Wall Street Extends Rally as Tech Leads, Commodities Slip Amid Trade Hopes and Fed Optimism

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Index Update

US stocks rallied for a third straight day Thursday as megacap tech led the charge: S&P 500 +2%, Nasdaq 100 +2.7%, Dow +486 pts. Nvidia (+3.6%), Meta (+2.5%), Amazon (+3.3%), Tesla (+3.5%), Microsoft (+3.4%) all climbed. Investor optimism was buoyed by hopes for a Fed rate cut in June after Cleveland Fed’s Hammack comments. Mixed trade signals kept caution alive—Trump hinted tariff easing while China denied talks, demanding all unilateral tariffs be removed. Eyes on Alphabet & Intel earnings for trade war impact. IBM (-6.6%) & P&G (-3.7%) weighed on the Dow.

Commodities Update- WTI crude oil futures hovered around $62.5/bbl Friday, set for a weekly loss amid oversupply fears from a potential Russia-Ukraine ceasefire & OPEC+ output hikes. Kazakhstan prioritizes national interests over cuts. China may lift tariffs on some US imports, easing trade tensions. US hits key Iranian LPG/crude shipper with new sanctions. Gold slips near $3,300/oz as trade war de-escalation dims safe haven demand; silver dips amid dollar strength. Trump confirms ongoing China trade talks & softens Fed criticism.

Macro Update

Gold prices retreated to around $3,300 per ounce on Friday, reversing recent gains as China signaled a possible halt to tariffs on select US imports—a move that eased safe-haven demand for bullion. The shift comes amid reports that Beijing is asking businesses to identify US goods for exemption from its 125% tariffs, pointing to a potential de-escalation in the US-China trade war. President Trump confirmed ongoing trade talks, although Chinese officials have denied active negotiations and continue to call for the removal of all unilateral tariffs. Despite this week’s pullback, gold remains up nearly 30% year-to-date after hitting a record $3,500 earlier in the week, underscoring its strong outperformance in 2025.

Futures Update

U.S. stock futures dipped Friday as investors weighed Alphabet’s strong Q1 earnings against lingering trade tensions. Dow futures fell 187 pts (-0.5%), S&P 500 down 0.3%, Nasdaq 100 off 0.4%. Despite this, major indexes are set for solid weekly gains: S&P +4%, Nasdaq +5%, Dow +2%. Optimism on easing U.S.-China tariffs as China considers exemptions on some U.S. goods. Final U. Michigan consumer sentiment data awaited amid inflation concerns.

Pre-market Movers

US stock futures climbed on Friday as Alphabet surged 5% in after-hours on strong Q1 earnings, beating revenue and EPS estimates. Search & ads showed solid growth despite AI competition, lifting Nvidia (+1.1%), Tesla (+1.4%), Meta (+4%), and Amazon (+1.8%). Major indices posted a third straight day of gains Thursday: Dow +1.23%, S&P 500 +2.03%, Nasdaq +2.74%. Optimism grew on potential Fed rate cut as Cleveland Fed’s Hammack hinted at a June move if data supports. Markets remain cautious on mixed US-China trade signals.

Building on the strong gains from the previous two sessions, stocks surged during Thursday's trading. All major indices closed near their highs for the day, with the S&P 500 rising by 108.93 points, or 2.03%, to settle at 5484.78. From a technical perspective, the index encountered selling pressure due to a descending trendline resistance zone, as shown in the chart. This suggests a potential period of consolidation before a definitive directional trend emerges in the near term. Furthermore, the 14-period Relative Strength Index (RSI) is currently around the midpoint, indicating that we may see sideways momentum in the near future. The key support level is identified at 5596, while resistance is noted at 5492.