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Market Wrap | US Stocks Surge as Tech Sector Leads Gains and Trade Rules Shift

Market BriefThursday, May 1, 2025 6:02 pm ET

1min read

May 1, 2025: The US stock market saw gains with the S&P 500 rising 0.63%, the Dow Jones increasing 0.21%, and the Nasdaq surging 1.52%. US Treasury Secretary Bessent's statement on the yield curve suggested that the Federal Reserve should consider cutting interest rates, potentially influencing monetary policy. Additionally, the US Customs and Border Protection confirmed that North American auto parts compliant with USMCA trade rules are exempt from Trump's 25% autos tariff, affecting trade dynamics.

In today's market, the technology sector and the industrial sector outperformed the S&P 500. Notably, the technology sector demonstrated exceptional performance. Conversely, the healthcare sector, consumer staples sector, materials sector, and financial sector moved in the opposite direction of the S&P 500.

Microsoft shares rose 7.63% as the tech giant extended its partnership with OpenAI to enhance AI capabilities. Oracle's stock climbed 3.39% on the back of its cloud division's impressive 52% year-over-year revenue growth in the latest quarter. TSMC's shares gained 3.62% after the company announced plans to expand production capacity in Taiwan, boosting investor confidence. Meta's stock rose 4.23% as the company reported a 16% year-over-year revenue growth, driven by a 10% rise in average ad prices and a 5% increase in impressions across its Family of Apps. amazon.com's shares rose 3.13% following the announcement of strong quarterly earnings.

Classover shares surged over 366%, driven by a $400 million equity purchase agreement with Solana Strategies, reflecting strong investor confidence. Zoomcar Holdings saw a significant rise of 153%, attributed to a notable increase in contribution profit for Q3 2024, further boosting investor sentiment. CDT Environmental, however, faced a substantial drop of 71.67% due to a regulatory investigation that impacted market trust. E-Home Household Service also declined by 29.71%, as the company grapples with financial instability and declining service demand.

Amazon's Q1 sales exceeded expectations; however, slower cloud growth triggered a sell-off, impacting stock performance. Nvidia's CEO suggested that restrictions on their chips could enhance Huawei's AI capabilities, potentially affecting competitive dynamics in the semiconductor industry. The US Customs and Border Protection confirmed that North American auto parts complying with USMCA trade rules are exempt from a 25% tariff, influencing trade relations and the automotive sector. The US Export Import Bank board decided to end the policy restricting lending for overseas coal projects, which may affect international energy investments and environmental considerations.

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