Major US stock indices advanced on Thursday, with the S&P 500 and Nasdaq Composite reaching new all-time highs. For the month of April, all three major averages posted significant gains. The Dow Jones Industrial Average rose 7.14%; the Nasdaq surged 15.29%, marking its best monthly performance since April 2020; and the S&P 500 climbed 10.42%, achieving its largest monthly gain since November 2020.
At market close, the Dow increased by 790.33 points, or 1.62%, to 49,652.14. The Nasdaq added 219.07 points, or 0.89%, finishing at 24,892.31. The S&P 500 gained 73.06 points, or 1.02%, closing at 7,209.01. Apple (AAPL.US) ended the regular session up 0.44% and saw its shares rise more than 4% in after-hours trading. Alphabet (GOOG.US, GOOGL.US) closed nearly 10% higher, setting a new record high, while Qualcomm (QCOM.US) jumped over 15%. The Nasdaq Golden Dragon China Index increased by 2.1%, with Alibaba (BABA.US) rising more than 1%.
In European markets, Germany's DAX 30 index rose 330.65 points, or 1.38%, to 24,274.39. The UK's FTSE 100 gained 154.65 points, or 1.51%, to 10,367.76. France's CAC 40 added 42.71 points, or 0.53%, to 8,114.84. The Euro Stoxx 50 increased by 57.88 points, or 1.00%, to 5,874.36. Spain's IBEX 35 climbed 124.07 points, or 0.70%, to 17,789.27. Italy's FTSE MIB advanced 422.47 points, or 0.88%, to 48,218.50.
The US Dollar Index, which measures the dollar against a basket of six major currencies, fell 0.91% to settle at 98.054. In late New York trading, one euro was worth 1.1729 dollars, up from 1.1682 dollars the previous session. One pound traded at 1.3583 dollars, higher than the prior session's 1.3483 dollars. One dollar bought 156.49 Japanese yen, down from 160.32 yen. It traded at 0.7819 Swiss francs, lower than 0.7907 francs, and 1.3612 Canadian dollars, down from 1.3681 dollars. One dollar was worth 9.2354 Swedish krona, compared to 9.3074 krona previously.
In cryptocurrencies, Bitcoin gained 0.58% to $76,373. Ethereum showed little movement, trading at $2,259.62.
Crude oil futures declined. The June contract for West Texas Intermediate crude fell $1.81 to settle at $105.07 per barrel, a drop of 1.69%. The June Brent crude contract dropped $4.02 to close at $114.01 per barrel, a decrease of 3.41%.
Precious metals saw gains, with spot gold recovering some of the previous day's losses to trade above $4,600, closing at $4,620.63 per ounce. Spot silver finished at $73.717 per ounce.
In macroeconomic news, former President Trump stated he is unconcerned about whether Jerome Powell remains on the Federal Reserve Board after his term as Chair ends. Powell's term as Chair concludes on May 15th, but his term as a Governor lasts until 2028; he has indicated his intention to continue serving as a Governor for an unspecified period. Separately, Kevin Warsh is expected to receive full Senate approval before Powell's term ends. Powell's continued presence could complicate efforts to reshape the Fed. When asked if he planned any action regarding Powell's decision to stay on, Trump replied, "No, I don't care if he stays. I just want to make sure Kevin gets the position."
US mortgage rates rose to 6.3%, marking the first increase in a month, before the key spring sales season accelerates. Freddie Mac reported the average rate for a 30-year fixed loan increased from 6.23% last week to 6.3%. A year ago, the rate was 6.76%. The housing market has been stagnant since the 2022 rate surge. Rates had previously dipped below 6% before the conflict in Iran, raising hopes for a market rebound. Current geopolitical instability is now influencing decisions for both buyers and sellers.
A European Central Bank official suggested that if energy prices do not decline, an interest rate hike could be possible at the June meeting. Sources indicated that unless there is positive progress on energy prices and resolving the Iran conflict, policymakers are very likely to raise rates. Officials noted that avoiding a hike if the conflict persists is highly unlikely but emphasized that no decision has been made and the situation remains fluid. ECB President Christine Lagarde had earlier hinted that a rate hike would be considered in June. The ECB, after discussing and rejecting a hike at its Thursday meeting, maintained its deposit rate at 2%. Officials will receive new forecasts at the next meeting, with economists and investors expecting a 25-basis-point increase.
In corporate news, Alphabet closed 10% higher, with its market value surging by $421 billion in a single day, the second-largest daily gain on record. The record is held by NVIDIA, which saw its market cap jump approximately $440 billion in one day about a year ago following an announcement about tariff suspensions. Year-to-date, Alphabet's stock has risen 23%, adding over $860 billion to its market capitalization, bringing its total value to $4.65 trillion. This puts Alphabet closer to potentially overtaking NVIDIA as the world's largest company by market cap; NVIDIA's valuation stands at $4.85 trillion.
Western Digital (WDC.US) forecast quarterly revenue above Wall Street expectations, citing strong demand for data storage from AI companies boosting its pricing power. However, its shares fell nearly 5% in after-hours trading. The stock has more than doubled this year as major tech investments in AI infrastructure drive significant demand for its high-capacity drives. The company projected fourth-quarter revenue of $3.65 billion, plus or minus $100 million, compared to an average analyst estimate of $3.46 billion. Third-quarter revenue grew 45% to $3.34 billion, exceeding expectations of $3.25 billion. Adjusted earnings per share were $2.72, beating the forecast of $2.39.
Apple reported fiscal second-quarter results that surpassed analyst estimates. Consumer interest in the new MacBook, driven by incoming CEO John Turner, was strong, but iPhone sales were hampered by supply constraints. Apple's Q2 revenue and EPS were $111.18 billion and $2.01, respectively, above expectations of $109.66 billion and $1.95. iPhone revenue was $56.99 billion, slightly below the $57.21 billion forecast. CEO Tim Cook stated that iPhone sales were limited by shortages of advanced processor chips, which act as the "brains" of the devices. "Demand has been incredible. The supply chain is currently facing some constraints in sourcing additional components," Cook said. The iPhone 17 series and iPhone Air are being developed under the leadership of incoming CEO Turner, who is set to succeed Cook in September.
Meta Platforms CEO Mark Zuckerberg attributed a sales slowdown to the ongoing conflict and linked upcoming job cuts to rising AI costs. In a company-wide meeting, Zuckerberg provided new details on Meta's aggressive AI plans and addressed the negative market reaction to its fiscal first-quarter results. He attributed the stock's 8% decline to investor concerns over increased capital expenditure forecasts and the company's guidance for slower second-quarter growth. Zuckerberg noted a "trajectory change" in Meta's ad business following the escalation of conflict in Iran in late February. "When oil prices rise, consumers spend more on fuel and gasoline, leaving less for discretionary items, which are commonly advertised," he explained. He connected next month's planned layoffs to the need for greater investment in data centers and other AI infrastructure. "The company has two primary cost centers: compute and infrastructure, and personnel. Increasing investment in one area to serve our community means we have less capital for the other. Therefore, we need to moderately reduce the company's size," Zuckerberg stated.
Regarding analyst ratings, Morgan Stanley raised its price target for Amazon.com (AMZN.US) from $300 to $330.
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