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

Taiwan • Business • 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.

Key Updates

05/02 20:31

US stocks make a strong comeback: The S&P 500 index recovers losses incurred since Trump's tariff policy, marking a record streak of consecutive gains.

On May 2, 2025, the U.S. stock market rebounded, with the S&P 500 index recovering the losses since President Trump announced a large-scale tariff policy on April 2, and marking the longest streak of consecutive gains since 2004. The market recovery was driven by stabilizing economic data, labor market resilience, and positive developments in U.S.-China trade negotiations. Despite the high uncertainty surrounding the tariff policy, investor sentiment improved, and Wall Street overcame panic.

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.

Microsoft and Meta Earnings Boost Market Confidence

After the market closed on Wednesday, Microsoft and Meta released their quarterly earnings, both exceeding Wall Street expectations. Microsoft's revenue for the third quarter of fiscal year 2025 increased by 13% year-over-year, reaching $70 billion, with net income and earnings per share also surpassing market estimates. The company stated that cloud computing and artificial intelligence businesses are the main growth drivers, with Azure cloud platform revenue expected to grow by 34% to 35% next quarter. As a result, Microsoft's stock surged 7.63% on the May 1 trading day, closing at $425.10, marking a new high since the end of January.

As for Meta, its first-quarter revenue and profit also exceeded analyst expectations. CEO Mark Zuckerberg noted in the earnings call that the company is prepared to deal with macroeconomic uncertainties and emphasized the positive contribution of AI tools to advertising revenue. Meta's stock rose 4.23% that day, closing at $572.21, the highest since early April.

Indices Show Broad Gains

Driven by these two tech giants, major U.S. stock indices closed in positive territory. The Dow Jones Industrial Average rose 83.60 points, or 0.21%, to close at 40,752.96 points. The S&P 500 Index climbed 35.08 points, or 0.63%, to close at 5,604.14 points, marking the longest winning streak since August last year. The tech-heavy Nasdaq Index surged 264.40 points, or 1.52%, to close at 17,710.74 points, successfully recovering all losses since April 2. The Philadelphia Semiconductor Index rose 17.58 points, or 0.42%, to close at 4,247.66 points.

Tech Stocks Lead the Charge

In addition to Microsoft and Meta, other tech giants also performed well. Amazon's stock rose 3.13%, Apple edged up 0.39%, and Alphabet (Google's parent company) increased by 1.79%. Nvidia, a leader in AI chips, saw its stock rise 2.47%, Broadcom increased by 2.53%, and Micron rose 1.07%. However, Qualcomm's stock plummeted 8.92% due to market concerns over supply chain and tariff issues.

The information technology sector was the strongest performer among the 11 sectors in the S&P 500 Index, rising 2.21% in a single day, far surpassing other sectors. Communication services and consumer discretionary sectors rose 1.55% and 0.99%, respectively, while healthcare and consumer staples sectors declined.

Market Background and Economic Data

Despite the unexpected 0.3% contraction in the U.S. GDP for the first quarter, marking the first negative growth since 2022, and initial jobless claims rising to 241,000, exceeding market expectations, the positive market reaction to tech company earnings overshadowed the negative impact of economic data.

Additionally, the market is also focused on the latest developments in U.S.-China trade negotiations. Beijing suggested that the U.S. has recently reached out to China, and both sides are expected to restart trade agreement talks. This news further boosted market sentiment, especially after the Trump administration previously announced "reciprocal" tariffs on China, causing significant market volatility.

TSMC ADR and Other Key Stocks

Driven by the strong performance of U.S. tech stocks, TSMC's ADR rose 3.62%, closing at $172.72. The company benefited from the continued growth in demand for AI and high-performance computing, making it one of the leading stocks in the semiconductor sector.

In other stocks, Reddit's stock surged 18% in after-hours trading, as the company's first-quarter earnings and sales forecasts exceeded market expectations. Wayfair's stock rose 3.56% due to better-than-expected first-quarter performance. Conversely, Eli Lilly's stock fell 1.66% despite good earnings performance, as it lowered its full-year profit forecast.

References

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