U.S. Markets Climb on Tech Gains Amid Trade Easing
U.S. equity markets posted mixed but mostly positive performances in a quiet session ahead of key inflation and consumer spending data. The Nasdaq led the gains, climbing 0.7% thanks to strong showings from technology and communication services stocks. The S&P 500 rose slightly by 0.1%, while the Dow Jones slipped 0.2%, reflecting a shift away from defensive sectors like healthcare.
A key driver behind the recent equity rebound has been the easing of global trade tensions, especially with China and the UK. These developments have helped the S&P 500 recover from a 19% decline earlier this year, now returning to near flat performance year-to-date. Yields on U.S. Treasury bonds also moved higher, with the 10-year yield hitting 4.56%, as markets prepare for crucial updates on inflation and Federal Reserve policy.
Economic Focus Turns to PPI, Retail Sales, and Fed Outlook
Investor attention now turns to today’s economic data, with April’s Producer Price Index (PPI) and retail sales figures expected to provide deeper insights into inflation and consumer spending trends. Analysts are forecasting modest gains in both headline and core readings, as well as in the control-group retail sales metric that strips out volatile categories.
Despite recent tariff easing, Federal Reserve Vice Chair Philip Jefferson cautioned that any renewed trade tensions could temporarily interrupt the disinflationary momentum. Nevertheless, strong household finances and a resilient labour market continue to underpin consumer demand, helping to offset the impact of elevated prices.
Tech Stocks and M&A Activity Dominate Corporate Headlines
Investor enthusiasm for tech-driven growth remains strong. Super Micro Computer rose 15.7% after announcing a $20 billion AI partnership with Saudi Arabia’s DataVolt to deliver GPU platforms for data centres. AMD gained nearly 5% after launching a $6 billion share buyback programme, bringing its total repurchase capacity to $10 billion. Cisco Systems posted quarterly revenue of $14.15 billion and adjusted earnings of 96 cents per share, beating estimates and raising its annual revenue forecast. Shares rose 2.7% in after-hours trading. Meanwhile, Tencent Holdings reported 13% revenue growth to 180 billion yuan, supported by AI-fueled gains in its gaming and advertising divisions. Bernstein raised its price target on Tencent to HK$660, highlighting the company’s long-term AI strategy.
M&A activity also took centre stage as Dick’s Sporting Goods approached a $2.3 billion deal to acquire Foot Locker. The proposed offer of $24 per share represents an 86.5% premium to Foot Locker’s previous closing price. The news sent Foot Locker shares soaring by 69% in after-hours trading, although Dick’s Sporting Goods fell about 5%.
Global Market Snapshot: Asia and Europe in Mixed Territory
Asian equity markets mostly retreated as investors turned cautious ahead of earnings from Alibaba and commentary from the U.S. Federal Reserve. Japan led the regional losses due to GDP concerns, while markets in China, Hong Kong, Australia, and Singapore registered modest moves. In U.S. after-hours trading, UnitedHealth dropped 8% amid a Japanese central bank probe.
European equities also ended lower as investors engaged in profit-taking and weighed tariff risks. The Eurozone’s STOXX 50 index fell 0.3%, while the broader STOXX 600 declined 0.4%. Luxury stocks were among the hardest hit, with LVMH and Kering falling 2% and 3% respectively, and L’Oréal down 3.3%. Healthcare shares declined as well amid growing concerns over U.S. drug price reforms. Conversely, banks outperformed, with Santander, UniCredit, and ING each gaining over 1%.
Currency and Commodities Update
The U.S. dollar traded in a narrow range amid conflicting investor sentiment driven by the U.S.-China tariff truce and ongoing trade uncertainty. The euro hovered near $1.1214, buoyed by a comparatively weaker dollar, while the dollar index remained stable at 101. Despite the short-term pause, the greenback is expected to strengthen further in the coming weeks on the back of economic and policy developments.
Oil prices extended their declines during Asian trading hours. Brent crude dropped 1.6% to $65.04 per barrel, while WTI fell 1.7% to $61.62. The declines followed news that Iran may agree to a nuclear deal with the U.S. if sanctions are lifted. The market was also weighed down by a surprise 3.5 million barrel increase in U.S. crude inventories and continued production expansion from OPEC+ members, fuelling fears of oversupply.
