- S&P 500 futures remain flat as investors digest mixed Big Tech earnings.
- Trump’s visit to the Federal Reserve marks a rare political move.
- European and Chinese markets rally on trade optimism and strong sector performance.
The U.S. stock market opened cautiously on Thursday as investors reacted to a blend of upbeat and disappointing earnings from tech giants. Alphabet’s better-than-expected results drove its stock up nearly 4%, while Tesla dropped over 6% after a continued decline in automotive revenue.
In a politically charged move, President Donald Trump is scheduled to visit the Federal Reserve—marking the first presidential visit to the central bank in nearly two decades.
Tech Earnings Jolt Markets as Trump’s Fed Visit Sparks Policy Debate
European equities reached a six-week high, driven by strong earnings from key banks like Deutsche Bank and BNP Paribas. The STOXX 600 climbed 0.5%, while Germany’s DAX rose 0.9%. Investor confidence was buoyed by speculation that the EU and U.S. are nearing a trade deal, avoiding more severe tariffs and bringing relief to several industrial sectors.
China’s markets also witnessed a boost, with the Shanghai Composite hitting a 3.5-year high. Gains were driven by increased demand for rare earth minerals and a rebound in tourism. The broader rally was underpinned by a sense of stability as trade relationships appeared to shift from confrontation to compromise.
On the corporate front, global earnings painted a mixed picture. While tech leader Alphabet exceeded expectations, STMicroelectronics shocked investors with its first quarterly loss in over ten years, plunging more than 10%. Nestlé, another major player, saw its stock fall over 3% after announcing a strategic review of its vitamins business.
With the European Central Bank expected to hold interest rates steady at 2% following several consecutive cuts, all eyes are on how monetary policy aligns with improving business conditions. Eurozone service activity picked up, and manufacturing showed early signs of stabilization—hinting at a potential economic turnaround if trade uncertainty continues to fade.
Markets remain at a crossroads, balancing earnings volatility with global trade optimism. As political and monetary developments unfold, investor focus sharpens on clarity and consistency.
“Markets hate uncertainty, but they love a comeback.” — Peter Lynch
