New Delhi , 2 May (H.S.): U.S. stocks saw a positive trend, spurred by solid earnings from major tech firms, easing fears over economic instability and trade tensions impacting AI development. The Dow Jones Industrial Average futures jumped 0.82% or 350+ points while the Nasdaq 100 futures advanced 0.32% nearing levels not seen since early April’s tariff announcements.This rally was fueled by better-than-expected quarterly results from Meta Platforms, alleviating market concerns about a potential slowdown in AI investments. CEO Mark Zuckerberg’s confidence in navigating economic uncertainties helped restore investor trust.
Meanwhile, Airbnb’s first-quarter results met expectations but offered disappointing guidance for Q2, projecting revenues slightly below estimates. The stock market welcomed May positively, as tech firms reignited interest in AI. On May 2, Amazon announced a 19% growth in ad revenue, exceeding projections and reinforcing its position as the third-largest player in the digital ad market.
In corporate news, Kohl’s dismissed CEO Ashley Buchanan over inappropriate vendor dealings. Wall Street enjoyed a rally with tech earnings countering earlier selling trends, while U.S. treasuries fell after positive factory data reduced speculation on Federal Reserve interest rate cuts.
Traders are now anticipating about 91 basis points of easing from the Federal Reserve this year, a reduction from an earlier estimate of 107 basis points, with a quarter-point rate cut expected by July. In agriculture, there is a continued decline in farm machinery sales due to President Trump’s tariffs affecting crop demand. Major tractor manufacturers CNH Industrial NV and AGCO Corp. reported lower sales, yet AGCO’s shares jumped 13% and CNH’s rose 8.7%. This is notable despite Deere & Co.’s 4.7% increase ahead of its May results.
Meanwhile, Bitcoin is approaching the $100,000 threshold, recently peaking after renewed investor enthusiasm, rising by 3.1% to $97,483, while Dogecoin and Ether also experience gains. In commodity trading, copper prices are increasing, driven by improving US trade negotiation optimism, with futures exceeding $9,200 a ton after a significant drop last month. The US saw a contraction in the first quarter amidst global trade tensions, and a potential study on tariffs for copper imports is underway.
In stock market updates, Eli Lilly’s shares fell nearly 11% after announcing a reduced profit forecast due to charges linked to a cancer treatment deal, despite reporting better-than-expected earnings for the first quarter.
Lastly, US oil futures rose 1.8% to $59.24 per barrel, buoyed by Trump’s threats of secondary sanctions against Iranian oil purchases.
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Hindusthan Samachar / Jun Sarkar
