Here's the Dish on Wall Street: Tech Stocks Shining Despite Trade Tensions
Pending determination on launching the process by the Commission
It's a see-saw game between the USA and China when it comes to trade discussions. There's a looming uncertainty, but Wall Street ain't backing down, especially when it comes to tech stocks.
In the midst of trade talks, tech stocks are lighting up Wall Street, with the Nasdaq Composite bouncing back from a rough start to the year. Fear not, the latest tariff announcements from President Trump didn't ruffle too many feathers this time. But, will the USA and China finally put the kibosh on this trade debacle? Both nations have been trading blame over undercutting already-made agreements. Keep your eyes on that, chum.
Meanwhile, the Trump administration is urging trading partners to spit out their best offers within five weeks for those trade negotiations. According to market strategist, Michael Brown at Pepperstone, "The jury's still out on how this will all play out, but at least on the China front, it seems like a call at the leadership level might be necessary to break the impasse."
White House spokeswoman, Karoline Leavitt, hinted at a phone call between Presidents Trump and Xi Jinping coming "very soon," although she didn't drop a specific date.
The Dow Jones Index scored a 0.5% gain to 42,520 points, and the S&P 500 closed 0.6% higher. The Nasdaq Composite trumpeted a 0.8% rise. Approximately 1,916 companies saw advances while 853 took a dive.
Economic Blues
The Organisation for Economic Co-operation and Development (OECD) is worried. They've lowered their estimates for global economic growth due to increased trade barriers and lingering uncertainty. The USA, particularly, feels the pinch. China has shared some worried economic data, too.
US industrial orders tanked harder than expected in April, but the number of job openings did inch up slightly in April.
On the bond market, yields held steady and bounced back from initial modest losses. The yield on ten-year US Treasury notes remained at 4.46%. UBS predicts rising yields and a drop in US yields due to growth risks, although analysts don't expect the yield to dip below the 4% mark in the near future for the ten-year maturity.
Politics A-Go-Go
Elon Musk, never one to hold back, called Trump's "Big Beautiful Bill" a "disgusting abomination," after hitting a six-week low.
The dollar rallied strongly after a weak spell, with the dollar index skyrocketing 0.6%. The greenback was also boosted by the euro's doldrums. The euro was mired by lower-than-expected inflation data, leading traders to expect an ECB rate cut on Thursday, potentially followed by further rate cuts.
Gold: Cheaper but Safe
The almighty dollar weighed on the gold price. The troy ounce lost 0.8% to $3,353, though it remained close to recent multi-week highs due to ongoing trade tensions and gold's role as a "safe haven."
Despite gloomy economic prospects, oil prices kept trying. Notations for Brent and WTI escalated by up to 0.9%. Ongoing uncertainty in Ukraine made additional Russian supply less likely, and US Congress is working on new Russia sanctions that could impact the oil sector.
Tech Stocks Scorching
Tech stocks have become the new hot commodity. Shares of Nvidia, a heavyweight in AI, climbed 2.8%. Super Micro Computer saw a 4.8% gain, while Micron Technology improved by 4.2% after the chipmaker sent out the first sample of a new chip designed for AI applications in smartphones.
Walt Disney gained 0.6%, as the entertainment conglomerate announced job cuts in various departments to streamline operations. Dollar General spiked 15.9%, after raising its outlook. MoonLake Immunotherapeutics rose 18%, following whispers of takeover talks with Merck & Co.
Sources: ntv.de, toh/DJ | Wall Street: Details | Trade Agreement: Overview
The Commission is monitoring the surge in tech stocks, a trend that has been observed on Wall Street, despite the ongoing trade tensions between the USA and China. In this context, the progress of AI-focused companies like Nvidia, Super Micro Computer, and Micron Technology is attracting significant attention.
