U.S. stocks have risen for three straight days: Corporate earnings have exceeded expectations, diminishing concerns over U.S.-China trade tensions

Taiwan • Business • 04/25 01:01
U.S. stocks have risen for three straight days: Corporate earnings have exceeded expectations, diminishing concerns over U.S.-China trade tensions

On April 24, 2025, the U.S. stock market increased for the third straight day, with technology stocks leading the way. Despite the lack of progress in U.S.-China trade talks and persistent tariff uncertainties, corporate earnings surpassed expectations, fueling investor optimism. The S&P 500 and Nasdaq indices climbed 2% and 2.74%, respectively, and the Dow Jones index jumped nearly 500 points. The market temporarily set aside trade war worries amid robust corporate profits and expectations of potential Federal Reserve monetary policy easing.

Key Updates

04/25 15:04

New York Stock Exchange Trader Tuchman: Using Technical Analysis to Stabilize Market Operations Amidst Turbulent White House Policies

Peter Tuchman, a senior trader at the New York Stock Exchange, has profited amidst the White House's policy chaos by using technical analysis and short-term trading strategies. He criticized the White House's unpredictable policies as "economic terrorism" and advised traders to scale down their positions, set stop-loss orders, and use technical indicators such as the Advance-Decline Indicator, RSI, and EMA to navigate market volatility. Tuchman emphasized the importance of risk management and suggested that long-term investors should hold off and buy on dips.

04/25 15:04

Disagreements in US-China trade talks are causing market uncertainty, resulting in early volatility in US stocks, and tech stocks showing mixed results.

On April 25, 2025, there was a discrepancy in the US-China trade negotiations. President Donald Trump claimed that talks had begun, while Chinese officials denied it, resulting in cautious market sentiment. In early trading, US stocks fell, with the Dow Jones Industrial Average dropping 204 points and the Philadelphia Semiconductor Index down 0.5%. TSMC ADRs fell 0.9%, Nvidia rose 1.3%, Alphabet increased 2.9% on strong earnings, and Intel dropped 8.2% on poor financial forecasts.

04/25 10:31

The Chinese Ministry of Commerce's statement called for the United States to remove tariffs, leading to significant fluctuations in the US stock and crypto markets.

On April 24, 2025, Spokesperson He Yadong of China's Ministry of Commerce announced that there are no ongoing trade negotiations between China and the United States, demanding that the U.S. cancel all unilaterally imposed tariffs. This statement contradicts the conciliatory signals sent by U.S. President Trump, causing declines in the U.S. stock, bond, and cryptocurrency markets, reflecting concerns in the market about global economic uncertainty.

04/25 03:04

Strong Rebound in U.S. Stocks: Trump's Put Option Signal and Shift in U.S.-China Trade Rhetoric Drive Tech Stocks Up

On April 24, 2025, the U.S. stock market surged across the board, with the four major indices hitting recent highs, led by technology stocks. The market was buoyed by the "Trump put" concept, a financial market belief that Trump would step in to stabilize the market during times of volatility. The White House adopted a more conciliatory tone regarding U.S.-China trade negotiations, despite China's denial that negotiations are ongoing. The stock prices of AI chip leader Nvidia and other tech giants rose. Trump denied not having discussed tariffs with China, emphasizing that there has been contact between the two sides.

04/25 02:34

U.S. stocks have rallied for three straight days: Dow Jones breaks through 40,000 points, PHLX Semiconductor Index soars 5.63%, TSMC's ADR jumps 4.04%

The U.S. stock market has risen for three consecutive days, as the Dow Jones index surged 486.83 points on April 24, closing at 40,093.40, breaking the 40,000-point mark for the first time. Technology stocks led the gains, as the Philadelphia Semiconductor Index soared 5.63% and TSMC ADR rose 4.04%. The market was influenced by mixed signals from Federal Reserve officials about rate cuts, along with Trump's calls for rate cuts and his announcement of new tariff measures. Trump claimed to have held talks with China, but China denied that trade negotiations had begun, leaving the trade outlook uncertain.

04/25 01:01

U.S. stocks have risen for three straight days: Corporate earnings have exceeded expectations, diminishing concerns over U.S.-China trade tensions

On April 24, 2025, the U.S. stock market increased for the third straight day, with technology stocks leading the way. Despite the lack of progress in U.S.-China trade talks and persistent tariff uncertainties, corporate earnings surpassed expectations, fueling investor optimism. The S&P 500 and Nasdaq indices climbed 2% and 2.74%, respectively, and the Dow Jones index jumped nearly 500 points. The market temporarily set aside trade war worries amid robust corporate profits and expectations of potential Federal Reserve monetary policy easing.

04/24 22:00

US stocks have closed higher for three consecutive days: all four major indices increased by over 1%, with the Dow Jones breaking through 40,000 points.

On April 24, 2025, the U.S. stock market increased for the third straight day, with all four major indices rising by more than 1%. The Dow Jones Industrial Average broke through 40,000 points, while the S&P 500 and Nasdaq indices increased by 2.03% and 2.74%, respectively. The Philadelphia Semiconductor Index jumped 5.63%. Technology and semiconductor stocks led the gains, with companies such as NVIDIA and Amazon performing strongly. Despite varied corporate earnings reports and sluggish trade negotiations, investors remained optimistic as funds flowed into the technology sector, pushing the market higher.

