In a day marked by a notable rebound, global stock markets showed signs of resilience, with the Dow Jones Industrial Average climbing more than 300 points, indicating a return to winning ways for the first time in three sessions. This surge in investor confidence was driven by anticipation of upcoming corporate earnings and crucial labour market data expected later in the week. Despite mixed signals from central banks, the Nasdaq Composite led the charge, up by 1.51%, as tech giants and chipmakers like Qualcomm posted gains following upbeat earnings reports. Meanwhile, European and Asian markets presented a mixed picture, reacting variably to the US Federal Reserve’s decision to hold interest rates steady, highlighting the diverse global economic landscape as investors dealt with corporate financial disclosures and economic indicators.

Key Takeaways:

  • Dow Jones, Nasdaq and S&P 500 Strong Gains: The Dow Jones Industrial Average gained 322 points, reflecting a robust increase of 0.85%. Demonstrating a stronger recovery, the Nasdaq Composite surged by 1.51%, driven largely by gains in tech giants and a 9.8% jump in Qualcomm shares following its favourable earnings report. Meanwhile the S&P 500 recorded a 0.91% rise, signalling positive momentum as investors look forward to more corporate earnings and economic data releases.
  • European Markets React to Earnings: The European stock markets saw mixed results. The Stoxx 600 index slightly declined by 0.2%, while the UK’s FTSE 100 index gained 0.7%, closing at 8,174. Germany’s DAX dropped by 0.2% to 17,905, France’s CAC fell by 0.8% to 7,921, and Italy’s FTSE MIB slightly decreased by 0.1% to 33,774.
  • Asian Markets Show Mixed Responses: Asian markets were varied, with Hong Kong’s Hang Seng index leading gains in Asia, jumping 2.4%. The Hang Seng Tech index surged by 4.4% following gains in Chinese EV makers. Japan’s Nikkei 225 closed 0.1% lower at 38,236.07, while South Korea’s Kospi fell by 0.31% to 2,683.65.
  • US Crude Oil Recovers After Dip: US crude oil prices showed a modest recovery, rising to $79.40 a barrel, a 0.49% increase. This rebound follows a significant drop the previous day, indicating volatile trading conditions influenced by inventory changes and global demand cues.
  • Labour Market and Economic Indicators in Focus: As the market absorbs the Federal Reserve’s decision to maintain interest rates, attention is now turning towards the upcoming nonfarm payrolls report expected to show 240,000 job gains for April.

FX Today:

  • EUR/USD Sees Downward Movement: The EUR/USD pair trended lower on Thursday, failing to breach the resistance at 1.0725. The pair retraced towards the 1.0700 mark, reflecting a cautious stance among traders ahead of significant economic releases. In the event of further downward pressure, the next support zone is at 1.0645 and potentially 1.0600.
  • GBP/USD Stabilises After Decline: The GBP/USD pair stabilised around the 1.2515/1.2500 range, with significant support expected to hold to prevent further decrease in sentiment. On the upside, resistance at 1.2550, where the 200-day simple moving average is, followed by resistance at 1.2590 and 1.2620, may challenge any bullish attempts.
  • USD/JPY Experiences Sharp Decline: The USD/JPY fell to a two-week low, touching around 153.00 after suspected intervention by the Bank of Japan. Should the pair drop below this level, it could test the 152.00 psychological barrier and potentially the 50-day moving average at 151.87. Conversely, resistance is anticipated at 154.00, followed by the May 2 high at 156.28 and further at 157.00.
  • USD/CAD Pulls Back from Highs: The USD/CAD pair retreated below the 1.3700 handle, testing lower levels near 1.3660 to 1.3630. Despite recent losses, the pair remains above the long-term 200-day EMA at 1.3537, indicating that the longer-term uptrend is still in place.
  • NZD/USD Shows Bullish Signs: The NZD/USD climbed to 0.5961, reflecting a modest rally and breaching the key short-term 20-day SMA. This upward movement suggests a short-term bullish bias, although the broader trend remains bearish as indicated by the positions below the 100 and 200-day SMA.
  • Gold Price Fluctuates Amid Market Uncertainty: Gold prices faced a downturn as they struggled to break past the recent high of $2,352. If prices fall below the key support at $2,300, a further pullback towards $2,291 and possibly $2,223 could follow, reflecting increased selling pressure.

