed off his plan to tax smartphones, after warnings that US-made iPhones could cost up to $3000.
"Still, Apple remains one of the most tariff-exposed Big Tech names, given its complex global supply chain and lagging AI progress," she adds.
Apple shares are down 1.5% premarket after a US federal judge ruled that the company violated a court order that required the iPhone maker to allow greater competition for app downloads and payment methods in its App Store. A similar tussle has been going on with the EU.
Amazon is also highly exposed to tariffs and will likely see its e-commerce revenue pressured by trade issues.
Morgan Stanley analysts estimate that 18% of products on Amazon are imported from China, and around 60% of third-party sellers have ‘some China exposure’ that could impact ad spend.
Telsa shares are modestly positive after the company responded to a WSJ story that the board had contacted recruitment firms to initiate a CEO search at the company.
Chair Robyn Denholm issued a statement saying, "This is absolutely false (and this was communicated to the media before the report was published). The CEO of Tesla is Elon Musk and the board is highly confident in his ability to continue executing on the exciting growth plan ahead."