U.S. Stocks Surge 0.77% on Tariff News, Microsoft Reclaims Top Spot

U.S. stocks experienced a significant surge on Thursday, with the Nasdaq Composite Index leading the rally. This positive market sentiment was driven by news regarding tariffs, which sparked investor optimism. The Nasdaq China Golden Dragon Index, which tracks the performance of Chinese companies listed on U.S. exchanges, also saw substantial gains. Several prominent Chinese companies experienced notable increases, with WANDA Data rising over 4%, and both Gaotu and Kingsoft Cloud gaining more than 2%.

The rally was fueled by comments from the Director of the National Economic Council, who indicated that a significant announcement regarding tariffs was expected before the end of the trading day. This news provided a boost to investor confidence, leading to a broad-based rally in U.S. equities. The Dow Jones Industrial Average also saw gains, rising by 0.77% by the time of reporting.

The surge in U.S. stocks was not limited to domestic companies. Chinese companies listed on U.S. exchanges, often referred to as Chinese concept stocks, also benefited from the positive market sentiment. The Nasdaq China Golden Dragon Index, which includes many of these companies, saw a substantial increase. This index is often used as a benchmark for the performance of Chinese companies listed in the U.S. and is closely watched by investors for insights into the broader market trends.

The interconnected nature of global markets was highlighted by this event. News and developments in one region can have a significant impact on markets around the world. In this case, the anticipated tariff announcement provided a catalyst for a broad-based rally in U.S. equities, with Chinese concept stocks also benefiting from the positive market sentiment.

Additionally, Microsoft's stock price reached a three-month high, with a near 10% increase in value. This surge pushed Microsoft's market capitalization above $3.2 trillion, surpassing Apple and reclaiming the title of the world's most valuable company. The tech giant's strong performance was driven by its Azure cloud computing business, which showed robust growth. In the third fiscal quarter of 2025, Microsoft reported revenue of $700.7 billion, a 13% increase from the previous year, exceeding analyst expectations of $684.2 billion. Net income grew by 18% to $258 billion, and adjusted earnings per share were $3.46, surpassing the previous year's $2.94.

This positive market sentiment was further supported by the release of key economic data from the U.S. The number of initial jobless claims for the week ending April 26 was 241,000, higher than the expected 224,000. This increase was primarily due to seasonal factors in New York, where jobless claims typically rise during the spring break period. Additionally, the S&P Global Manufacturing PMI for April was 50.2, slightly below the expected 50.5. These economic indicators provided further context for the market's reaction to the tariff news, highlighting the complex interplay between economic data and investor sentiment.