Microsoft Surges 10% to Reclaim World's Most Valuable Company Title

U.S. stocks surged on Thursday, with the Nasdaq Composite Index leading the rally, as investors reacted positively to anticipated tariff news. The Nasdaq Composite Index rose more than 2%, while the Dow Jones Industrial Average gained 0.77%.

Chinese companies listed in the U.S. also saw significant gains, with the Nasdaq Golden Dragon China Index surging. Notable performers included WANDA Data, which rose over 4%, and TAL Education and Kingsoft Cloud, both of which gained more than 2%.

The market's optimism was fueled by comments from Larry Kudlow, the director of the U.S. National Economic Council. Kudlow indicated that a significant tariff-related announcement was expected by the end of the day, although he did not provide specifics. This news comes amid ongoing trade negotiations between the U.S. and China, with both sides seeking to resolve longstanding disputes over tariffs and trade policies.

Microsoft's stock price reached a three-month high, surging nearly 10% and pushing its market capitalization above $3.2 trillion, surpassing Apple to reclaim the title of the world's most valuable company. This surge was driven by strong earnings reported after the market close on Wednesday. Microsoft's third-quarter revenue for the fiscal year 2025 exceeded expectations, largely due to robust growth in its Azure cloud computing business. The company reported revenue of $70.07 billion, a 13% increase year-over-year, surpassing analyst estimates of $68.42 billion. Net income grew 18% to $25.8 billion, with adjusted earnings per share of $3.46, beating estimates of $3.21.

Analysts at Jefferies raised their price target for Microsoft to $550 from $475, citing the company's strong performance and growth prospects. This positive outlook, combined with the anticipated tariff news, contributed to the broader market rally.

In addition to the tariff news, the U.S. released several key economic indicators. The number of initial jobless claims for the week ending April 26 rose to 241,000, higher than the expected 224,000. This increase was primarily driven by seasonal factors in New York, where jobless claims typically rise during the spring break period. The S&P Global Manufacturing PMI for April came in at 50.2, slightly below the expected 50.5 and the previous month's reading of 50.7.

U.S. Treasury Secretary Janet Yellen noted that the U.S. Treasury market is signaling that the Federal Reserve should consider lowering interest rates. She pointed out that the yield on two-year Treasury notes has fallen below the federal funds rate, indicating that market participants expect the Fed to ease monetary policy.

Sources close to the negotiations revealed that the U.S. has been actively reaching out to China through various channels to discuss tariff issues. President Trump and his economic team have frequently hinted at ongoing trade talks with China. Experts suggest that the more frequently the U.S. releases such messages, the more urgent it appears to be in pushing for negotiations. From a negotiating standpoint, the U.S. is likely more eager to reach a resolution given the economic and political pressures it faces. China, on the other hand, may choose to wait for more concrete actions from the U.S. before engaging in serious talks, aiming to gain a strategic advantage in the negotiations.