The S&P 500 futures have risen by 124 points, marking a 2.4% increase. Nasdaq 100 futures are up 504 points, a 2.8% increase. Meanwhile, Dow Jones Industrial Average futures have gained 681 points, a 1.7% rise.
There is a strong positive trend in early trading. The market is set to continue Tuesday's rally after President Trump assured he won't remove Fed Chair Powell. He also mentioned that trade negotiations with China are progressing, which could lead to significant tariff reductions if a deal is reached.
Mega caps and tech stocks are leading the gains before the market opens. Tesla (TSLA, Financial) is performing well despite missing earnings and revenue expectations for Q1. CEO Elon Musk plans to spend less time on government issues.
Treasury yields have dropped sharply, influenced by President Trump's comments. The 10-year yield has decreased by nine basis points to 4.30%.
The weekly Mortgage Applications Index fell 12.7% following an 8.5% drop the previous week.
Today's News
Tesla (TSLA, Financial) saw its stock rise despite a disappointing Q1 report, as CEO Elon Musk reassured investors about the company's focus on autonomous and AI initiatives. Musk's commitment to reduce his governmental duties also buoyed investor sentiment, leading Wedbush Securities to raise its price target for Tesla to $350. This comes amid Tesla's strategic vision to navigate rapidly changing trade policies and political landscapes.
ASML Holding (ASML, Financial) announced a significant share buyback program, aiming to repurchase up to 10% of its issued share capital by October 2026. This move, alongside a proposed final dividend payment and plans for strategic alliances, boosted ASML's shares by 3.81% in pre-market trading. The buyback is contingent on supervisory board approval, reflecting confidence in the company's long-term growth potential.
Amazon (AMZN, Financial) is facing hurdles with its Project Kuiper satellite production, with delays pushing initial production to late 2024. The project, aimed at competing with SpaceX's Starlink, is crucial for expanding broadband connectivity. Production delays, coupled with potential regulatory extensions, highlight challenges in meeting ambitious timelines.
Salesforce (CRM, Financial) and Microsoft (MSFT, Financial) were highlighted by BofA Securities as resilient picks in both risk-on and risk-off environments. These companies, alongside others like Intuit (INTU, Financial) and Oracle (ORCL, Financial), are preferred for their strong business models and free cash flow generation. The focus remains on stocks with robust enterprise and SMB market exposure.
European software giant SAP (SAP, Financial) experienced an 8% pre-market surge following strong Q1 results and analyst endorsements. Jefferies maintained a Buy rating, emphasizing SAP's durable cloud and software growth. The company's consistent performance amidst an uncertain macro environment reassures investors of its strategic direction.
Vertiv (VRT, Financial) reported impressive Q1 results, with a significant swing to profitability and a 24% revenue increase. The company's strong performance, driven by AI deployment scaling and robust demand in the data center market, led to an 18.2% pre-market stock rise. Vertiv also revised its full-year revenue forecast upwards, reflecting ongoing market strength.
Adobe (ADBE, Financial) expanded its partnership with the NFL, integrating AI-powered fan experiences ahead of the 2025 NFL Draft. This collaboration aims to enhance personalized fan interactions across NFL channels, utilizing Adobe's technological capabilities to create engaging content for sports enthusiasts.
Intel (INTC, Financial) is reportedly set to cut over 20% of its workforce to streamline operations and revive its competitive edge. Under new CEO Lip-Bu Tan, this restructuring marks Intel's latest effort to regain market leadership and enhance its engineering-driven culture amid industry challenges.
Apple (AAPL, Financial) and Meta Platforms (META) faced significant fines from the European Commission for breaching the Digital Markets Act. The penalties highlight ongoing regulatory scrutiny and the challenges U.S. tech giants face in navigating complex international compliance landscapes.
GuruFocus Stock Analysis
- Intel Plans Massive Job Cuts, Stock Climb Ahead of Q1 Results by Nauman khan
- Dow Rockets 1,000 Points After Trump Walks Back Powell Remarks, Eases Tariff Talk by Moz Farooque
- Meta Stock Jumps Despite Explosive Claims of Instagram Sabotage by Nauman khan
- Tesla Soars After CEO Musk Says He'll Ditch Politics to Focus on EVs by Nauman khan
- Du Signs $544 Million Data Center Deal With Microsoft to Expand UAE's Digital Infrastructure by Faizan Farooque
