Optimism returns to markets
U.S. stocks ended the day higher on Wednesday, helped by fresh hopes for progress in trade talks between Washington and Beijing. Investors responded to conciliatory signals from both sides, giving confidence in the prospect of easing economic tensions between the world's two largest economies.
Trump on the Fed: "Powell will stay"
An additional factor of support for the market was the calming statements of President Donald Trump. He dispelled fears about political pressure on the Federal Reserve System, emphasizing that he was not going to dismiss its head Jerome Powell. This strengthened the faith of market participants in the independence of the regulator.
Indices are growing, but modestly
The main stock indices - S&P 500, Dow Jones and Nasdaq - confidently gained momentum during the session, but moderated their growth by the close. US Treasury Secretary Scott Bessent noted that the existing tariffs between the US and China "cannot be sustainable in the long term", which also supported positive sentiment.
Tesla: Musk is leaving politics, but profits are falling
Tesla shares jumped by 5.3% after Elon Musk announced his intention to reduce interaction with the White House in order to focus on managing his businesses. However, the positive news background could not hide the financial difficulties: the company's net profit in the last quarter fell by 71%.
Boeing and General Dynamics: different directions
Boeing shares rose by 6.1% after the aircraft manufacturer reported a quarterly loss, which was lower than analysts expected. The company increased production and supply volumes, which helped smooth out financial losses.
At the same time, General Dynamics showed a 27% increase in profit in the first quarter thanks to a stable defense order. However, the decline in demand for business jets had a negative impact: the company's quotes fell by 3.3%.
Wall Street does not slow down
On Wednesday, American stock exchanges demonstrated a confident rally. The Dow Jones industrial average added 419.59 points, which corresponds to an increase of 1.07%, reaching 39,606.57. The broad S&P 500 rose 88.10 points, or 1.67%, to settle at 5,375.86. The tech-heavy Nasdaq posted the biggest gain of the day, adding 2.5%, 407.63 points, to close at 16,708.05.
The rally amid political instability and trade uncertainty was a pleasant surprise for investors, especially given the jitters of recent weeks.
Airlines Under Pressure: Southwest Loses Its Orientation
Southwest Airlines has joined the ranks of carriers that have scrapped their financial guidance amid growing economic turbulence caused by trade policy uncertainty. The company acknowledged that it could not accurately assess the impact of external factors, including a potential escalation of tariffs. As a result, the carrier's shares have lost 4% of their value.
Early Trading: Futures Lose Heights
Despite a positive close, early trading on Thursday indicated caution among market participants. By 5:35 a.m. ET, Dow futures had lost 234 points (-0.59%), S&P 500 futures had fallen 26.75 points (-0.5%), and the Nasdaq 100 had dropped 126.25 points (-0.67%). This could indicate a correction after a strong rally, or signal new risks on the horizon.
Auto giants are losing value
Shares of U.S. automakers Ford and General Motors fell about 1% in pre-market trading. The reasons for the decline are the same: traders' concerns about geopolitical uncertainty and possible retaliatory measures from China.
IBM under attack: government contracts frozen
International Business Machines (IBM) found itself at the epicenter of negativity after announcing the suspension of 15 government contracts. This is due to the Trump administration's decision to cut spending as part of its economic agenda. Investors reacted painfully - the IT giant's quotes fell by 7.6%.
Inspiration from ServiceNow
Meanwhile, ServiceNow pleasantly surprised the market: the enterprise software developer reported quarterly profit that significantly exceeded analysts' expectations. The reaction was lightning fast — the company's shares soared by 9.2%, becoming one of the brightest stories of the day.
Stock exchanges held their breath
Investors are still waiting for the next move in the global trading game. Today, attention will be focused on the publication of quarterly results of several corporate heavyweights at once — among the main players of the day are Procter & Gamble, pharmaceutical giant Merck and tech brand Alphabet. These reports could set the tone for future market sentiment.
Decline amid uncertainty
European stock markets opened in the red on Thursday. The reason was a variety of corporate reports and continued investor wariness due to the unstable rhetorical background in the US-China trade conflict. The pan-European STOXX 600 index lost 0.7% by morning. National indicators also closed in the red: the German DAX, the French CAC 40, the Spanish IBEX and the British FTSE showed a decline in the range of 0.3% to 0.9%.
The rebound was short-lived
Wednesday brought relief - the markets perked up after statements from Washington, which sounded in a more conciliatory tone. US Treasury spokesman Scott Bessent made it clear that the existing trade barriers between the US and China cannot be long-term. This helped stocks recover both on American exchanges and in Europe. However, the positive momentum did not last long: on Thursday, cautious sentiments again prevailed on the markets.
Investors withdraw capital from premium sectors
The shares of European companies focused on the luxury segment fell especially noticeably - the luxury brand index fell by 1.8%. The tech sector followed suit, losing 1.4%. The move was driven by weaker global demand and concerns that China's possible retaliatory measures would hit export-oriented companies hardest.
Recovering from the fall
Despite the current slump, the STOXX 600 has already recovered more than half of the losses it suffered earlier this month, when a sudden tariff tightening by the US sent markets down almost 18% from record levels.
Monetary policy in support mode
The European Central Bank took a step toward easing monetary policy last week, cutting its deposit rate by 25 basis points. The move is aimed at supporting the region's economy, which continues to be under pressure from external risks and weakening global demand. Markets are now confident that at least two more rate cuts will follow before the end of the year.
Adidas Off to a Strong Start
German sports giant Adidas pleased investors by publishing first-quarter results that significantly exceeded analysts' forecasts. The company's shares gained 1.8% on the back of strong sales and better-than-expected operating profit. The quarter's success was especially significant after a turbulent period associated with business restructuring and exiting some markets.
BNP Paribas No Surprises - and No Optimism
Shares in the eurozone's largest bank by assets, BNP Paribas, fell 3.1% after publishing its financial statements, in which quarterly profit matched market expectations. Despite the lack of negative surprises, investors took the result with a cool head - the market was clearly expecting more. General doubts about the stability of the banking sector against the backdrop of a volatile macroeconomic environment probably also played a role.
Kering Loses Weight
The French luxury segment representative, the Kering group, also suffered a setback. The company reported a sharper-than-expected drop in first-quarter revenue. Investors reacted immediately: the brand, which owns fashion houses such as Gucci and Balenciaga, plunged 5.8%. The decline in demand for luxury goods, especially in Asia, was a warning sign for the entire sector.
Nokia under pressure: a breakdown in rhythm
The biggest disappointment came from Finnish telecom giant Nokia. The company showed results that significantly lagged market forecasts: quarterly profit was lower than expected, and management warned of short-term disruptions caused by US tariffs. Against this backdrop, the shares fell 9.7%, becoming one of the hardest-hit stocks of the day in Europe.
