Stocks Rise on Trade Optimism Despite Tech Warnings; Eyes on Jobs Report

Image Source : Krish Capital Pty Ltd

Index Update

Apple and Amazon shares dropped in after-hours trading due to tariff concerns and weak guidance. Investors are now awaiting the April employment report for clues on the economic impact of trade policies. Meanwhile, strong earnings from Meta and Microsoft boosted major indexes, with the Nasdaq leading gains on renewed AI optimism.

Market Movers

On Thursday, the top gainers were  Zoomcar Holdings, Inc (+162.9%), followed by Classover Holdings, Inc (+110.43%). On the contrary Arvinas, Inc (-33.89%) and OneWater Marine Inc (-20.05%) declined the most the same day.

Commodities Update

WTI and Brent crude oil prices rose toward $60 and $63 per barrel, respectively, driven by optimism over potential U.S.-China trade talks and threats of U.S. sanctions on Iranian oil buyers. However, both benchmarks remain on track for a weekly loss of about 5% due to concerns over weak global demand, U.S. GDP contraction, China's factory slowdown, and expectations of increased OPEC+ supply, with Saudi Arabia open to lower prices and higher output.

Gold prices hovered around $3,250 per ounce, facing their worst weekly performance in over two months as easing trade tensions reduced demand for safe-haven assets. Market sentiment shifted after China and the U.S. signaled possible trade progress, while investors await key labor data for further insight into the Federal Reserve’s next policy moves.

Macro Update

The U.S. is expected to have added 130,000 jobs in April, down from March's weather-boosted gain, amid uncertainty over President Trump's tariff policies. With unemployment steady at 4.2% and wage growth easing to 3.8%, the report may be seen as backward-looking, especially following weak GDP data. Signs of a slowing labor market and trade-related pressures could lead the Federal Reserve to consider a rate cut in June.

Futures Update

U.S. stock futures rose Friday amid easing U.S.-China trade tensions, offsetting weak guidance from Apple and Amazon. As of early morning, Dow, S&P 500, and Nasdaq 100 futures were up 0.4%, 0.4%, and 0.2%, respectively. Markets opened May positively, helped by strong results from Meta and Microsoft. All major indices are set for their second consecutive weekly gain, with the S&P 500 up 1.4%, the Dow up 1.6%, and the Nasdaq up 1.9%.

After experiencing an early rally in the session, stocks retreated somewhat during Thursday's trading but overall remained mostly higher. The S&P 500 increased by 35.06 points, or 0.63%, closing at 5,604.13. Additionally, the 14-period Relative Strength Index (RSI) stays above the midpoint, indicating that bullish momentum could develop further soon. From a technical standpoint, the index broke through its downward-sloping trendline, suggesting potential for additional gains in the near term. However, the price is currently hovering near the 50-period exponential moving average, which may act as a resistance level in the short term. The key support level is identified at 5,433, while resistance is seen around 5,732.