SUPERNEWS

Macro

S&P 500, Nasdaq Up Post-Powell; Qualcomm Leads Chip Surge

Stocks rise modestly after Fed holds rates; tech leads gains amid mixed earnings, while gold and crude dip.

By Bill Bullington

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5/2, 13:48 EDT
S&P 500
iShares 20+ Year Treasury Bond ETF
iShares 7-10 Year Treasury Bond ETF
ConocoPhillips
Linde plc
Moderna, Inc.
QUALCOMM Incorporated
Regeneron Pharmaceuticals, Inc.
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Key Takeaway

  • U.S. stock markets rose, with the S&P 500 up 0.3% and Nasdaq 100 up 0.6%, after Fed Chair Powell ruled out a rate hike.
  • Semiconductors surged on Qualcomm's strong earnings; commodities like gold and crude oil fell, with WTI at $78/barrel.
  • Earnings reports drove significant stock movements: Linde down 5.8%, Regeneron up 3.8%, Moderna soared by 9%.

Market Rebounds on Fed's Rate Decision

U.S. stock markets experienced a notable surge during Thursday's midday trading session, with major indices reflecting positive investor sentiment. This uplift was largely attributed to the Federal Reserve's decision to maintain interest rates, as announced by Fed Chair Jerome Powell. The S&P 500 saw a modest increase of 0.3%, while the Nasdaq 100 outperformed slightly with a 0.6% rise. The technology sector, particularly semiconductors, received a significant boost from Qualcomm Inc.'s strong quarterly results and optimistic future guidance, highlighting the sector's resilience and potential for growth.

Earnings Season Influences Market Dynamics

The current earnings season has brought a mix of outcomes, influencing stock market movements. Notable performances include Linde plc, which saw a 5.8% decline after missing quarterly revenue estimates, and ConocoPhillips, down by 1.6%. On the positive side, Regeneron Pharmaceuticals and Moderna Inc. reported gains of 3.8% and 9%, respectively, following their earnings releases. These mixed results underscore the varied impact of corporate earnings on investor sentiment and market trends, with technology and pharmaceutical sectors showing particular strength.

Commodities and Treasury Yields React

In the commodities market, gold and West Texas Intermediate (WTI) light crude experienced declines, with WTI poised to close at its lowest level since March 13, 2024. Meanwhile, Treasury yields edged lower, indicating reduced investor fears over potential interest rate hikes. The policy-sensitive 2-year yield fell to 4.9%, reflecting a cautious but optimistic market outlook. These movements in commodities and Treasury yields provide insight into broader economic sentiments and the potential direction of financial markets.