Other Notable Stock Moves
UnitedHealth Group shares declined sharply on news that the U.S. Department of Justice is conducting a criminal investigation into its Medicare Advantage business. The company is also facing antitrust and civil probes, has recently replaced its CEO, and is dealing with uncertainty tied to federal healthcare spending and potential reforms to drug pricing.
Euronext delivered strong first-quarter earnings, with revenue up 14.1% year-over-year to €458.5 million. Adjusted EBITDA climbed 17% to €294.1 million, producing a margin of 64.1%. Adjusted net income rose 11.8% to €183.5 million, driven by record fixed income trading, buoyant equity markets, and increased non-volume revenue, which accounted for 57% of the total.
Burberry unveiled plans to reduce its global workforce by approximately 1,700 positions, around 20% of its total staff. The job cuts will mainly affect office roles and include the elimination of a night shift at the Castleford trench coat factory. These changes are part of a broader cost-saving plan targeting £100 million in annual savings by 2027, while also investing in UK manufacturing upgrades.
Starbucks has initiated discussions with private equity firms and tech companies about potentially selling a stake in its China business. Letters sent via financial advisors seek to gauge interest and invite proposals on how to accelerate growth. The move could value Starbucks’ China operations in the multi-billion-dollar range.
Netflix reported rapid growth in its ad-supported tier, which now has 94 million monthly active users, up from 70 million in November. The $7.99 plan has attracted significant demand, especially among U.S. viewers aged 18 to 34, and now delivers more reach in that age group than any broadcast or cable network. The company continues to scale its global advertising platform.
Apple is enhancing its Vision Pro headset as part of the upcoming visionOS 3 update. A new eye-scrolling feature will allow users to scroll through content using only their eye movements, eliminating the need for hand gestures and further improving user experience.
Novo Nordisk has entered into a partnership with Septerna in a deal worth up to $2.2 billion to develop oral small molecule drugs for treating obesity and diabetes. This initiative will strengthen Novo’s position in the $150 billion obesity treatment market, where it competes with rivals like Eli Lilly’s Zepbound.
Qatar Airways has placed a record-breaking $96 billion order for 160 widebody aircraft from Boeing, including 130 Dreamliners and 30 777X planes. The agreement, signed during a visit from President Donald Trump to Qatar, also includes more than 400 GE Aerospace engines, making it Boeing’s largest-ever widebody aircraft order.
eToro successfully priced its IPO at $52 per share, raising $620 million by selling nearly 12 million shares. On its Nasdaq debut, shares surged 39% to $72.25, valuing the company at nearly $6 billion. The company also reported standout 2024 results, including a 1,161% increase in net income to $192 million and a 46% rise in commissions, driven by growth in cryptocurrency and equity trading.
Alstom shares tumbled more than 17% after issuing a cautious outlook for fiscal year 2025/26. The company projected free cash flow between €200 million and €400 million and an adjusted EBIT margin of 7%, both below market expectations. Despite this, Alstom reported strong results for the current fiscal year, including €502 million in free cash flow, 6.6% organic sales growth, and significant progress in reducing debt following the Bombardier acquisition.
Finally, Bank of America raised its price targets for Nvidia to $160 and for AMD to $130, citing major multi-year AI deals with Saudi Arabia’s HUMAIN valued at $3 to $5 billion annually. These contracts are expected to help both companies offset the impact of export restrictions to China starting in 2026. The sovereign AI market is projected to reach $50 billion annually, with Nvidia anticipated to secure $7 billion in deals and AMD poised to deliver its first major international AI project worth $10 billion.
Looking Ahead
Investors are now focused on today’s release of key U.S. data including retail sales, jobless claims, and the Producer Price Index. These figures are expected to shed light on the strength of consumer spending, inflation pressures, and the labour market—insights that will likely influence the Federal Reserve’s future policy stance. In addition, corporate earnings from Walmart, Deere & Co, and Applied Materials will be closely scrutinised for signals on how companies are navigating current economic conditions.
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