May 1, 2025

Midday Market Roundup for Thursday, May 1, 2025

Good afternoon. Here are the top four global financial and economic topics shaping markets at midday, Thursday, May 1, 2025:

1. U.S. Stock Markets Rally on Strong Tech Earnings

U.S. equities demonstrated remarkable resilience at midday, propelled by robust earnings from Microsoft and Meta Platforms. Microsoft soared 8.6% after reporting a 13% year-over-year revenue increase, driven by its cloud computing and AI businesses. Meta Platforms, the parent company of Facebook and Instagram, surged nearly 5% after surpassing revenue and profit forecasts, attributing its success to AI-driven advertising gains. The S&P 500 surged 0.9% in midday trading, on track for its eighth consecutive gain, the longest streak since August. The Nasdaq Composite advanced 1.9%, while the Dow Jones Industrial Average gained 205 points, or 0.5% (CNBC; Financial Post; Investopedia; Yahoo Finance).

2. Mixed Corporate Results Highlight Tariff Impacts

While tech-led gains, other sectors showed mixed results as companies navigated ongoing tariff uncertainty. Becton Dickinson cut its earnings outlook, citing tariff headwinds, and its shares fell 15%. Eli Lilly also trimmed its forecast due to higher R&D costs. General Motors expects a $4–$5 billion tariff hit in 2025, though it plans to offset at least 30% of that impact. McDonald’s and other restaurant chains reported weaker U.S. sales, with executives noting consumers are growing more cautious amid economic and inflation worries (Financial Post; CNBC).

3. U.S. Economy Contracts in Q1 as Tariffs Bite

New Commerce Department data show the U.S. economy shrank 0.3% in the first quarter of 2025, the worst performance since early 2022. The contraction was driven by a surge in imports ahead of tariff hikes and a 5.1% drop in government spending. Economists warn that the artificial front-loading of demand could lead to a sharper slowdown in Q2, though some expect a rebound as import activity normalizes. ADP employment data also disappointed, with private employers adding just 62,000 jobs in April, which was well below expectations (CBS News).

4. Global Markets Mixed as Investors Watch Trade and Economic Signals

Global markets were mixed in holiday-thinned trading. Japan’s Nikkei 225 rose 1.1% after the Bank of Japan held rates steady. European and Asian shares were mostly higher, buoyed by optimism that the U.S. may eventually roll back some tariffs after reaching trade deals. In the U.S., Treasury yields fluctuated, with the 10-year yield rising to 4.21% after dipping on weak jobless claims data earlier. Investors remain wary of “stagflation,” a scenario of stagnant growth and persistent inflation-which would limit the Federal Reserve’s policy options (Financial Post).

Sources

Disclosure:
The information provided in this article is for informational purposes only and does not constitute investment, legal, or financial advice. The content is not intended as a recommendation to buy or sell any security or investment product. Readers should consult with qualified financial, legal, and tax advisors before making any investment decisions.

The views and opinions expressed are based on sources believed to be reliable, but their accuracy or completeness is not guaranteed. Any forward-looking statements are based on current expectations and projections, which may change without notice.

Investing involves risk, including the potential loss of principal. Past performance does not guarantee future results. The strategies or investments discussed may not be suitable for all investors.

‍

Midday Market Roundup for Thursday, May 1, 2025

Recent Articles

Let's talk about your future.