[New York Stock Market Close] Gains Amid Positive Big Tech Earnings Reports

U.S. Stocks Rally as Tech Giants Deliver Stellar Earnings Major indices on Wall Street closed higher on the first trading day of the month, propelled by robust quarterly earnings from tech giants Microsoft (MSFT) and Meta Platforms (META), bolstering investor confidence. On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average climbed 83.60 points, or 0.21%, ending at 40,752.96. The S&P 500 surged 35.08 points, or 0.63%, to finish at 5604.14, its highest since a key tariff announcement last month. The tech-focused Nasdaq Composite jumped 264.40 points, or 1.52%, closing at 17,710.74. Big Tech Earnings Propel Market Gains Better-than-expected earnings from major tech companies fueled optimism across equity markets. Microsoft reported robust cloud segment revenue growth, with sales and profits surpassing Wall Street predictions. Meta Platforms also posted strong financial results, driven by solid advertising revenue despite tariff uncertainties. Microsoft shares soared 7.63%, while Meta increased 4.23%. Investors were also keenly watching earnings from Amazon (AMZN) and Apple (AAPL), released post-market. Amazon wrapped up the day with a 3.13% rise, and Apple gained 0.39%. Analysts Credit Market Rebound to Tech Earnings Experts highlighted that strong tech earnings offered a reprieve from recent trade-related pessimism due to former President Donald Trump’s tariff policies. “It’s refreshing to see the market driven by corporate earnings rather than endless tariff discussions,” said Rama Villere, portfolio manager at Villere & Co. “When firms like Microsoft and Meta report stellar results, it indicates more momentum in the market rally.” Jed Ellerbrock, portfolio manager at Again Capital Management, echoed this view. “Few stocks are truly immune to tariffs and trade wars, but AI-focused firms are proving more resilient than currently perceived,” he commented. “We’re at the early stages of a steep growth curve, particularly in AI infrastructure.” Economic Indicators Deliver Mixed Signals The day's economic data highlighted mixed signals about the U.S. economy. The Labor Department reported a rise in weekly jobless claims to 241,000, exceeding the market estimate of 225,000. This follows a preliminary first-quarter GDP growth figure of -0.3%, raising concerns about the economic outlook. Additionally, the Institute for Supply Management (ISM) disclosed that its April Manufacturing Purchasing Managers’ Index (PMI) dropped to 48.7, marking a five-month low. A PMI below 50 indicates economic contraction, while above 50 suggests expansion. Stephen Stanley, chief U.S. economist at Santander, warned manufacturing conditions might be worse than indicated. “Tariff uncertainties are causing a slowdown in production activity, with delays in delivery times and inventory buildup,” Stanley remarked. Stock Highlights Among individual stocks, online furniture retailer Wayfair (W) rose 3.55% on better-than-expected earnings. On the other hand, pharmaceutical giant Eli Lilly (LLY) plummeted 11.66% after issuing a downward revision of its annual profit forecast. The CBOE Volatility Index (VIX), Wall Street’s “fear gauge,” slipped 0.16% to 24.66, reflecting slightly reduced market jitters. For investors, tech dominance this earnings season has shifted the focus, albeit temporarily, from trade-related concerns to optimism about corporate resilience. Attention now shifts to upcoming data and earnings to sustain the rally.