May 2, 2025

Markets:

S&P 500 futures rose early Friday as investors cheered China’s announcement that it is evaluating the possibility of starting trade negotiations with the U.S.

Apple slid 3% in premarket trading after posting fiscal second-quarter revenue from its Services division that fell short against Wall Street’s estimates. The iPhone maker also said it expects to add $900 million in costs in the current quarter due to tariffs. Amazon dropped 1.7% after issuing light guidance and highlighting “tariffs and trade policies” as factors.

The moves come after the major averages rose to kick off May, with the tech sector catching a tailwind after results from Meta Platforms and Microsoft helped revive the artificial intelligence trade. The 30-stock Dow added 0.2%, while the S&P 500 advanced 0.6%. Both indexes posted eight-day win streaks. The Nasdaq Composite jumped 1.5% and wiped out its losses since April 2, the day of President Donald Trump’s “reciprocal” tariffs announcement.

Another catalyst awaits traders on Friday morning in the form of April’s jobs report as investors look for further clues on the state of the U.S. economy. Economists polled by Dow Jones anticipate payrolls grew by 133,000 last month, down sharply from the 228,000 added in March. They also expect the unemployment rate to hold steady at 4.2%.

The payrolls report is the latest in a blast of economic data this week, with a gross domestic product reading that showed the economy contracted 0.3% at an annualized pace in the first quarter. Private payrolls data from ADP also came in weak, and the latest weekly jobless claims ballooned to 241,000, higher than expected.

Portfolio:

The bears had their chance at attacking this market once again after yesterday close but the headline regarding China's willingness to negotiate right now helped futures in a major way. Big love off the lows and once again – as been the case over the last few weeks – shorts are caught. Will be very interesting to see how we trade today, the last trading session of the week.

Now, here is what one thing this undisputable thus far from earnings., Big numbers across the board, Cap-Ex doubling down, cloud and commentary on all conference calls this week much better than Street was anticipating. Bullish for AI Revolution trade. This cycle will once again be at the forefront soon enough once we are past the tariff ordeal. This is where the wave of new millionaires will be made. Truly believe that.