Stock Markets Rise: Focus on Business Results and China-U.S. Negotiations

On Wall Street, stock prices rose on Thursday, particularly in the technology sector, as investors were encouraged by better-than-expected quarterly business results from Microsoft and Meta Platforms. The Dow Jones index strengthened by 0.21 percent, to 40,752 points, while the S&P 500 rose by 0.63 percent, to 5,604 points, and the Nasdaq index increased by 1.52 percent, to 17,710 points.

The rise of the S&P 500 index for the eighth consecutive day is attributed to better-than-expected quarterly business results from most companies within that index. Thanks to such results, the share price of Meta rose by more than two percent, and Microsoft’s by more than three percent, making the technology and communication sectors lead in price growth.

– It is nice to see the market rise due to company earnings, while speculation about tariffs has taken a back seat. It is refreshing, for a change, to talk a little about company results and economic indicators – says Lamar Villere, portfolio manager at Villere & Co.

While the business results of companies are above expectations, economic data is weak. On Wednesday, it was announced that the U.S. economy unexpectedly contracted in the first quarter for the first time in three years. New data also shows that the number of layoffs increased last week, while the PMI index for the manufacturing sector further declined in April. These are the first indicators of the impact of the trade war that Washington is waging with the rest of the world on the economy.

On Asian stock exchanges, stock prices rose on Friday, while the dollar strengthened against a basket of currencies, after Beijing indicated that it is considering the possibility of trade negotiations following a series of calls from U.S. officials.

The MSCI index of Asian stock markets was up 0.4 percent around 7:00 AM. Meanwhile, stock prices in South Korea, Australia, Japan, and Hong Kong rose between 0.4 and 1.7 percent, while they slightly fell in Shanghai.

Asian investors were encouraged by the message from the Chinese Ministry of Commerce that, after a series of calls from U.S. officials, the possibility of trade negotiations is being considered. This is seen in the market as a prelude to negotiations on tariffs and other conditions of mutual trade, which analysts expect to be long and uncertain.

The easing of trade tensions between the two largest economies in the world also spurred the rise of U.S. futures indices, which were in the red before the news of the possibility of negotiations due to falling stock prices of Apple and Amazon, after these tech giants warned of the negative impact of tariffs on their business.

On the currency markets, the value of the dollar against a basket of currencies rose, putting it on track for a weekly gain of about 0.5 percent.

The dollar index, which shows the value of the U.S. dollar against the other six major world currencies, is around 100.05 points this morning, while it was 99.95 points at the same time yesterday. Meanwhile, the exchange rate of the dollar against the Japanese currency slipped by 0.05 percent, to 145.35 yen.

The U.S. currency also weakened against the euro, with the price of the euro rising by 0.1 percent, to 1.1305 dollars. Oil prices, on the other hand, increased. The price of a barrel on the London market strengthened by 0.72 percent, to 62.60 dollars, while on the U.S. market, a barrel rose by 0.78 percent, to 59.70 dollars.

On European stock exchanges, stock prices significantly rose on Friday morning as China indicated it could begin negotiations with the U.S. on tariffs and other trade conditions.

The STOXX 600 index of leading European stocks was up 0.8 percent at 9:30 AM and is on track for a significant weekly gain.

This morning, the London FTSE index strengthened by 0.85 percent, to 8,568 points, while the Frankfurt DAX rose by 1.26 percent, to 22,780 points, and the Paris CAC increased by 1.29 percent, to 7,690 points.