Stock Market Overview
- Wall Street: Major stock indexes surged on Thursday, driven by strong gains in technology shares as investors awaited further developments in the U.S.-China trade conflict.
- S&P 500: Rose 2.03%, closing at 5,484.77.
- Dow Jones Industrial Average: Gained 1.23%, ending at 40,093.40.
- Nasdaq Composite: Jumped 2.74%, closing at 17,166.04.
- Global Stocks: MSCI global index increased by 1.44%, and the pan-European STOXX 600 closed up by 0.36%.
- Japan’s Nikkei: Rose 0.5%.
Sector Performance
- Winners:
- Technology: The S&P 500 technology sector jumped 3.5%, driven by strong earnings reports, including Alphabet’s better-than-expected Q1 results.
- Defense: Stocks like Lockheed Martin gained amid growing geopolitical tensions and expectations of increased defense spending.
- Losers:
- Consumer Discretionary: Tesla fell 3.5% after reporting disappointing Q1 vehicle deliveries.
- Healthcare: Humana Inc. dropped 11.8% after warning of lower Medicare Advantage enrollments.
U.S.-China Trade Developments
- President Trump’s Remarks: Trump confirmed that trade talks between the U.S. and China are ongoing, pushing back against claims that no discussions are taking place.
- China’s Response: Beijing called for the removal of unilateral tariffs by the U.S. if it wants to resolve the trade issue.
- Market Impact: Trade tensions continue to create volatility in the markets.
Economic Data
- Unemployment Benefits: The number of Americans filing new applications for unemployment benefits rose slightly, indicating resilience in the U.S. labor market.
- Treasury Yields: U.S. 10-year Treasury yields fell to 4.309%, reflecting hopes for lower tariffs and a potential interest rate cut.
- Interest Rate Outlook: The Federal Reserve is considering a rate cut in June, depending on economic data.
Commodity Market
- Gold: Gold prices gained 1.4%, closing at $3,333.90 per ounce.
- Oil: Brent crude rose 0.7%, ending at $66.55 per barrel. U.S. West Texas Intermediate crude rose 0.8%, closing at $62.79.
Currency Market
- Dollar: The dollar weakened against major currencies, falling 0.58% against the Japanese yen and up 0.63% against the euro.
- Tariff Impact: The dollar’s fluctuations are largely driven by ongoing tariff issues between the U.S. and China.
Market Sentiment
- Volatility: Market volatility continues due to trade uncertainties and fluctuating economic data.
- Investor Focus: Investors are focused on the ongoing trade talks and economic data, with expectations for further market movements based on the non-farm payrolls report and the Federal Reserve’s monetary policy.