ADDX GO Market Morning Wrap - 2nd May
Stock Market
On Thursday, Eastern U.S. Time, the three major U.S. stock indexes all closed higher. The Dow Jones Industrial Average and the S&P 500 Index rose for the eighth consecutive trading day. The strong earnings reports from Microsoft and Meta alleviated concerns about a slowdown in artificial intelligence spending.
The performance of large technology companies largely contributed to the market's optimism. Both Microsoft and Meta's earnings reports exceeded Wall Street's expectations. Additionally, discussions about tariffs have significantly decreased.
At the close of trading, the Dow Jones Industrial Average increased by 83.60 points, or 0.21%, to 40,752.96; the Nasdaq Composite Index increased by 264.40 points, or 1.52%, to 17,710.74; and the S&P 500 Index increased by 35.08 points, or 0.63%, to 5,604.14.
Most large technology stocks rose. Microsoft soared by more than 7%, Meta rose by more than 4%, Amazon rose by more than 3%, NVIDIA rose by more than 2%, Google rose by more than 1%, and Apple and Netflix had slight increases; Tesla and Intel had slight declines. Eli Lilly fell by more than 11%, suffering its largest single-day decline since 2008.
It is worth noting that Apple's stock price fell by more than 4% during the after-hours trading. Apple's earnings per share (EPS) for the second fiscal quarter were $1.65, compared to analysts' expectations of $1.62. The revenue for the second fiscal quarter was $95.36 billion, compared to analysts' expectations of $94.59 billion.
Key Events
- The U.S. Confirms that Auto Parts from Canada and Mexico are Exempt from Tariffs: The U.S. Customs and Border Protection confirmed on May 1, local time, that auto parts manufactured in Canada and Mexico, which are part of the United States-Mexico-Canada Agreement (USMCA), will be exempt from a 25% tariff that is set to take effect on May 3.
- Apple's Second Fiscal Quarter Results Slightly Exceed Expectations, Warns that Tariffs Will Increase Costs: After the U.S. stock market closed on Thursday (May 1), Apple released its financial results for the second fiscal quarter of 2025. The earnings report showed that in the second fiscal quarter ending at the end of March, Apple's revenue and profit both exceeded Wall Street's expectations.However, the revenue from the Greater China region fell short of expectations, and tariffs will increase costs, causing the company's stock price to drop by 4% in after-hours trading.
- The U.S. Considers Relaxing Restrictions on NVIDIA's Chip Exports to the UAE: According to informed sources, the United States is considering relaxing restrictions on NVIDIA's chip exports to the United Arab Emirates. Donald Trump may announce the launch of a bilateral chip trade during his upcoming trip to the Gulf region.
Forex & Commodities
The settlement price of COMEX gold futures fell by $96.9, or 2.92%, to $3,222.20 per ounce.
The price of light crude oil futures for delivery in June on the New York Mercantile Exchange rose by $1.03 to close at $59.24 per barrel, an increase of 1.77%; the price of London Brent crude oil futures for delivery in July rose by $1.07 to close at $62.13 per barrel, an increase of 1.75%.
The U.S. Dollar Index rose on May 1. The U.S. Dollar Index, which measures the value of the U.S. dollar against six major currencies, rose by 0.78% on that day and closed at 100.246 in the late trading session of the foreign exchange market.
Key Events
- Trump Says He Will Ban Iranian Oil Buyers from Doing Business with the U.S: U.S. President Donald Trump posted on social media on May 1 that any country or individual that purchases oil or petrochemical products from Iran will face U.S. sanctions and will be prohibited from doing business with the United States.
Cryptocurrency
As the risk appetite in the financial markets warmed up again, Bitcoin once again approached the $100,000 mark.
Bitcoin rose 2.6% to $96,563, and the 24-hour trading volume of this cryptocurrency rose 13% to $32.92 billion.
Ethereum (ETH-USD), the second-largest digital asset by market value, increased 3.7% to $1,852.
XRP (XRP-USD) added 1.3%, BNB (BNB-USD) gained 0.5%, and Solana (SOL-USD) rose 3.5%.
Dogecoin (DOGE-USD) surged 5.6%, while Cardano (ADA-USD) added 3.6%.
The total market value of the cryptocurrency industry rose 2.8% in the past 24 hours to $3.01 trillion, with the trading volume up 2.1% to $83.17 billion.
Key Events
- MicroStrategy's First Quarter Results Fall Short of Expectations, Says It Will Continue to Buy Bitcoin: MicroStrategy, the publicly traded company that holds the most Bitcoin globally, said on Thursday that it will continue to buy Bitcoin and increase its cryptocurrency reserves, even though the company's quarterly results were well below Wall Street's expectations.
Market Events and Most Anticipated Earnings Releases
