Wall Street retreats as earnings buzz fades
U.S. stocks ended Thursday in the red as early gains evaporated throughout the session. Investors remained cautious ahead of earnings reports from tech heavyweights Amazon and Apple, due after market close.
Microsoft hits $4 trillion milestone
Shares of Microsoft climbed 3.5% on the back of a strong earnings release. The company's market valuation briefly crossed the $4 trillion mark, making it only the second publicly traded company ever to reach that milestone — following Nvidia.
Not all tech shines: chipmakers stumble
Some AI-linked stocks struggled despite the broader tech optimism. Semiconductor firm Broadcom fell 2.9%, while Nvidia dipped 0.8%. These declines dragged down the PHLX Semiconductor Index by 3.1%, marking its sharpest one-day drop since April 16.
Amazon slides after hours
After the market closed, Amazon shares declined by 2.6% in extended trading following a quarterly earnings report that fell short of investor expectations.
Market recap:
- Dow Jones fell by 330.30 points, or 0.74%, to 44,130.98;
- S&P 500 dropped 23.51 points, or 0.37%, to 6,339.39;
- Nasdaq Composite slipped 7.23 points, or 0.03%, to 21,122.45.
Wall Street rebounds as trade tensions ease
After a sharp sell-off earlier in April triggered by a wave of new tariffs introduced by President Donald Trump, U.S. stocks staged a notable comeback. The recovery followed a series of trade de-escalation agreements with several key international partners, leading to reduced tariff threats.
Monthly performance: steady gains across major indexes
The S and P 500 gained 2.17 percent over the month, while the Nasdaq advanced 3.7 percent. The Dow Jones posted a slight increase of 0.08 percent. All three major indexes logged their third consecutive month of growth, signaling continued investor confidence.
Drugmakers hit by pressure from the administration
Pharmaceutical stocks fell sharply following an announcement from the White House. President Trump sent letters to the heads of 17 major drug manufacturers, urging immediate action to lower the cost of prescription medications in the United States. The NYSE Arca Pharmaceutical Index dropped 2.9 percent, marking its steepest decline since May 14 and its fourth straight session in the red.
Asian markets dip amid tariff shock
Asian equities tumbled on Friday in reaction to a fresh round of U.S. import duties targeting dozens of global partners. Market participants are now closely watching upcoming U.S. employment data, which could heavily influence whether the Federal Reserve moves forward with a potential rate cut next month.
The new tariff map: who's affected and by how much
Late Thursday, President Trump signed a directive imposing a wide array of import tariffs ranging from 10 percent to 41 percent. The breakdown includes:
- India: 25 percent
- Taiwan: 20 percent
- Thailand: 19 percent
- South Korea: 15 percent
US ramps up trade pressure: higher tariffs for Canada
The United States has raised tariffs on Canadian imports from 25 to 35 percent, targeting products not covered by the trilateral USMCA agreement with Mexico and Canada. Meanwhile, Mexico was granted a 90-day grace period before the new tariffs take effect, allowing time for broader trade negotiations.
Taiwan takes a measured stance
Taiwanese President Lai Ching-te commented that the newly imposed tariff rate is temporary in nature and may be revised downward once a bilateral agreement is reached.
Asian stocks stumble as week closes on a low note
Asian markets ended the week in the red. The MSCI broad index for the Asia-Pacific region, excluding Japan, dropped by 0.7 percent, bringing the week's total losses to 1.8 percent.
South Korea's KOSPI index posted the sharpest decline, falling 3 percent. Taiwan's main index slid 0.9 percent. Japan's Nikkei dropped by 0.4 percent. China's CSI 300 remained flat, while Hong Kong's Hang Seng rose slightly by 0.2 percent.
Market pressure spreads: futures dip after Amazon disappointment
Futures on Europe's EUROSTOXX 50 index dipped 0.2 percent. US stock futures followed suit, with both the Nasdaq and S and P 500 contracts falling by the same margin. The downturn came after Amazon released weaker-than-expected earnings, sending its stock tumbling 6.6 percent in after-hours trading.
Apple bucks the trend with upbeat forecast
In contrast, Apple delivered strong quarterly results and projected revenue well above analysts' expectations. The tech giant cited early iPhone purchases by consumers trying to avoid upcoming tariffs. Following the announcement, Apple shares rose 2.4 percent in extended trading.
Canadian dollar shrugs off tariff headlines
The Canadian dollar showed little reaction to the latest tariff developments. The currency had already weakened by about one percent this week, reaching its lowest level in ten weeks.
Yen slips as Bank of Japan sticks to cautious tone
The Japanese yen suffered the most overnight. The US dollar climbed 0.8 percent to 150.7 yen, its highest level since late March. Although the Bank of Japan left interest rates unchanged and raised its short-term inflation outlook, Governor Kazuo Ueda delivered a more dovish message than markets had expected, softening investor sentiment.
Oil prices steady after prior drop
Crude prices held mostly flat following a one percent decline in the previous session. US benchmark WTI edged up 0.1 percent to 69.36 dollars per barrel, while Brent rose 0.2 percent to 71.84 dollars.
Gold retreats slightly
Spot gold prices dipped modestly, settling at 3286 dollars per ounce.
