On May 1, 2025, Wall Street displayed a mixed performance, influenced by a combination of strong corporate earnings and ongoing trade tensions. The S&P 500 rose 1.53%, closing at 5,654.30, while the Dow Jones Industrial Average gained 0.95%, ending at 41,054.21. The Nasdaq Composite led the gains, climbing 2.65% to 17,909.19. These positive movements were largely driven by robust earnings reports from major technology companies. Microsoft, for instance, saw its stock price surge by 9.2% in after-hours trading, fueled by a 13% increase in revenue and a significant profit boost, both surpassing Wall Street expectations. Similarly, Meta Platforms, the parent company of Facebook and Instagram, reported strong advertising revenue, bolstered by artificial intelligence tools, leading to a 6.4% rise in its stock price.
However, the market's optimism was tempered by concerns over escalating trade tensions and mixed economic indicators. The Federal Reserve's recent decision to cut interest rates for the third time this year, while aimed at supporting the slowing job market, also raised questions about the underlying economic health. Additionally, the Fed's projection of only two more rate cuts in 2025, down from the previously expected four, suggested a more cautious approach to monetary policy. These factors contributed to a sense of uncertainty among investors, highlighting the delicate balance between corporate earnings growth and broader economic challenges.