Market Rally Continues: S&P 500 and Dow Futures Rise on Tech Earnings Beats

Stock Market Today: Indexes Rebound After Volatile Trading Session

The stock market is showing strong signs of recovery on Thursday, May 1, 2025, with futures pointing to a higher open following better-than-expected earnings from tech giants. As of early morning trading, futures tied to the Dow Jones Industrial Average climbed 219 points (0.54%), S&P 500 futures jumped 1.02%, and Nasdaq 100 futures gained 1.43%.

This positive momentum follows Wednesday’s volatile session where the major indexes staged a remarkable comeback. The Dow Jones Industrial Average recovered nearly 1,000 points from its intraday low to end with gains of nearly 150 points in regular trading. Similarly, the S&P 500 rebounded from earlier losses, coming back from being down more than 2% during the session.

The market’s initial selloff on Wednesday was triggered by concerning economic data showing that U.S. gross domestic product fell at an annualized pace of 0.3% in the first quarter of 2025, marking the first quarter of negative growth since Q1 of 2022. This contraction raised fears about the impact of recent trade policies and tariffs on the broader economy.

Tech Earnings Power Market Optimism

Big Tech earnings are driving much of today’s positive sentiment. Meta Platforms (META) advanced more than 5% in extended trading after reporting stronger-than-expected revenue in the first quarter. Meanwhile, Microsoft (MSFT) jumped nearly 7%, powered by top- and bottom-line beats in its fiscal third quarter, as well as strong results from its Azure cloud business and upbeat guidance.

Investors are now eagerly awaiting results from several major companies reporting today:

1. Apple (AAPL) will announce results for its second quarter after market close. The company faces headwinds from tariffs and mounting competition from China, with analysts expecting Apple’s supply chain to dominate the earnings call.

2. Amazon (AMZN) reports first-quarter earnings after the closing bell. Analysts predict Amazon will bring in about $155.1 billion in revenue, up 8% from last year, with profits of $1.36 per share. Key focus areas include AWS cloud growth, AI spending trends, and potential tariff impacts.

3. Other notable companies reporting today include Eli Lilly (LLY), Mastercard (MA), McDonald’s (MCD), and CVS Health (CVS).

Tesla Stock Drops Amid CEO Succession Controversy

In significant corporate news, Tesla (TSLA) shares fell more than 3% in overnight trading following a Wall Street Journal report that the company’s board had initiated a search for a new chief executive to succeed Elon Musk.

However, Tesla Chair Robyn Denholm has firmly denied the report, calling it “absolutely false” and stating that the board is “highly confident in [Musk’s] ability to continue executing on the exciting growth plan ahead.”

The controversy comes amid a challenging period for Tesla, with the company recently reporting a 71% drop in profits for the first quarter of 2025. Musk has faced criticism for dividing his time between Tesla and his role in the Trump administration’s Department of Government Efficiency (DOGE), though he recently announced he would be “allocating far more of [his] time to Tesla” starting this month.

Global Markets and Economic Indicators

Asian markets traded mixed on Thursday, with Japan’s Nikkei 225 rising 0.92% after the Bank of Japan kept interest rates unchanged at 0.5%. Several Asia-Pacific markets, including South Korea, Hong Kong, China, and India, were closed for the Labor Day holiday.

In the currency markets, the Japanese yen fell against the dollar following the Bank of Japan’s decision to maintain current rates and push back the expected timing of its price target amid heightened uncertainty from U.S. tariffs.

Oil prices remained relatively stable after experiencing the biggest monthly drop since 2021, with Brent trading near $61 a barrel. Concerns persist about Saudi Arabia potentially steering OPEC+ to another supply surge next week, coupled with worries that the ongoing trade war could hurt energy demand.

Looking Ahead: Key Market Events

Investors are awaiting several important economic indicators in the coming days. Today brings weekly jobless claims data and a reading on the U.S. manufacturing sector, while the crucial nonfarm payrolls report is scheduled for release on Friday.

Market analysts suggest that while volatility may persist until more tariff certainty emerges, the sharpest policy swings are likely behind us, and the outlook is becoming more constructive.

For investors wondering why the market is up today, the primary drivers appear to be strong tech earnings, particularly from Microsoft and Meta, along with growing optimism that the economy can weather recent challenges. As we move further into May, market participants will be closely monitoring upcoming earnings reports from other tech giants, including Nvidia (NVDA) and Snowflake (SNOW) later this month.

With the S&P 500 currently about 9% off its February record close, investors are weighing whether this represents a buying opportunity or if more volatility lies ahead as trade policies and economic indicators continue to evolve.