Alphabet Inc. Class C (GOOG.US, GOOGL.US) and Tesla, Inc. (TSLA.US) lead the increase as US stocks welcome "tech dividend week".
As the global trade situation continues to evolve, investors are still assessing unstable factors, while the strong performance of tech giants injects momentum into the market. The US stock market closed higher on Friday, extending the strong rebound trend for the week.
At a time of constant evolution in global trade tensions, investors continue to assess the unstable factors, while the strong performance of tech giants inject momentum into the market, with the U.S. stock market closing on an uptrend on Friday, continuing the strong rebound trend of the week.
The S&P 500 index rose by 0.74% on Friday, closing at 5,525.21 points; the tech-heavy Nasdaq Composite index showed a more significant increase, rising by 1.26% to close at 17,282.94 points. The Dow Jones Industrial Average lagged behind, up only by 0.05%, a gain of 20 points, closing at 40,113.50 points.
In the tech sector, Alphabet Inc. Class C, the parent company of Alphabet (GOOG.US, GOOGL.US), saw its stock price rise by 1.5% after reporting better-than-expected first-quarter financial results. Tesla, Inc. (TSLA.US) surged by 9.8%, while NVIDIA Corporation (NVDA.US) and Meta each rose by 4.3% and 2.7%, boosting the Nasdaq's sharp rise.
This week, all three major indices recorded gains, with the S&P 500 up by 4.6%, the Nasdaq surging by 6.7%, both marking the second consecutive weekly gain in three weeks. Although the Dow showed a relatively weaker performance, it still recorded a weekly gain of 2.5%. With the strong rebound this week, the Nasdaq has turned slightly positive for April, while the S&P 500 has fallen by approximately 1.5% so far this month and the Dow has dropped by 4.5% since April.
The recent market volatility has been mainly influenced by the trade tension triggered by U.S. President Trump's announcement of tariff policies on April 2. Contradictory information about whether the U.S. and China are currently engaged in trade negotiations has further exacerbated market uncertainty.
Time magazine published Trump's latest statement on Friday, in which he said that if the U.S. imposes high tariffs of 20% to 50% on foreign goods within a year, he would consider it a "total victory." However, he also revealed that multiple trade agreements are expected to be announced in the next three to four weeks.
However, during an interview with reporters on "Air Force One," Trump reiterated that he will not lift the tariffs on China unless they make concessions.
Despite the mixed information, Jay Hatfield, founder and chief investment officer of InfraCap, believes that the worst "tariff panic" in the market is over.
"The confusion about whether the U.S. and China are really negotiating has indeed caused the market to lose some momentum," Hatfield said in an interview, "but we believe the market has passed the peak of 'tariff anxiety' and future trends may lean towards positive."
Hatfield also pointed out that the key drivers of the market in the coming week will be the financial performance of major cloud services providers such as Microsoft Corporation and Amazon.com, Inc., and investors will closely watch whether they can continue the strong performance of tech giants.
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