Stocks surged on Thursday as strong earnings from major tech companies assuaged fears over the potential impact of economic challenges on AI advancements. The Dow Jones Industrial Average rose by 210 points, or 0.5%, while the S&P 500 increased by about 1%. The Nasdaq Composite saw a nearly 2% jump.
Investor concerns had been mounting over President Donald Trump’s tariffs and an economic slowdown potentially hindering AI developments. However, robust quarterly results from Meta Platforms and Microsoft alleviated some of these worries. Meta’s revenue exceeded expectations in the first quarter, with CEO Mark Zuckerberg expressing confidence during an earnings call. He stated that the company is “performing very well” and “well positioned to navigate the macroeconomic uncertainty.”
Microsoft also excelled, surpassing both top- and bottom-line expectations for the fiscal third quarter. Its Azure cloud business displayed significant strength, and the company’s guidance remained optimistic. Executives noted during the earnings call that capital expenditures are expected to increase as they expand data center capacity. They emphasized, “Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth.”
The market responded positively, with Microsoft shares rising 9% and Meta shares advancing about 6%. Other tech giants such as Nvidia experienced a 4% increase, helping the information technology sector lead the S&P 500 with a 3% rise.
“Few stocks are truly immune to Trump tariffs and trade war, but AI is a lot less impacted than investors currently believe,” said Jed Ellerbroek, a portfolio manager at Argent Capital Management. “We’re early in a very steep growth curve right now, and that goes for AI infrastructure.”
Despite the bullish market, a rise in weekly jobless claims to 241,000—higher than the anticipated 225,000—tempered enthusiasm. This increase amplified economic concerns following a weak first-quarter GDP report earlier in the week, raising stakes for the April nonfarm payrolls data expected on Friday.
Wednesday’s session had concluded a volatile April, with the S&P 500 and Dow Jones recovering from significant losses earlier in the day. At its lowest, the S&P 500 had dropped over 2%, and the Dow had shed more than 780 points. Initial market unease was driven by Commerce Department data revealing a GDP decline at an annualized rate of 0.3%, marking the first instance of negative growth since the first quarter of 2022. Economists had predicted a 0.4% gain, leading to initial investor hesitance. However, buying activity later in the session drove a rebound, lifting both the Dow and S&P 500 into positive territory.
The S&P 500 had faced turbulence in April, encountering a bear market momentarily after Trump’s tariff announcement on April 2. Despite the volatility, the index ended April about 9% below its record high. However, both the S&P 500 and the Dow concluded the month with slight losses of 0.8% and 3.2%, respectively, while the Nasdaq Composite gained 0.9%.
This latest market development underscores the resilience of the tech sector and the continuing allure of AI-driven growth, even amidst broader economic uncertainties.
Original Source: https://www.cnbc.com/2025/04/30/stock-market-today-live-updates.html
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Publish Date: 2025-05-01 21:36:00
