S&P 500 futures experienced an uptick on Thursday evening, building on Wall Street's momentum from the previous three days of gains. This positive trend was further fueled by the latest quarterly results from Alphabet, the parent company of Google. Futures associated with the S&P 500 rose by 0.3%, while Nasdaq-100 futures saw an increase of 0.4%. In contrast, futures linked to the Dow Jones Industrial Average remained relatively stable, hovering around the flatline.
In after-hours trading, Alphabet's shares surged by approximately 5%. The company reported earnings that exceeded expectations on both the top and bottom lines for the first quarter, solidifying its position as a key player in the tech sector. Conversely, Intel faced a significant decline, with shares falling more than 5% after the company provided disappointing guidance and announced plans to cut operational and capital expenses.
The market's positive trajectory follows a strong closing for the three major averages during Thursday's session, marking a three-day winning streak. This upward movement was largely supported by gains in megacap technology stocks, which had previously suffered due to investor concerns over escalating global trade tensions. The market has been navigating a trading range since the initial shockwave caused by President Donald Trump's announcement of reciprocal tariffs on April 2, as investors anticipate clarity in negotiations with critical trading partners like China.
On Thursday, China announced that there were currently no discussions underway regarding tariffs. Ministry of Commerce spokesperson He Yadong urged for the cancellation of unilateral measures imposed on China. This statement comes in light of recent signals from the White House indicating a potential easing of its stance on the existing tariffs, which currently sit at a total of 145% on imports from China. Earlier this week, Trump stated that the tariff rates would be significantly reduced, although he clarified that they would not drop to zero.
Anthony Saglimbene, chief market strategist at Ameriprise, noted, "I think that really all the market needed was just a little spark to kind of move it off some of these depressed levels, and I think that's what we're seeing." He cautioned that the market may still experience a period of choppiness in trading, particularly as the focus shifts to upcoming earnings reports from major tech companies, which are expected to significantly influence the direction of the major averages.
As of Thursday's close, the leading indexes are on track to finish the week on a positive note. The S&P 500 has achieved a week-to-date gain of nearly 4%. Meanwhile, the Dow Jones Industrial Average and Nasdaq Composite have risen more than 2% and over 5%, respectively, throughout the week. On Friday, several other prominent companies, including AutoNation, Colgate-Palmolive, and AbbVie, are scheduled to report their quarterly results before the market opens, adding further anticipation to the trading landscape.
