[New York Stock Market] Major Indices Rally as Strong Big Tech Earnings and Falling Oil Prices Drive Gains

Meta and Microsoft Plunge Due to Capital Expenditure Concerns

The three major U.S. stock indices all rose on April 30 (local time), as Big Tech earnings exceeded expectations and international oil prices fell.

According to the home trading system (HTS), as of 9:35 a.m. on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average was up 310.78 points (0.63%) at 49,172.59. The S&P 500 index, which focuses on large-cap stocks, rose 14.62 points (0.20%) to 7,150.07, while the tech-heavy Nasdaq index increased by 40.54 points (0.16%) to 24,714.78.

The previous day's Big Tech earnings announcements appear to have been influential. Alphabet’s first-quarter revenue reached $109.9 billion, up 22% from the same period last year. Meta, Amazon, and Microsoft also saw first-quarter revenues surpass market consensus, rising by 33%, 16.6%, and 18% year-on-year, respectively.

However, Meta is currently facing downward pressure due to its recent capital expenditure outlook announcement and sluggish user growth. Microsoft, after revealing that its expenses would reach $190 billion due to high memory costs, withdrew its investment.

Among the top market cap stocks, Microsoft and Meta are plunging by 3.03% and 7.34%, respectively. In contrast, Nvidia is up 0.36%, Apple 0.33%, Amazon 4.03%, Alphabet 7.12%, and Broadcom 2.62%.

The decline in international oil prices has also eased the burden on the stock market. At this time, June Brent crude futures on the ICE Futures Exchange are trading at $114.14, down 3.89% from the previous session. June West Texas Intermediate (WTI) crude futures on the New York Mercantile Exchange are trading at 104.97, down 1.84% from the previous session.

Meanwhile, the Federal Reserve held its benchmark interest rate steady the previous day. However, as three members opposed language signaling a “dovish bias,” the decision is being interpreted as hawkish. In addition, there are growing expectations that a rate cut will be delayed, as Chair Jerome Powell announced he would remain on the board after his term as chair ends.

Sonu Varghese, global macro strategist at Carson Group, analyzed that more obstacles are emerging to prevent a rate cut. He stated, “Rates were held steady, and I expect this stance to continue for the remainder of the year,” adding, “Some Fed members are clearly concerned about inflation, and the next move may not necessarily be a rate cut.”

He also commented, “Now that Chair Powell has decided to remain on the board, only a minority—including incoming chair Kevin Warsh—support a rate cut. It will be difficult for Chair Warsh to persuade a majority to lower rates.”

This content was produced with the assistance of AI translation services.