This report is from today’s TNC’s Daily Open, our international markets update. TNC Daily Open keeps investors informed on everything they need to know, no matter where they are.
In addition to all the headlines about tariffs, major U.S. tech companies gave investors another reason to think about on Thursday when they released their first-quarter results.
The Dow recovered the 40,000 mark, while the S&P 500 and Nasdaq reported gains of more than 2% as U.S. stock indexes surged.
Even if technology seems to be the top concern for investors right now, trade tensions and tariffs remain present. Intel CFO David Zinsner has warned that tariffs and retaliation from other nations have increased the likelihood of a recession.
Furthermore, China’s claim that there are no active trade negotiations with the United States has undermined the hope that the two countries can defuse the trade conflict.
The uncertainty surrounding trade was heightened when U.S. President Donald Trump denied China’s allegations and stated that trade negotiations were ongoing, but refused to provide any details about the nature of the discussions.
Oh well, it appears that only at the top levels of diplomacy among the world’s biggest economies is it a matter of “he said, she said.” Markets must be captivated by that.
What To Note Today
Alphabet Surges on Strong Q1 Earnings Beat
Alphabet, Google’s parent company, posted better-than-expected Q1 2025 results, driven by solid search and ad revenues despite rising AI competition. Revenue jumped 12% YoY, outpacing forecasts, pushing shares up over 5% in after-hours trading.
Intel Beats Estimates but Warns on Tariff Risks
Intel topped Q1 expectations but offered a cautious outlook for Q2, citing macroeconomic headwinds and potential fallout from trade tariffs. The company flagged a possible recession risk tied to U.S.-China trade tensions.
Trump Claims U.S.-China Trade Talks Are Back On
President Donald Trump insisted that trade talks with China are underway, contradicting Beijing’s denial. He stated meetings were held recently, despite China calling for an end to unilateral U.S. tariffs before any discussions resume.
South Korea Urges Calm in U.S. Trade Talks
Seoul is seeking structured and comprehensive trade negotiations with Washington. South Korea aims to finalize a deal by July, with a focus on tariffs, economic security, investment, and monetary cooperation.
Tech Rally Drives Markets Higher
U.S. stocks rose on Thursday, driven by strong tech earnings. The Nasdaq jumped 2.74%, the S&P 500 rose 2.03%, and the Dow reclaimed 40,000 with a 1.23% gain. Asia followed suit, with Japan’s Nikkei 225 gaining nearly 2%.
Magnificent 7 Stocks Struggle in 2025
The once-dominant Mag 7 tech stocks are losing steam. The Roundhill Magnificent 7 ETF (MAGS) is down 17% year-to-date (YTD), more than double the S&P 500’s 7% decline, raising questions about the role of tech in driving market rallies.
China Denies Any Ongoing Tariff Talks
China rejected U.S. claims of active trade negotiations, asserting no current discussions on tariffs are taking place. Beijing dismissed any media reports suggesting progress on U.S.-China trade relations.
Strong tech earnings lifted markets despite conflicting U.S.-China trade talk claims, South Korea’s tariff concerns, and fading momentum in top tech stocks.
