On May 1, U.S. stocks rebounded strongly as earnings reports from tech giants lifted the market, with tech giants Microsoft and Meta leading the charge.

Taiwan • Business • 05/01 15:03
On May 1, U.S. stocks rebounded strongly as earnings reports from tech giants lifted the market, with tech giants Microsoft and Meta leading the charge.

On May 1, 2025, U.S. stocks surged across the board as Microsoft and Meta's earnings reports exceeded expectations, with Microsoft's stock price soaring more than 9% intraday and Meta climbing over 6%. TSMC ADR and Nvidia shares also advanced, as the Philadelphia Semiconductor Index rose 1.44%. However, data from the U.S. Department of Labor showed that initial jobless claims unexpectedly rose to 241,000, indicating pressure in the labor market.

Key Updates

05/02 14:02

U.S. stocks rally across the board: Non-farm employment data beats expectations and easing tensions between the U.S. and China provide a boost, as the Dow Jones index surges more than 450 points.

On May 2, 2025, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite, the three major U.S. stock indices, rose, with the Dow climbing 488.04 points and the S&P 500 achieving its longest streak of consecutive gains in 20 years. The rally was due to better-than-expected April non-farm payroll data and indications of easing tensions between the U.S. and China over trade. Technology stocks and the semiconductor sector led the gains, with Taiwan Semiconductor Manufacturing Company (TSMC) American Depositary Receipts (ADR) rising 3.74%. Investor confidence rebounded, and riskier assets became more attractive.

05/02 11:04

On May 2, 2025, U.S. stock futures rose as Dow futures surpassed 41,100 points, reflecting the influence of corporate earnings reports and trade developments.

On the afternoon of May 2, 2025, U.S. stock index futures rose, with Dow Jones Industrial Average futures rising 254 points to 41,109, S&P 500 futures rising 29.5 points to 5,652.75, and Nasdaq 100 futures rising 60 points to 19,930.75. This rise reflects the market's response to corporate earnings and international trade developments, especially the strong earnings from Microsoft and Meta Platforms and progress in trade policies under the USMCA.

05/02 10:02

Signs of Easing in US-China Trade Tensions: Hong Kong's Hang Seng Index Up 1.74%, Tech Stocks Lead the Gains, The Renminbi and Risk Currencies Climb Together

On May 2, 2025, signs of easing in the trade tensions between the US and China prompted a recovery in global financial markets. The Chinese Ministry of Commerce is assessing the US's tariff negotiation proposals, resulting in the Hang Seng Index in Hong Kong rising by 385 points, or 1.74%, led by technology stocks. The offshore yuan appreciated by nearly 500 points against the US dollar, and the Australian and New Zealand dollars strengthened in tandem. The US dollar index fell by 0.2%, reflecting an increase in market risk appetite. Nevertheless, investors remain cautious about the global economic outlook, as recent economic data from both the US and China indicate a slowdown in growth.

05/02 00:31

On May 1, 2025, the U.S. stock market ended the day higher: Technology stocks led the rally, as earnings reports from Microsoft and Meta lifted the three major indexes.

On May 1, 2025, the U.S. stock market saw a broad increase as Microsoft and Meta Platforms reported better-than-expected earnings. The Dow Jones Industrial Average, the S&P 500 Index, and the Nasdaq Composite Index all closed higher, extending their rebound. Technology stocks stood out, with strong results from Microsoft and Meta easing worries about a slowdown in AI industry growth and lifting other tech stocks. Market sentiment was also lifted by a relaxation in trade tensions.

05/01 23:02

Microsoft and Meta's earnings reports beat expectations, lifting major U.S. stock indices on May 1, 2025.

On May 1, 2025, the U.S. stock market saw gains across the board as Microsoft and Meta reported better-than-expected earnings, easing concerns over AI investment returns and the economic outlook. The Dow Jones Industrial Average rose 83.60 points, the S&P 500 rose 35.08 points, the Nasdaq jumped 264.40 points, and the Philadelphia Semiconductor Index rose 17.58 points. The strong performance of Microsoft and Meta led the major stock indices to their eighth consecutive day of gains.

05/01 15:03

On May 1, U.S. stocks rebounded strongly as earnings reports from tech giants lifted the market, with tech giants Microsoft and Meta leading the charge.

On May 1, 2025, U.S. stocks surged across the board as Microsoft and Meta's earnings reports exceeded expectations, with Microsoft's stock price soaring more than 9% intraday and Meta climbing over 6%. TSMC ADR and Nvidia shares also advanced, as the Philadelphia Semiconductor Index rose 1.44%. However, data from the U.S. Department of Labor showed that initial jobless claims unexpectedly rose to 241,000, indicating pressure in the labor market.

05/01 07:02

NVIDIA Uncommonly Rated as Sell by Analyst Jay Goldberg: Slowdown in AI Spending and China-US Geopolitical Risks Pose Challenges

NVIDIA, a US-based AI chip company, was recently rated as a "sell" by Seaport Research analyst Jay Goldberg, a rare occurrence, marking the first time in nearly two years. Goldberg pointed out that AI spending may slow down in the coming years, increased geopolitical tensions between the US and China, and the technical complexity of NVIDIA's system deployments being higher than that of traditional data centers pose challenges to the company's prospects. He lowered NVIDIA's target stock price to $100, below the Wall Street average target price of $161.59, making Seaport Research the only institution with a pessimistic view on the stock.

05/01 06:31

The U.S. stock market dropped sharply due to the triple whammy of GDP contraction, employment slowdown, and inflation pressures.

