WALL Street stocks rallied and gold prices slid yesterday as solid earnings from big tech bolstered investor risk appetite.
All three major US stock indexes began the month in positive territory, with upbeat quarterly results from Meta Platforms and Microsoft benefiting the Nasdaq most, sending the tech-laden index up 2.4 per cent.
The bellwether S&P 500 is on track to extend its gains to an eighth consecutive session, its longest winning streak since August 2024.
The dollar advanced as the yen took a hit after the Bank of Japan cut its growth forecasts due to uncertainties surrounding US tariff policy.
Trading was thin throughout Asia and Europe due to May Day holidays.
There were no major announcements regarding trade negotiations following US President Donald Trump’s steep tariffs announced on April 2, which rattled world markets for much of last month.
First quarter earnings season is well past its halfway point, with 375 companies in the S&P 500 having reported. Of those, 74pc have beaten analyst expectations, according to LSEG.
Apple Inc and Amazon.com are due to report after the closing bell, the fifth and sixth members of the so-called ‘magnificent seven’ to post quarterly results, leaving chipmaker Nvidia, which is expected to release its first-quarter earnings on May 28.
On the economic front, US factory activity remained in contraction, while jobless claims increased more than analysts expected.
The Dow Jones Industrial Average rose 311.33 points, or 0.77pc, to 40,981.02, the S&P 500 increased 76.53 points, or 1.37pc, to 5,645.25 and the Nasdaq Composite was up 413.81 points, or 2.36pc, to 17,860.15.
Many markets in Europe and the rest of the world were closed for the May Day holiday.
MSCI’s gauge of stocks across the globe rose 5.63 points, or 0.68pc, to 839.17.
The pan-European STOXX 600 index was flat, while Europe’s broad FTSEurofirst 300 index fell 1.24 points, or 0.06pc.
Emerging market stocks fell 2.91 points, or 0.26pc, to 1,109.93. MSCI’s broadest index of Asia-Pacific shares outside Japan closed lower by 0.19pc, to 579.92, while Japan’s Nikkei rose 406.92 points, or 1.13pc, to 36,452.30.
The greenback advanced after the BoJ’s outlook downgrade, which reduced the prospect for future rate hikes.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.55pc to 100.22, with the euro down 0.41pc at $1.128.
Against the Japanese yen, the dollar strengthened 1.6pc to 145.36.
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