Tech Stocks Soar, Wall Street Ends Week in the Green for Third Straight Day
The US stock market continued its strong recovery on Thursday, led by a strong rally in tech giants. This was the third consecutive session of gains, reflecting investor sentiment that remains optimistic despite mixed signals from the global trade environment.
Tech Leads the Market
The Nasdaq Composite – which is heavily concentrated in technology stocks – surged 2.74%, while the S&P 500 index recorded a 2.03% increase. The Dow Jones Industrial Average, although lagging behind, still rose 1.23%, despite the negative impact of IBM shares, which fell more than 6% after the company lost many government contracts due to budget cuts.
Key stocks such as Nvidia, Meta, Amazon, Tesla and Microsoft all rose sharply, helping to push the tech sector higher for the third consecutive session. This development reflects investors' positive expectations for profit growth in this group of stocks, especially as earnings reports approach.
Global Trade: Still Unknown
Despite the market recovery, investors are still wary of uncertain developments on the trade front. China's Ministry of Commerce recently denied the existence of negotiations with the US, while affirming its demand that Washington remove all current tariffs.
On the other hand, the White House seems to be looking to cool tensions. US Treasury Secretary Scott Bessent hinted at the possibility of reaching a trade deal with South Korea next week, making the market somewhat more confident about the prospect of an improvement in the regional trade environment.
Analysts Remain Cautious
Despite the significant rebound, some experts remain skeptical about the uptrend's ability to sustain. Ross Mayfield, an analyst at Baird, said:
"We're seeing more technical rallies than a sustained uptrend. The macro factors are not yet clear enough to reinforce confidence in the market."
Since April 2, when the Trump administration announced the new tariffs, the S&P 500 is still down 3.5%, the Dow Jones Industrial Average is down 5.3% and the Nasdaq is down 2.8%, indicating that the market remains under significant pressure.
Next in Focus: Earnings
Investor sentiment is now turning to upcoming earnings reports from big names like Alphabet (Google) and Intel. While not directly affected by trade tensions, analysts will be closely watching management's statements on the outlook in the new tariff environment.
In particular, Intel’s results will mark the debut of new CEO Lip-Bu Tan, who is expected to lead the company into a strategic transformation phase.
Conclusion:
In the context of economic and political variables that are still unclear, money flows are still looking to technology stocks as a growth anchor. However, to maintain the upward momentum, the market needs clearer positive signals from both the trade front and actual business results.
