U.S. stock futures surged early Friday, fueled by reports that China is looking to enter trade negotiations with the United States. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were up 0.18%, 0.45%, and 0.38%, respectively, at 5:29 a.m. EST, May 2.
The market’s positive sentiment was partially offset by after-hours earnings reports from two “Magnificent Seven” tech giants, Apple (AAPL) and Amazon (AMZN).
In the extended trading, Apple stock declined by 4% despite beating fiscal second-quarter estimates. The iPhone maker said it projects an additional $900 million in costs for the current quarter due to tariffs. Also, AMZN stock dropped by 2% following lighter-than-expected guidance, with the company citing tariffs as a key contributing factor.
These movements followed a positive start to May for the major averages. On Thursday, the Dow Jones and the S&P 500 gained 0.2% and 0.6%, respectively, both marking their eighth consecutive day of gains. Further, the Nasdaq Composite (NDAQ) jumped 1.5%.
The rally was fueled by optimism in the tech sector, particularly after Meta Platforms (META) and Microsoft (MSFT) reported solid earnings, boosting investor confidence for AI stocks.
Market focus now shifts to the April jobs report, due today, which is expected to provide further clarity on the U.S. economy’s health. Economists anticipate a slowdown in payroll growth to 133,000 in April, down from 228,000 in March, with the unemployment rate expected to remain steady at 4.2%.
On the earnings front, ExxonMobil (XOM), Chevron (CVX), FuboTV (FUBO), and Shell (SHEL) will report earnings today.
Meanwhile, the U.S. 10-year treasury yield was down, floating near 4.202%. Simultaneously, WTI crude oil futures are trending lower, hovering near $58.95 per barrel as of the last check.
At the same time, the Gold Spot US Dollar Price (XAUUSD) rose to $3,260 per ounce on Friday. However, the safe-haven asset is set for a weekly loss as easing trade tensions boosted risk appetite, hurting its demand.
Elsewhere, European indices opened higher today, as investors reacted to signals that China is seeking trade talks with the U.S. Also, stocks gained after Eurozone inflation remained steady at 2.2% in April, against forecasts of a dip to 2.1%.
Asia-Pacific Markets Ended Higher
Most of the Asia-Pacific indices were in the green today on U.S.-China trade talk hopes, which will potentially ease tensions between the two economies. Meanwhile, Japan and the U.S. wrapped up a second round of bilateral negotiations, with Tokyo aiming to finalize a trade agreement by June.
At the same time, the Hong Kong index was up 1.74%. Further, Japan’s Topix and Nikkei indices closed higher by 0.31% and 1.04%, respectively. Also, China’s Shenzhen Component index gained 0.51% while the Shanghai Composite index was down 0.23%, respectively.
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