Thursday Afternoon Coffee - Markets Update - 1 May 2025 - Wall Street Rises with Tech Surge, Yen Declines Due to BOJ Pessimism

The Trade Academy Team
May 1
2 min read

Markets Update: U.S. stocks surged Thursday as robust tech earnings fueled risk appetite, sending the Nasdaq to its biggest gain since early February and extending the S&P 500’s winning streak to eight sessions—its longest since August 2024. Meanwhile, the Japanese yen weakened sharply after the Bank of Japan lowered its growth outlook, and gold tumbled amid a shift away from safe-haven assets.

Global Markets Roundup: 1 May 2025

Tech Earnings Propel Equities Higher

Wall Street kicked off May on a high note, buoyed by upbeat quarterly reports from Microsoft and Meta Platforms, which led the Nasdaq Composite up 2.36% to 17,860.15. The S&P 500 climbed 1.37% to 5,645.25, while the Dow Jones Industrial Average added 311.33 points (+0.77%) to close at 40,981.02.

First-quarter earnings season is over halfway complete, with 375 S&P 500 companies having reported. According to LSEG, 74% have beaten analyst expectations. Apple and Amazon are due to report after the closing bell, leaving Nvidia as the final "magnificent seven" member set to report on May 28.

Global Markets Quiet on May Day

With many markets closed for the May Day holiday, global volumes were light. The MSCI All-Country World Index rose 0.68% to 839.17. Japan’s Nikkei jumped 1.13% to 36,452.30, while broader Asia-Pacific equities dipped 0.19%. European equities were mixed: the pan-European STOXX 600 was flat, and the FTSEurofirst 300 shed 0.06%.

BOJ Cuts Growth Outlook; Dollar Rises

Currency markets reacted strongly after the Bank of Japan lowered its economic growth forecasts, citing uncertainty stemming from U.S. tariff policies. The dollar rose across the board, pushing the yen USDJPY down 1.6% to 145.36. The Dollar Index DXY rose 0.55% to 100.22, while the euro fell 0.41% to $1.128. Despite the daily gain, the greenback remains down 8.5% year-to-date against a basket of major currencies.

Bonds Steady as Yields Inch Higher

U.S. Treasury yields crept up modestly. The benchmark 10-year yield rose to 4.198%, the 30-year climbed to 4.725%, and the 2-year—closely tied to Fed rate expectations—ticked up to 3.639%.

Gold Drops as Trade Fears Ease

Gold extended its recent pullback, touching a two-week low as traders dialed back safe-haven bets in the absence of fresh trade escalation. Spot gold fell 1.94% to $3,224.06 an ounce, while U.S. futures dropped 2.43% to $3,224.70.

Oil Rebounds, Commodities Mixed

Oil prices reversed earlier losses on improving demand sentiment. U.S. crude rose 0.93% to $58.77/barrel and Brent gained 0.75% to $61.52. Coffee prices dropped to just above $4/lb—lowest in over a week—while cocoa futures dipped below $8,700/tonne, pressured by easing supply fears. Soybeans fell for a third straight day, down to $10.42½ per bushel, and corn slipped to $4.71½. Wheat edged up to $5.32¾ per bushel.

Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team