Positive. The market is optimistic due to upbeat earnings from Microsoft and Meta.

From Yahoo Finance: 2025-05-01 17:13:00

Global markets were optimistic on Thursday after upbeat earnings from Microsoft and Meta, boosting U.S. ‘Big Tech’ trade. Despite U.S. GDP hit from trade in the first quarter, exports may face challenges ahead due to the ongoing trade war. Wall Street closed positively, with tech stocks leading the rally. The yen saw its biggest fall this year after the Bank of Japan’s ‘dovish hold’ on interest rates.

Tech giants like Meta and Microsoft are investing heavily in AI, bringing back optimism to U.S. ‘Big Tech’. The ‘Magnificent Seven’ rebounded after recent losses, with the Nasdaq recovering from ‘Liberation Day’ declines. While concerns about the growth outlook and labor market persist, U.S. Big Tech’s earnings are expected to outperform.

Imports surged in the first quarter, causing a record drag on U.S. GDP, while exports saw modest growth. The ongoing trade war could lead to retaliation, impacting U.S. exports negatively. The Trump administration’s tariff strategy may have unintended consequences, as history shows trade wars can have catastrophic effects on global economies.

Canada, a key trading partner of the U.S., could be a significant player in the trade war with Washington, potentially affecting millions of jobs across both nations. The U.S. trade deficit has been a persistent issue, and while Trump aims to reduce it through tariffs, it may take time to see significant results. Net exports are expected to remain a drag on growth due to the ongoing trade tensions.

Read more: Trading Day: Tech tonic!