Major Indexes Continue Upward Momentum on Strong Tech Earnings
As of midday Thursday, May 1, 2025, U.S. stock markets are showing significant gains, extending their recent winning streak. The S&P 500 has climbed 1% and is on track for its eighth consecutive positive session, which would mark its longest winning streak since August. The index currently trades around 5,625, about 8.5% below its record high set earlier this year.
The Dow Jones Industrial Average has added 248 points, or 0.6%, reaching approximately 40,917 by midday. This follows yesterday’s close at 40,669.36, when the blue-chip index completed its seventh straight day of gains – a feat not seen since July 2024.
Meanwhile, the tech-heavy Nasdaq Composite is outperforming other major indexes, surging 1.8% on the strength of big technology earnings reports.
Tech Giants Lead the Rally
Microsoft (MSFT) is today’s standout performer, jumping 9% after reporting fiscal third-quarter results that exceeded analyst expectations. The software giant cited strength in its cloud computing and artificial intelligence businesses, which drove overall revenue up 13% year-over-year.
Meta Platforms (META) has also impressed investors, climbing 5.3% following stronger-than-expected first-quarter revenue and profit. The company noted that its artificial intelligence tools have helped boost advertising revenue.
Investors are now eagerly awaiting earnings reports from Apple (AAPL) and Amazon (AMZN), both scheduled for release after today’s market close.
Notable Stock Movements
Beyond the tech giants, several other companies are making significant moves today:
– CVS Health (CVS) shares are higher after beating first-quarter earnings and revenue expectations, with analysts noting margin recovery and business diversification.
– Tesla (TSLA) shares are under pressure, down over 3% following reports that its board has opened a search for a chief executive to succeed Elon Musk.
– Eli Lilly (LLY) stock has slipped despite reporting an earnings beat and reaffirming its 2025 guidance.
Economic Data and Market Outlook
Today’s market gains come despite mixed economic signals. Initial jobless claims were higher than economists had forecast, raising concerns about labor market weakness. However, a separate report on the U.S. manufacturing sector came in better than expected, providing some reassurance about economic resilience.
Investors continue to monitor the impact of President Trump’s trade policies. April was a volatile month for markets following the April 2 announcement of “reciprocal” tariffs, which briefly sent the S&P 500 into bear market territory before it recovered.
Upcoming Market Events
Market participants are focused on several key events that could impact trading in the coming days:
– The crucial nonfarm payrolls report is scheduled for release tomorrow (Friday, May 2).
– Several major companies are reporting earnings today, including McDonald’s (MCD), Mastercard (MA), and Linde (LIN) who reported this morning, with Apple and Amazon set to report after the close.
– Traders continue to watch for developments in trade negotiations, particularly following recent comments from Commerce Secretary Howard Lutnick about a potential trade deal.
Market Sentiment
Despite recent volatility, market sentiment appears to be improving. UBS Global Wealth Management chief investment officer Solita Marcelli noted, “While market volatility may persist until more tariff certainty emerges, we think the sharpest Trump policy swings are likely behind us and that the outlook is becoming more constructive.”
The CBOE Volatility Index (VIX), often referred to as the “fear gauge,” has declined 3.08% to 23.94, suggesting decreasing market anxiety.
As markets navigate through earnings season and ongoing trade policy developments, investors appear cautiously optimistic that the worst of the recent volatility may be behind us.