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Wall Street climbs as AI leaders power tech rebound

Wall Street kicked off May with renewed optimism, fuelled by robust earnings from major tech players. The Dow Jones Industrial Average rose 83.60 points, or 0.21%, to close at 40,752.96. The S&P 500 gained 0.63% to finish at 5,604.14, and the Nasdaq Composite led the way, climbing 1.52% to 17,710.74—fully reversing the slide it experienced through April.
The rally follows a volatile April, when markets were roiled by President Trump’s “Liberation Day” tariff announcement. The S&P 500 at one point slipped into bear market territory, down over 20% from February’s record high, before recovering to close the month 9% below its previous peak. The Dow ended April down 3.2%, while the S&P lost 0.8%. The Nasdaq, however, eked out a 0.9% monthly gain.
Microsoft and Meta rekindle the AI trade
Confidence returned in force after Microsoft and Meta Platforms both reported earnings that beat expectations. Microsoft surged 7.6% after posting strong cloud growth and signalling that capital spending would rise to expand AI data centre capacity. Meta climbed 4.2%, with CEO Mark Zuckerberg noting the company is “well positioned to navigate macroeconomic uncertainty.”
The information technology sector outperformed, jumping over 2%, as investors bet that AI-related spending will remain resilient—even in the face of slowing growth and rising trade barriers.
Amazon and Apple face tariff headwinds
In after-hours trading, Apple slipped nearly 4% despite beating profit estimates, with CEO Tim Cook warning that upcoming tariffs will increase costs by US$900 million this quarter alone. Revenue from China declined to US$16 billion, falling short of analyst expectations.
Amazon also disappointed with a weaker-than-expected profit forecast. The company projected Q2 operating income between US$13 billion and US$17.5 billion, below the US$17.8 billion average estimate. Analysts noted concerns about retail margins under pressure from tariff-related costs.
Economic signals mixed ahead of key jobs report
Economic data was less reassuring. Initial jobless claims rose to 241,000, well above the 225,000 forecast, adding to worries after Wednesday’s 0.3% GDP contraction—the first negative quarter since early 2022.
All eyes now turn to Friday’s nonfarm payrolls report, as investors weigh whether economic softness will begin to undercut market momentum.
Commodities and the dollar
WTI crude is trading 1.77% higher at US$59.24 a barrel on the back of Trump’s sanctions threat against companies that purchase Iranian oil.
Spot gold is trading 0.05% higher at US$3,240.83 an ounce.
One Australian dollar is buying 63.84 US cents.

Futures
The SPI futures are pointing to a 32 point fall.