The S&P 500 and Nasdaq Composite posted gains for the third session in a row on Thursday, driven by notable rises in key technology stocks. The S&P 500 increased by 2.03%, finishing at 5,484.77, while the Nasdaq advanced by 2.74%, ending the day at 17,166.04. The Dow Jones Industrial Average increased by 1.23%, ending the day at 40,093.40. – It's first finish above the 40,000 mark since mid-April, despite a sharp decline in IBM shares.
Technology giants, including Nvidia, Meta, Amazon, Tesla, and Microsoft, all saw upward movement, helping to push indices higher. This comes amid ongoing concerns around the U.S.-China trade landscape, which has continued to influence market sentiment.
Despite hopes for progress, China’s Ministry of Commerce stated that no current trade talks are underway with the United States. A spokesperson dismissed recent claims of negotiation activity and urged the removal of unilateral tariffs.
The cautious tone from China followed comments from President Donald Trump, who suggested a willingness to ease the confrontational stance on trade discussions. A possible trade agreement with South Korea might be reached as early as next week, according to a separate statement from Treasury Secretary Scott Bessent.
While markets responded positively, some analysts remain wary. Baird investment strategist Ross Mayfield warned against overanalysing the rally. “The rhetoric from China was clear,” he said in a CNBC interview. “There’s still no formal negotiation process, so investor optimism should be measured.”
Despite broader concerns, the S&P 500 has now recovered some ground after a recent slide. Following Trump's announcement of import tariffs on April 2, the Dow has dropped by 5.1%, the Nasdaq by 2.5%, and the S&P 500 by 3.3%.
However, all three indices are now on track to close the week in positive territory, marking two out of the last three weeks in the green.
As tech stocks drive market gains, traders should remain alert to underlying risks such as trade tensions and shifting policy signals. Despite the positive momentum, uncertainty around U.S.-China relations and global tariffs could create further volatility in the weeks ahead.
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