The Nasdaq Composite surged on Thursday, fueled by robust earnings from Microsoft and Meta Platforms. The upbeat tech results helped offset investor concerns about trade tensions and economic softness, with Microsoft surpassing Apple to reclaim its position as the world’s most valuable company.
Tech Giants Drive Index Gains
Microsoft shares soared 8.8%—their highest since January—after the company projected stronger-than-expected growth for its Azure cloud division. The rally pushed Microsoft past Apple in market capitalization.
Meta rose 4.7%, reporting better-than-anticipated revenue driven by strong advertising performance. Nvidia added 3.8%, supporting broader tech sector gains.
The information technology and communication services sectors rose 2.6% and 1.2%, respectively, reflecting renewed investor confidence in high-growth industries.
Market Momentum Builds Despite Uncertainty
According to Art Hogan of B Riley Wealth, investor sentiment benefited from a late-day rally and better-than-feared earnings from two “Magnificent Seven” stocks. He noted the reports provided a “pretty good setup” to start the new month on a positive note, especially amid geopolitical and economic volatility.
The Nasdaq climbed 262.71 points (1.51%) to 17,709.06—returning to late March levels and nearing full recovery from losses triggered by reciprocal tariff announcements in early April. The S&P 500 rose 0.82%, and the Dow added 0.47%.
Mixed Earnings and Macroeconomic Signals
Amazon rose 2% ahead of its earnings release, while Apple fell 1% following a federal court ruling on App Store practices. Qualcomm dropped 7.6% after projecting revenue losses due to escalating trade tensions.
Outside the tech space, Eli Lilly declined 8.2% on weaker-than-expected earnings. McDonald’s fell 1.4% after posting a rare dip in global sales, while CVS Health jumped 7.7% on strong results. General Motors gained 1.2% after issuing a new 2025 profit forecast.
Labor and Manufacturing Data Reflect Softness
Weekly jobless claims exceeded expectations, signaling potential weakness in the labor market. Investors are closely watching upcoming nonfarm payroll data for confirmation.
Meanwhile, ISM’s manufacturing index came in at 48.7 for April—above consensus estimates but still indicating contraction. The data followed a report earlier this week that showed the U.S. economy contracted last quarter for the first time in three years.
Can Tech Earnings Sustain Market Optimism?
As tech earnings bolster short-term momentum, concerns persist over broader economic headwinds and trade policy disruptions. Will market strength continue—or are investors overlooking deeper risks?
