From Yahoo Finance: 2025-05-01 07:13:00

Big Tech companies like Microsoft and Meta saw an 8% and 5% increase in shares, respectively, after strong cloud computing and artificial intelligence results. The tech sector’s positive performance lifted Nasdaq and S&P 500 futures by 1-1.5%. Amid concerns about tariffs and the economy, positive tech earnings are boosting the market.

The U.S. economy experienced a 0.3% first-quarter contraction, influenced by import stockpiling due to tariffs. However, consumption and production remained resilient. Despite the GDP miss, progress in trade talks with China and a deal signed with Ukraine for mineral access and investment signal potential improvements. Federal Reserve easing bets have increased, impacting Treasury yields and oil prices.

Futures are pricing in over 100 basis points of rate cuts by yearend, sparking a slip in U.S. Treasury yields and crude oil prices. The dollar reached its best level since mid-April, with the yen falling after the Bank of Japan left interest rates unchanged. The contrasting fortunes of the U.S. and euro zone GDP in the first quarter are examined in today’s column, questioning the sustainability of Europe’s outperformance.



Read more at Yahoo Finance: Tech tonic for stalled economy