Market Movers:

  • Apple Surges on Record Share Repurchase and Earnings Beat: Apple’s stock advanced 7% following the announcement of a staggering $110 billion share repurchase and better-than-expected fiscal second-quarter results. The tech giant reported earnings of $1.53 per share on revenue of $90.75 billion, surpassing analysts’ expectations of $1.50 per share and $90.01 billion in revenue, according to LSEG.
  • Expedia Faces Setback with Lowered Guidance: Shares of Expedia dropped about 8% in after-hours trading after the company revised its full-year guidance to mid to high single-digit top-line growth. This revision reflects challenges in its Vrbo unit and slower business-to-consumer acceleration. Despite these challenges, Expedia beat first-quarter revenue expectations, posting $2.89 billion against forecasts of $2.81 billion by LSEG.
  • Amgen Climbs on Strong Earnings and Clinical Advancements: Amgen’s shares surged 11% as it exceeded earnings and revenue expectations for the first quarter, posting adjusted earnings of $3.96 per share and revenue of $7.45 billion. This performance beat LSEG’s earnings forecast of $3.87 per share and revenue estimate of $7.44 billion. Additionally, Amgen announced progression of its injectable obesity drug into phase 3 trials, though it discontinued development of another experimental weight loss pill.
  • Fortinet Experiences a Decline on Conservative Billings Guidance: Fortinet’s stock tumbled 8% after providing second-quarter and full-year billings guidance that fell short of analysts’ expectations. Despite this, the company reported adjusted earnings of 43 cents per share and revenue of $1.35 billion in the first quarter, surpassing LSEG’s expectations of 38 cents per share and revenue of $1.34 billion.
  • Block Rises on Strong Quarterly Performance: Shares of Block rose 6% after the payment services provider reported impressive first-quarter results. Adjusted earnings were 85 cents per share on revenue of $5.96 billion, outperforming analyst estimates of 72 cents per share and revenue of $5.82 billion as per LSEG.
  • Cloudflare’s Guidance Concerns Offset Earnings Beat: Cloudflare’s stock declined 13% following the company’s projection of weaker-than-expected full-year revenue. However, it surpassed first-quarter expectations with adjusted earnings of 16 cents per share on revenue of $379 million, better than the forecasted 13 cents per share and $373 million in revenue by LSEG.
  • Qualcomm Surges on Strong Earnings: Qualcomm shares rose sharply, gaining 9.74% after the company reported adjusted earnings of $2.44 per share for its latest quarter, surpassing analysts’ expectations of $2.32 per share. The upbeat earnings and positive revenue guidance contributed to the stock’s standout performance.
  • Carvana Skyrockets After Record Earnings: Shares of used car retailer Carvana soared 33.6% following a record-breaking earnings announcement. The company reported its best-ever quarterly earnings, substantially lifting investor sentiment and stock value.
  • Moderna Advances on Narrower Loss: Moderna’s stock price jumped 12.7% after the company reported a smaller-than-expected quarterly loss. The positive news about cost-cutting measures and reaffirmed full-year guidance helped boost investor confidence in the biotech firm.
  • DoorDash Declines on Earnings Miss: DoorDash’s shares fell 10.3% after the food delivery service reported a first-quarter loss of 6 cents per share, which was wider than the expected 4 cents loss per share. Despite higher revenue, the earnings miss weighed heavily on the stock.
  • Peloton Drops After CEO Departure and Layoffs Announcement: Peloton experienced a 2.48% decrease in its stock price after announcing that CEO Barry McCarthy will be stepping down and that the company will lay off 15% of its staff. The company’s fiscal third-quarter results also missed Wall Street’s earnings and revenue expectations, contributing to the stock’s decline.
  • Wayfair Climbs on Earnings Beat: Wayfair’s stock climbed nearly 17% after reporting a narrower-than-expected loss of 32 cents per share on an adjusted basis, better than the anticipated loss of 44 cents per share by analysts. The home furniture retailer also reported higher-than-expected revenue of $2.73 billion, boosting its market valuation.
  • Etsy Tumbles on Earnings Miss: Etsy’s shares fell 15% following a first-quarter earnings report where it missed analyst expectations by one cent, posting adjusted earnings of 48 cents per share. The online marketplace’s revenue came in line with forecasts, but the slight earnings miss prompted a significant sell-off.
  • eBay Dips on Lower Guidance: eBay saw its shares decline by more than 3% after issuing lower-than-expected guidance for the second quarter, with projected revenues ranging from $2.49 billion to $2.54 billion, below the forecast of $2.56 billion by analysts.

As the trading day concluded, the market demonstrated resilience and volatility, shaped by surprises in earnings and strategic corporate announcements. The significant gains in stocks like Qualcomm and Carvana highlighted the market’s need for strong earnings results, while downturns in shares of companies like DoorDash and Etsy highlighted investor sensitivity to any performance shortfalls. Overall, the mood among investors appears slightly optimistic as they shift their focus toward upcoming labour market data and further corporate earnings. Meanwhile, the movements in the FX and commodities markets, such as the slight rebound in oil prices and the fluctuating gold prices, further influence investor strategies in these uncertain times.