U.S. stocks rallied for the third day in a row, lifted once again by Big Tech as investors bet on a potential Federal Reserve rate cut and watched for signs of relief in the U.S.-China trade conflict. All three major indexes notched solid gains, with the Nasdaq leading the charge.
The Dow Jones Industrial Average (DJI) was up nearly 1%, gaining over 370 points to hover around 39,978. The S&P 500 (GSPC) climbed 1.65%, while the tech-heavy Nasdaq Composite (IXIC) surged 2.2%, marking its best single-day gain in weeks. Investor optimism was fueled by dovish comments from a top Fed official and hopes that tariff tensions may de-escalate, even as contradictory signals from Washington tempered expectations.
Market Movers
- Cantor Equity Partners (CEP) +77%: Shares skyrocketed following a SPAC merger announcement with Twenty One Capital, a Bitcoin-focused investment and media company. The move comes amid renewed crypto enthusiasm, with investors seeing the merger as a pure-play bet on Bitcoin's mainstream adoption. The stock’s rally coincides with Bitcoin climbing to $93,000, reflecting surging retail and institutional demand.
- Netflix (NFLX) +3.9%: Netflix hit an all-time high above $1,070 after recent earnings topped expectations, cementing its image as a defensive tech stock amid tariff turmoil. Analysts praised its steady subscriber growth and strategic positioning, with JPMorgan calling it the "cleanest story in internet" despite mounting macroeconomic uncertainty.
- Intel (INTC) +3.5%: Investors bought into Intel ahead of its earnings report, the first under new CEO Lip-Bu Tan. Market watchers are eager to see if Tan can steer the company through intense competition and manufacturing setbacks. Hopes are high that Tan will outline a clear vision for revitalizing Intel's lagging chip division and regaining market share from rivals like AMD and TSMC.
- Trump Media & Technology Group (DJT) -3.2%: Despite surging earlier in the week, shares slipped after President Trump’s cryptocurrency, $TRUMP, rallied 33% on news of a gala for major coin holders. The media firm announced a partnership with Crypto.com to launch U.S.-centric ETFs, but investors appear cautious about the group’s rapidly evolving strategy.
- IBM (IBM) -1.4%: Shares dipped following revelations that 15 government contracts were affected by cost-cutting measures tied to the Trump administration. The pullback comes amid broader uncertainty over how government budget shifts could hit legacy tech firms reliant on federal spending.
Fed Signals Rate Cut May Come Sooner Than Expected
Markets surged after Cleveland Fed President Beth Hammack signaled openness to cutting rates as soon as June — provided that incoming economic data justifies it. In a Thursday morning interview, Hammack stressed that clarity in the economic outlook would be key. “If we have clear and convincing data by June, then I think you'll see the committee move,” she said.
Investors quickly repriced expectations, with many now anticipating a midyear cut. Treasury yields responded accordingly, with the 10-year dipping back to 4.3% after spiking earlier in the week. The dovish tone helped offset anxiety about persistent inflation and the impact of President Trump’s tariff policies.
Tech Dominance Returns as ‘Magnificent Seven’ Roar Back
The "Magnificent Seven" megacap tech stocks continued their comeback, extending a multi-day rally that has added hundreds of billions to their combined valuations. Nvidia (NVDA) led with a 2% gain, followed closely by Microsoft (MSFT), Tesla (TSLA), and Google (GOOG). Even Apple (AAPL), which has faced headwinds from supply chain and tariff issues, posted modest gains.
The rebound comes as Washington sends mixed messages on tariffs, leaving investors both hopeful and wary. Though the administration floated easing some China tariffs, it also floated fresh levies on auto and truck imports. Tech giants, heavily reliant on global supply chains, remain highly sensitive to such policy swings.
Looking Ahead
As Thursday’s rally unfolds, all eyes are on tonight’s earnings reports from Alphabet and Intel, which could provide critical insight into how corporate America is managing tariff uncertainty and rising costs. Meanwhile, the macro picture remains muddled: mortgage rates remain high, GDP forecasts are being cut, and volatility tied to White House policy decisions continues to shake confidence.
Still, markets appear eager to shake off the recent selloff — as long as the Fed keeps the door open to rate relief and tariff rhetoric doesn’t escalate into action. Friday’s session will be pivotal in determining whether this week’s rally has legs, or whether volatility is set to return.