New York — Futures for major stock indexes surged Thursday evening following China’s announcement that it is considering the launch of trade negotiations with the United States. The S&P 500 futures increased by 0.68%, while the Dow Jones Industrial Average futures rose by 0.82%, gaining 337 points. The Nasdaq 100 futures saw a smaller uptick of 0.32%.
As Wall Street absorbed earnings reports from two notable tech giants and prepared for an important jobs report, investors expressed optimism about potential easing in trade tensions. The bullish sentiment coincided with recent gains in the technology sector, particularly after positive earnings reports from prominent companies in the field.
In after-hours trading, shares of Apple declined by 4% following a disappointing revenue report from its Services division, which fell short of analysts’ projections. Additionally, Apple revealed it expects its costs to rise by $900 million in the upcoming quarter due to tariffs. Amazon also experienced a 2% drop after providing cautious guidance and citing tariffs and trade policies as significant concerns.
The market opened May on a positive note, with the Dow securing a slight gain of 0.2% and the S&P 500 advancing by 0.6%. Both indexes recently enjoyed an impressive eight-day win streak, with the Nasdaq Composite rising 1.5%, recovering losses incurred since early April when fears were ignited by trade policies.
Earnings reports are proving to be a driving force behind market momentum. Nearly two-thirds of S&P 500 companies have disclosed their results so far, with 76% exceeding analysts’ expectations, according to FactSet data. Market analysts, such as Adam Crisafulli, founder of Vital Knowledge, noted that recent earnings were critical to the S&P 500 rally, attributing some blame to the decreased intensity of tariff rhetoric.
Traders are now eyeing Friday’s jobs report for further insights into the health of the U.S. economy. Economists surveyed by Dow Jones predict a growth of 133,000 jobs in April, a decrease from the previous month’s 228,000. The unemployment rate is also expected to remain steady at 4.2%.
The latest economic data comes on the heels of a report that showed a 0.3% contraction in gross domestic product for the first quarter of this year. Weak private payroll data from ADP and a surge in weekly jobless claims, hitting 241,000, have raised concerns among economists regarding labor market stability.
Currently, all three major U.S. stock indexes are signaling potential consecutive weekly gains, with the S&P 500 on track for a 1.4% increase, the Dow looking at a 1.6% rise, and the Nasdaq poised for a 1.9% week-to-date advance. Investors are eagerly awaiting further developments from various sectors as they navigate this volatile economic landscape.