On April 30, 2025, the U.S. stock market saw significant volatility due to a 0.3% contraction in first-quarter GDP, slowing job growth, and ongoing inflationary pressures. Major indices dropped sharply in the morning session but rebounded in the afternoon after news of U.S.-China trade talks. The energy, steel, and financial sectors were the biggest losers, highlighting worries about an economic slowdown. Even though the market recovered by the end of the day, April's overall performance was poor, with the S&P 500 and Dow Jones indices falling for three straight months.

05/01 06:00

Analyst Jay Goldberg: Advanced Micro Devices and Broadcom could become the new favorites in AI chip investments, while Nvidia is facing pressure on market share and valuation.

Seaport Research Partners analyst Jay Goldberg has rated NVIDIA as a "sell" with a target price of $100 amidst a booming AI chip market, noting that its valuation already aligns with market expectations and faces pressure from customers creating their own chips. On the other hand, he is optimistic about AMD and Broadcom, giving them "buy" ratings with target prices of $100 and $230, respectively, due to their strategic moves and strong execution in the AI and data center markets, potentially making them more attractive investments.

04/30 22:31

Microsoft's Third Quarter 2025 Financial Report Surpasses Expectations: Cloud Services Drive Revenue to Record Highs, Stock Price Jumps Over 6% in After-Hours Trading

On April 30, 2025, Microsoft announced its financial results for the third quarter of the fiscal year 2025, reporting revenue of $70.07 billion, an increase of 13% year-over-year, and a net profit of $25.8 billion, which is an 18% increase year-over-year, both figures exceeded expectations. The cloud and AI sectors experienced strong growth, with Azure's revenue growing by 33% year-over-year. Consequently, Microsoft's stock price increased by over 6% in after-hours trading.

Microsoft's Earnings Exceed Expectations, Stock Soars Over 9%

Microsoft (MSFT) announced its third-quarter earnings for the 2025 fiscal year after the market closed on April 30th, reporting revenue of 70.1 billion dollars, a 13% year-over-year increase, and earnings per share (EPS) of $3.46, both surpassing market expectations of 68.5 billion dollars and $3.21. Core Azure cloud service revenue grew 33% year-over-year, with AI-related services contributing 16 percentage points, indicating strong ongoing demand for AI.

Additionally, Microsoft forecasts next quarter's revenue to be between 73.15 billion and 74.25 billion dollars, exceeding analysts' expectations of 72.26 billion dollars. Azure cloud business is expected to grow 34% to 35% year-over-year, also above the market estimate of 31.5%. Following the release of this earnings report and forecast, Microsoft's stock surged 9.52% intraday on May 1st, making it one of the top-performing tech stocks in the U.S. market that day.

Meta's Revenue and Profit Exceed Expectations, Stock Rises Over 6%

Meta (META) also released its first-quarter earnings after the market closed on April 30th, reporting revenue of 42.31 billion dollars, a 16% year-over-year increase, surpassing market expectations of 41.4 billion dollars; earnings per share were $6.43, far exceeding the expected $5.28. Net income reached 16.64 billion dollars, a 35% year-over-year increase. Meta forecasts second-quarter revenue to be between 42.5 billion and 45.5 billion dollars, also above market consensus.

Meta CEO Mark Zuckerberg noted the company's strong performance despite economic uncertainties and raised its 2025 capital expenditure forecast to 64 billion to 72 billion dollars, reflecting continued investment in AI data centers and infrastructure. Encouraged by this, Meta's stock rose 6.06% intraday on May 1st.

TSMC ADR and Nvidia Rise in Tandem, SOX Index Climbs

Benefiting from the overall warming sentiment in tech stocks, TSMC ADR (TSM) rose 3.64% intraday on May 1st. As the world's largest semiconductor foundry, TSMC benefits from the continued expansion of AI chip demand, with the market keeping a close eye on its future business outlook.

AI chip leader Nvidia (NVDA) also benefited from Microsoft's and Meta's continued investment in AI infrastructure, with its stock rising 4.2% intraday. Analysts noted that the earnings reports of these two tech giants show no signs of slowing AI spending, further boosting market confidence in demand for Nvidia's products.

The Philadelphia Semiconductor Index (SOX) rose 1.44% on the day, reflecting the overall strength of the semiconductor sector.

Major U.S. Stock Indices Rise Across the Board, Tech Stocks Lead the Rebound

As of 9:50 AM Eastern Time on May 1st, the Dow Jones Industrial Average rose 233 points or 0.57%, to 40,905.17 points; the S&P 500 Index rose 57 points or 1.03%, to 5,623.23 points; and the Nasdaq Composite Index rose 348 points or 2%, to 17,772.55 points. The strong performance of tech stocks was the main driver of the market rebound.

U.S. Initial Jobless Claims Unexpectedly Rise

Despite strong stock market performance, the latest U.S. employment data shows signs of weakness in the labor market. According to data released by the U.S. Department of Labor on May 1st, initial jobless claims for the week ending April 26th were 241,000, an increase of 18,000 from the previous week, the highest level since February, and above market expectations of 225,000.

At the same time, continuing jobless claims also rose to 1,916,000, the highest since November 2021. Analysts pointed out that the increase in claims in New York State by more than 15,000 may be related to temporary school employees claiming benefits during spring break, but the overall data still indicates underlying pressure in the labor market.

Additionally, ADP earlier reported that private sector job growth in April was only 62,000, a nine-month low, further deepening market concerns about a slowdown in the job market.

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