Wall Street Advances for Third Straight Session on Easing Trade Tensions
U.S. equities extended their winning streak Thursday, marking a third consecutive day of gains as signals emerged that the Trump administration may be softening its stance toward China in the ongoing trade conflict. President Donald Trump has aggressively targeted China with tariffs, hiking levies on imports from the world’s second-largest economy by at least 145%. In response, Beijing has retaliated with a 125% duty on American goods.
China’s Commerce Ministry has called for a full rollback of what it labeled “unilateral” U.S. tariffs. According to media reports, the Trump administration is considering reducing the elevated tariff rates. U.S. Treasury Secretary Scott Bessent also weighed in, stating that the current tariff levels are “unsustainable.”
Corporate Impacts and Stock Highlights
A number of major companies have adjusted or scrapped their financial forecasts due to trade-related uncertainties. Notable names include Procter & Gamble (NYSE: PG), PepsiCo (NASDAQ: PEP), American Airlines (NASDAQ: AAL), and Chipotle Mexican Grill (NYSE: CMG). In contrast, ServiceNow (NYSE: NOW) saw a 15.5% surge in its stock after reporting better-than-expected earnings, driven by strong demand for its AI-powered software solutions.
Meanwhile, China is reportedly exploring tariff exemptions for select U.S. goods. According to Reuters, the Chinese Ministry of Commerce has tasked a team with compiling a list of products that may be eligible for relief. Companies are being asked to identify U.S. imports critical to their supply chains. The Caijing financial magazine noted that up to eight semiconductor-related products could be included—excluding memory chips.
The president of the American Chamber of Commerce in China confirmed that Chinese officials have reached out to U.S. companies, asking which American goods are irreplaceable in their supply chains.
Alphabet Earnings Impress Despite Turbulence
Alphabet (NASDAQ: GOOGL) shares climbed in after-hours trading after the tech giant posted stronger-than-expected Q1 results. Operating income came in at $30.6 billion, surpassing forecasts, while revenue matched analyst expectations. Capital expenditures hit a record $17.2 billion as Alphabet reaffirmed its $75 billion investment plan for AI development in 2025.
Although Alphabet doesn’t expect a direct hit from tariffs, executives warned that the broader economic impact could strain marketing budgets—particularly for advertisers and cloud clients affected by the trade tensions. Some analysts believe the uncertainty may lead to reduced spending in these areas.
Earnings to Watch
Investors are bracing for a flurry of earnings reports set to land before Friday’s opening bell. Noteworthy releases include:
- AbbVie (NYSE: ABBV)
- HCA Healthcare (NYSE: HCA)
- Colgate-Palmolive (NYSE: CL)
- Phillips 66 (NYSE: PSX)
- Centene Corporation (NYSE: CNC)
AbbVie will be closely watched for any commentary on how it plans to navigate potential pharmaceutical tariffs and price regulation. Analysts at Vital Knowledge suggest HCA may face questions regarding the impact of potential Medicaid cuts.
Macro and Market Movements
On the economic calendar, attention turns to the University of Michigan’s final consumer sentiment readings for April, with focus on:
- 1-Year Inflation Expectations
- 5-Year Inflation Expectations
- Overall Consumer Expectations
- Consumer Sentiment Index
All are scheduled for release at 10:00 AM ET. Additionally, the U.S. Baker Hughes Oil Rig Count will be reported at 1:00 PM ET.
Oil prices saw modest gains, but both Brent and WTI crude are on track for nearly 2% weekly losses. Reuters reported that several OPEC members are advocating for accelerated output increases in June, following surprise production hikes in May. OPEC and its allies (OPEC+) are scheduled to meet on May 5 to finalize June output strategy.
Intel: A Mixed Bag
Intel (NASDAQ: INTC) reported better-than-expected Q1 results:
- Adjusted EPS: $0.13 vs. $0.01 est.
- Revenue: $12.67B vs. $12.30B est.
However, guidance disappointed:
- Q2 EPS: -$0.32 vs. -$0.16 est.
- Q2 Revenue: $11.2B–$12.4B vs. $12.84B est.
CEO Pat Gelsinger confirmed a recent meeting with TSMC’s chief to discuss potential collaboration, hinting at a positive relationship that could lead to joint projects.
Tech Index Pushes Toward Reversal
The tech-heavy QQQ index is showing promising signs of a potential trend reversal. Thursday’s close at 467.35 was just below a key resistance level near 468. A breakout above this level could set the stage for further upside toward 480 and ultimately a test of the 200-day moving average around 490. Bulls are aiming to maintain support above 455, with 438 serving as a critical fallback zone. Should that level fail, downside risk toward the 420 range re-emerges.
Market sentiment remains relatively bullish, creating favorable conditions for continued upside and potential short squeezes. The broader market would need to rally about 4.8% to fully reclaim the 200-day moving average.
Gold and Bitcoin Surge
Gold prices remain elevated, trading near record highs in the $3,300–$3,400/oz range. Bitcoin has also made a strong move, climbing back over $90,000 and currently hovering around $94,000. A push toward $100,000 could materialize if equities continue rallying and President Trump avoids inflammatory rhetoric.
Today’s Economic Releases (All Times ET)
- 10:00 AM: Michigan 5-Year Inflation Expectations (April)
- 10:00 AM: Michigan 1-Year Inflation Expectations (April)
- 10:00 AM: Michigan Consumer Expectations (April)
- 10:00 AM: Michigan Consumer Sentiment (April)
- 1:00 PM: U.S. Baker Hughes Oil Rig Count
- 1:00 PM: U.S. Baker Hughes Total Rig Count
Final Note
Today, I’ll be buying INTC LEAPS (Calls) and scouting for more deals. Over the weekend, I’ll publish my top low PE plays for the upcoming week. Let’s keep building out our systems. Catch you all in chat!
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