Big Tech Earnings Spark Market Rally Amid Tariff Concerns

U.S. stock markets are rebounding as robust earnings from Microsoft and Meta Platforms boost investor confidence, helping to offset recent declines triggered by tariff-related uncertainties. On May 1, 2025, the S&P 500 climbed 1.2%, the Nasdaq surged 2.2%, and the Dow Jones rose 0.6%.

Microsoft reported a 16% year-over-year revenue increase, driven by strong performance in its cloud computing and AI services, including Azure and Microsoft 365. Meta exceeded expectations with earnings per share of $6.43 and revenue reaching $42.3 billion, largely fueled by growth in its advertising sector and strategic AI investments.

These upbeat results are helping to ease investor concerns over the broader economic impact of new U.S. tariffs on Chinese goods. Attention now turns to Amazon and Apple, both set to release their earnings reports later today. Analysts expect Amazon to post around $144 billion in revenue for Q1 2025.

Still, not all corporate news is positive. General Motors revised its annual outlook downward due to potential tariff costs up to $5 billion, and McDonald’s reported a 3.6% drop in U.S. quarterly sales, citing economic pressure.

As more earnings and economic indicators roll in, investors remain cautiously optimistic about the resilience of the U.S. market.#BTCRebound