04/24 18:01

2025 Outlook for Mainland Chinese Stock Funds: Policy Backing and Economic Robustness, AI and High-End Consumer Sectors Take Center Stage

Since 2025, despite the pressures of trade wars and economic slowdown in the global market, China's A-share market has shown resilience, with the Shanghai Composite Index having decreased by only 1.6% as of April 23. Fund managers and foreign institutions point out that policy support, a robust economy, industrial innovation, and valuation advantages provide support for the market. The AI and high-end consumer sectors have become focal points, and the inflow of foreign capital indicates that international investors are reassessing Chinese assets. In the face of high volatility, it is recommended to invest regularly through a systematic investment plan and pay attention to the impact of US-China trade policies and China's reform progress.

04/24 18:01

Federal Reserve officials suggest a rate cut in June, U.S. stocks rose in early trading, with tech stocks leading the gains.

On April 24, 2025, Federal Reserve Governor Christopher Waller and Cleveland Federal Reserve Bank President Beth Hammack hinted at a possible rate cut in June, boosting early gains in U.S. stocks. The Dow Jones Industrial Average rose 0.61%, the S&P 500 rose 1.3%, the Nasdaq rose 1.81%, and the Philadelphia Semiconductor Index rose 4.27%. Technology stocks led the gains, with TSMC's ADR rising 2.6%, Tesla up 5.37%, and Nvidia rose 2.81%. Expectations for a rate cut intensified in the market, with the 10-year U.S. Treasury yield dropping to 4.325%.

04/24 13:31

CNBC host Jim Cramer breaks down the 10 key events in the stock market in the US on April 24, 2023.

On April 24, 2025, CNBC's "Mad Money" host Jim Cramer highlighted the top ten events in the U.S. stock market for that day, ranging from earnings reports of pharmaceutical giants to those of tech leaders, industry trends, and policy impacts, highlighting the market's sensitivity to tariff policies, corporate earnings, and macroeconomic uncertainties. The events included stalled U.S.-China trade negotiations, Bristol Myers Squibb's strong earnings but setbacks in drug trials, Merck's downward revision of its financial forecasts, ServiceNow's outstanding performance, and IBM's undervalued earnings report.

Tech Stocks Lead, Major Indices Rise

U.S. stocks closed higher again on Thursday, with the Dow Jones Industrial Average rising 486.83 points, or 1.2%, to close at 40,093.40 points; the S&P 500 Index rose 108.91 points, or 2%, to close at 5,484.77 points; and the Nasdaq Composite Index surged 457.99 points, or 2.74%, to close at 17,166.04 points. This marks the third consecutive trading day of gains for the three major indices, with cumulative increases of over 5%, 6%, and 8%, respectively.

Tech stocks have been the driving force behind this rebound. The Philadelphia Semiconductor Index surged 5.6%, with TSMC ADR and NVIDIA rising 4% and 3.6%, respectively. Alphabet (Google's parent company) announced better-than-expected earnings after the market closed, further boosting market confidence. AI software company ServiceNow saw its stock price soar 15.5% due to earnings exceeding expectations.

Strong Earnings Season, Corporate Profits Bolster Market

According to data from the London Stock Exchange Group (LSEG), 157 S&P 500 component companies have reported earnings so far, with 74% exceeding market expectations. Analysts now estimate an overall corporate profit growth rate of 8.9% year-over-year, higher than the 8.0% forecast in early April.

Some companies like ServiceNow and Hasbro saw significant stock price increases due to strong performance in AI and gaming businesses. Conversely, companies like Procter & Gamble (P&G), PepsiCo, and American Airlines revised their financial forecasts downward due to weak consumer spending and tariff uncertainties, with stock prices falling 3.7%, 4.9%, and over 2%, respectively.

Despite mixed earnings performance, overall corporate profit resilience has become a key factor supporting the stock market. Market strategists point out that investors are focusing on corporate fundamentals, temporarily ignoring policy and geopolitical uncertainties.

Tariff Policy Uncertainty, Market Reacts Cautiously

Despite the stock market's rise, concerns about tariff policy remain unresolved. U.S. President Trump recently stated that trade negotiations with China are ongoing, but China's Ministry of Foreign Affairs denied any consultations between the two sides. U.S. Treasury Secretary Bessent mentioned that the U.S. has no intention of unilaterally reducing tariffs and emphasized that a comprehensive agreement may take two to three years.

Murphy & Sylvest market strategist Paul Nolte noted that the rise in chip stocks is partly due to "easing tariff rhetoric," as the chip industry has long been a focal point of the U.S.-China trade dispute. STMicroelectronics also stated that while no panic reactions from customers have been observed, escalating trade tensions could impact the automotive industry.

Additionally, Deutsche Bank's strategy team lowered the year-end target for the S&P 500 to 6,150 points and reduced the 2025 corporate earnings per share estimate from $282 to $240, citing the potential impact of tariffs not yet fully reflected.

Economic Data Shows Resilience, Market Sentiment Improves

Recent U.S. economic data shows March durable goods orders jumped 9.2% month-over-month, far exceeding the expected 2.1%; initial jobless claims were 222,000, in line with market expectations. These data indicate that the U.S. economy remains resilient, further supporting market sentiment.

The VIX index, a gauge of market fear, dropped nearly 2 points to 26.47, the lowest level this month. Expectations for the Federal Reserve to potentially cut interest rates earlier have also increased. Federal Reserve official Beth Hammack stated that if supported by data, interest rates could be adjusted as early as June.

Investors Focus on Corporate Fundamentals, Short-term Sentiment Stabilizes

Despite significant uncertainty in trade policy, investors are currently focusing on corporate earnings and economic data. The strong performance of tech stocks and profit growth of AI-related companies are the main drivers of the market rebound.

Market watchers note that despite little progress in U.S.-China trade talks, the stability of corporate profits and the Federal Reserve's policy flexibility provide short-term support for the market. The market will continue to closely monitor policy developments and changes in corporate financial forecasts in the future.

References

People Also Ask...

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