Major Indexes Extend Winning Streak Amid Positive Tech Earnings
The U.S. stock market continues its upward momentum on Friday, May 2, 2025, with major indexes building on their recent gains. The S&P 500 and Dow Jones Industrial Average are both riding eight-session winning streaks, while the Nasdaq Composite has recovered all losses since President Trump’s April 2 tariff announcement.
As of early Friday trading, futures pointed to a higher open, with S&P 500 futures rising 0.58%, Dow futures jumping 0.82% (333 points), and Nasdaq 100 futures advancing 0.35%. This positive sentiment follows Thursday’s session where the Dow added 0.21%, the S&P 500 gained 0.63%, and the Nasdaq surged 1.52%.
Tech Giants’ Earnings Drive Market Sentiment
The market rally has been primarily fueled by strong earnings reports from technology giants. Microsoft (MSFT) and Meta Platforms (META) delivered better-than-expected quarterly results on Wednesday, sending their shares soaring 8.6% and 4.8% respectively on Thursday.
However, after-hours trading on Thursday saw mixed reactions to earnings from other tech heavyweights. Apple (AAPL) reported fiscal Q2 earnings of $1.65 per share, beating estimates by 4 cents, on revenue of $95.36 billion. Despite iPhone sales growing 2% year-over-year, Apple shares fell approximately 4% in extended trading as the company warned of $900 million in additional costs in the current quarter due to tariffs.
Amazon (AMZN) also reported solid Q1 results with earnings of $1.59 per share, surpassing the $1.35 consensus, on revenue of $155.67 billion. However, the stock declined about 4% after hours as investors compared its AWS cloud business growth of 17% unfavorably to Microsoft’s Azure performance and reacted to lighter-than-anticipated Q2 operating income guidance.
China Trade Developments Boost Market Sentiment
Adding to the positive market sentiment, investors cheered China’s announcement that it is evaluating the possibility of starting trade negotiations with the U.S. This development has helped ease concerns about the ongoing trade tensions that have contributed to market volatility in recent months.
Despite the recent rally, the major indexes entered May having posted losses in three consecutive months amid uncertainty about tariff policies and their potential impact on the economy and global business operations.
Critical Jobs Report Awaited
Investors are now bracing for the April jobs report, scheduled for release Friday morning. Economists polled by Dow Jones anticipate payrolls grew by 133,000 last month, down significantly from the 228,000 added in March, with the unemployment rate expected to hold steady at 4.2%.
This jobs report follows concerning economic data earlier this week, including a GDP reading showing the economy contracted 0.3% at an annualized pace in the first quarter, weak private payrolls data from ADP, and weekly jobless claims that rose unexpectedly to 241,000.
Other Notable Market Movers
Beyond the tech giants, several other companies saw significant stock movements following earnings reports. Nvidia (NVDA), a prime beneficiary of the AI boom, rose 2.5% on Thursday as investors welcomed news that Microsoft and Meta plan to continue investing heavily in AI infrastructure.
Reddit (RDDT) shares surged 18% after hours following strong Q1 performance, with earnings of $0.13 per share far exceeding the $0.02 anticipated. Conversely, Block (XYZ) fell 12% after missing both top and bottom-line expectations and reducing guidance.
Looking Ahead
As the market heads into next week, investors will continue to monitor earnings reports and economic data for signs of how companies and the broader economy are navigating the uncertain trade environment. The Employment Situation report on Friday will likely set the tone for market sentiment in the coming days, while ongoing developments in U.S.-China trade relations remain a critical factor for market stability.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.