US stocks surge on solid earnings and dearth of negative trade headlines
US stocks started out the session flat and proceeded to rise throughout the rest of the day, as sentiment and positioning continued to repair with the absence of any negative headlines on global trade.
The S&P 500 and Russell 2000 rose 2% while the Nasdaq 100 outperformed with a 2.8% gain.
Tech was the standout gainer among S&P 500 sector ETFs, while industrials, materials, and communications services also booked advances of more than 2%. Consumer staples were the worst-performing sector, with disappointing earnings results and a general move away from safer stocks weighing on the group.
ServiceNow and Hasbro led the S&P 500’s gains after topping earnings expectations. ServiceNow benefited from a significant boost in government sales. Meanwhile, Hasbro cashed in on its high-margin game licensing deals. The two were only a few out of a barrage of quarterly results from major companies across industries.
Airlines faced turbulence as American Airlines and Southwest Airlines both pulled their full-year guidance, citing rising costs and tariff uncertainty.
Media giant Comcast posted a strong Q1 earnings beat but saw its stock fall as broadband customer losses had Wall Street rethinking the future of its cable business.
Procter & Gamble shares slid after the consumer staples giant slashed its sales outlook in response to “challenging and volatile” economic conditions and said it planned to raise prices.
Kering shares reversed their losses on the day even as the luxury giant missed first-quarter sales targets and warned of further challenges ahead.
Texas Instruments surged after the chipmaker broke a multiyear streak of declining sales, signaling recovery and growth prospects.
IBM shares fell by the most in nearly a year, despite posting strong Q1 results, as investors fear that Elon Musk-led DOGE inquiries could jeopardize the company’s government contracts.
United Rentals shares soared after the world’s largest equipment company said it would likely benefit from ongoing trade uncertainties.
Outside of earnings… Nintendo surged after preorders for its highly anticipated Switch 2 consoles finally kicked off in the US after a weeks-long delay due to tariffs.
