🇺🇸 U.S. Market and Economy Briefing – Thursday, May 1, 2025 (Trading Day)
Tech Rally, Amazon Earnings, and Economic Concerns
📈 Major Index Closings
- Nasdaq: 17,710.74 (+1.52%)
- S&P 500: 5,604.14 (+0.63%)
- Dow Jones: 40,752.96 (+0.23%)
- USD/KRW Exchange Rate: 1,437.50 (+0.24%)
On the first trading day of May, U.S. stock markets posted gains led by strong performances in the tech sector. The Nasdaq surged more than 1.5%, reaching its highest level since "Liberation Day," while both the S&P 500 and Dow extended their respective 8-day winning streaks.
📰 Top 6 Key Issues of the Day
1. Microsoft and Meta Surge on Strong Earnings and AI Investment
Both Microsoft and Meta exceeded expectations in their earnings reports, with each stock rising more than 6%. Investors responded positively to the companies' commitment to expand AI infrastructure investment.
2. Q1 GDP Contracts by 0.3% — Trade Tensions Deepen
The U.S. Department of Commerce announced that GDP declined by an annualized 0.3% in Q1, marking the first contraction since 2022. A surge in imports following President Trump’s "Liberation Day" tariffs was cited as a key driver.
3. Apple Beats Expectations but Shares Dip
Apple reported stronger-than-expected revenue and profits for Q2. However, shares dropped in after-hours trading as Investors appear to reflect weak service sales and concerns about future demand slowdowns and supply chain issues.
4. Manufacturers Feel the Squeeze from New Tariffs
American manufacturers are facing rising costs due to Trump’s renewed tariff policies, especially as raw material prices, such as metals, climb. This has begun to erode profit margins and operational efficiency.
5. Trump Signs Strategic Mineral Pact with Ukraine
President Trump signed a strategic mineral cooperation agreement with Ukraine, aiming to strengthen economic ties and reduce dependence on adversarial nations. This move is also interpreted as geopolitical support for Ukraine amid ongoing tensions.
6. Amazon Posts Strong Q1 Earnings but Forecast Disappoints
Amazon reported Q1 revenue of $155.7 billion and EPS of $1.59, beating market expectations. Ad revenue jumped 19% to $13.9 billion. However, a slightly soft Q2 outlook led to a 4% decline in after-hours trading.
💡 Investment Strategy Suggestion
U.S. equity markets continue to rally on tech momentum and optimism around AI expansion. However, macroeconomic risks such as slowing growth and trade tensions remain in the background. Investors are advised to monitor upcoming employment data and the Fed’s policy direction closely while maintaining a balanced, risk-managed portfolio strategy.MarketWatch