Major U.S. tech names reported their first-quarter results Thursday, offering markets something more to chew on besides all the tariff-related news.
U.S. stock indexes rallied: the Dow regained the 40,000 level and the S&P500 and Nasdaq posted gains of over 2%.
While tech appears to be at the forefront of investors’ mind for now, tariffs and trade tensions still lurk in the shadows, with Intel CFO David Zinsner warning that tariffs and retaliation from other countries has increased the likelihood of a recession.
Also, the optimism that both the U.S. and China were going to de-escalate the trade war has been watered down by China saying there were no ongoing trade talks with the U.S.
U.S. President Donald Trump refuted China’s claims, saying that trade talks were underway, but declined to reveal any details on the nature of the talks, adding to the uncertainty around trade.
Oh well, seems like it’s a case of he said, she said — only at the highest levels of diplomacy between the world’s largest economies. That’s got to keep markets on tenterhooks.
— Lim Hui Jie
What you need to know today
Alphabet shares climb after better than expected results
Alphabet, the parent company of Google and YouTube, reported stronger-than-expected first-quarter growth on Thursday after the bell. Alphabet’s search and advertising units are still showing strong growth despite AI competition heating up, according to its first-quarter earnings report. The company’s overall revenue grew 12% year-over-year, higher than the 10% Wall Street expected. Shares rose more than 5% in after-hours trading.
Intel also posts results beat, but warns of tariff impact
Intel reported first-quarter results Thursday that beat analysts’ estimates, but also issued disappointing guidance. Second-quarter revenue will come in below estimates due to elevated uncertainty driven by the macro environment, the company warned. Separately, Intel CFO David Zinsner said President Donald Trump’s tariffs and retaliation from other countries had increased the likelihood of a recession.
Trump asserts trade talks with China are underway
U.S. President Donald Trump on Thursday refuted China’s claims that there were no ongoing trade discussions between Beijing and Washington. “They had a meeting this morning … It doesn’t matter who ‘they’ is. We may reveal it later, but they had meetings this morning, and we’ve been meeting with China,” Trump told reporters. The statement followed China’s denial of any talks with the U.S. and calls for abolishing “unilateral” tariff measures for resolving trade issues.
South Korea calls for ‘calm, orderly’ talks with the U.S.
South Korea has asked for “calm” and “orderly” discussions with the U.S. on trade issues, as Asia’s fourth largest economy reportedly seeks to work out a deal with the U.S. by July to avoid tariffs. According to South Korean media outlet Yonhap, South Korean Finance Minister Choi Sang-mok told reporters that further talks will focus on four categories: tariff-and non-tariff measures; economic security; investment cooperation; and monetary policies.
Tech gains power markets
Stocks popped Thursday thanks to strong gains in megacap tech names. The S&P 500 ended up 2.03%, while the tech-heavy Nasdaq Composite added 2.74%. The Dow Jones Industrial Average lagged the other two indexes but still added 1.23%, and retook the 40,000 mark for the first time since April 15. In Asia, markets rose, with Japan’s Nikkei 225 up almost 2% and leading gains.
[PRO] The Mag 7 isn’t so mighty anymore
The market’s leading tech stocks don’t hold the same sway they once did, and that may change the ingredients needed for a Wall Street rally. The Roundhill Magnificent 7 ETF (MAGS) — which holds shares of the Mag 7 in roughly equal measure — is now down 17% for the year. That’s more than double the drop of almost 7% in the S&P 500.
And finally…
A drone view shows a cargo ship at Kwai Tsing Container Terminals in Hong Kong, on April 16, 2025.
Tyrone Siu | Reuters
China denies tariff talks are underway
China on Thursday said that there were no ongoing discussions with the U.S. on tariffs, despite indications from the White House this week that there would be some easing in tensions with Beijing.
“At present there are absolutely no negotiations on the economy and trade between China and the U.S.,” Ministry of Commerce spokesperson He Yadong told reporters in Mandarin, translated by CNBC. He added that “all sayings” regarding progress on bilateral talks should be dismissed.
