- Stocks Rise on Trade Talks, China Cuts Key Rates: Markets Wrap
Asian stocks rose after China and the US planned to hold trade negotiations, spurring optimism tensions
between the world’s two largest economies will ease. China also announced measures to boost the economy,
further lifting sentiment. A gauge of regional equities rose 0.2% – they pared earlier gains of as much as 0.7% – as China lowered its policy rate. Index futures for the S&P 500 gained 0.6% on news US and Chinese officials
will meet this week in Switzerland. A gauge of the dollar’s strength advanced, snapping three days of declines.
Gold dropped as much as 2.1% and Treasuries fell. - Dow slides nearly 400 points, S&P 500 books back-to-back losses as path on trade deals remains unclear
Stocks slipped Tuesday after President Donald Trump’s shaky commentary on global trade deals, dashing hopes
that progress will soon be made on the tariff front. Investors also awaited the Federal Reserve’s policy decision.
The Dow Jones Industrial Average lost 389.83 points, or 0.95%, to close at 40,829.00. The S&P 500 shed 0.77%
and settled at 5,606.91, and the Nasdaq Composite dipped 0.87% to end at 17,689.66. All three of the major
averages posted back-to-back declines. - Oil up on signs of more Europe and China demand, less U.S. output
Oil prices rose on Wednesday on signs of weakening production in the U.S. and higher demand in Europe and
China as buyers emerged after prices fell to new lows earlier in the week. Brent crude futures gained 37 cents
a barrel, or 0.6%, to $62.52 a barrel by 1215 GMT, while U.S. West Texas Intermediate crude was at $59.53 a
barrel, up 44 cents, or 0.74%. Both benchmarks had plunged to a four-year low after OPEC+’s decision to speed
up output increases, which stoked fears of oversupply at a time when U.S. tariffs have spurred concerns about
demand. However, lower oil prices in recent weeks have prompted some U.S. energy firms like Diamondback
Energy and Coterra Energy to announce that they would cut some rigs, which analysts said should over time
increase prices by reducing output. The latest announcements suggested output will weaken in the coming
months, said ANZ bank senior commodity strategist Daniel Hynes. “We warned last month that falling prices
and declining drilling activity was raising the risk of U.S. oil output falling.” Crude stocks fell by 4.5 million
barrels in the week ended May 2, market sources said, citing American Petroleum Institute figures on Tuesday.
U.S. government data on stockpiles is due at 10:30 a.m. ET (1430 GMT). Analysts polled by Reuters expect, on
average, an 800,000 barrel decline in U.S. crude oil stocks for last week. Prices also drew support from signs of
demand improving. Consumers in China increased spending during the May Day celebration and as market
participants returned after the five-day holiday. In Europe, companies are expected to report growth of 0.4%
in first-quarter earnings, improvement over the 1.7% drop analysts had expected a week ago. - Gold slips on US-China trade talk hopes; traders eye Fed policy
Gold prices retreated on Wednesday as optimism over potential U.S.-China trade talks weakened demand for
safe-haven assets, while investors braced for the Federal Reserve’s policy meeting later in the day. Spot
gold was down 1.2% at $3,388.67 an ounce as of 0225 GMT. The metal had risen nearly 3% in the previous
session. U.S. gold futures fell 0.7% to $3,397.70. “Gold seems to be pulling back amid a broad-based “risk on”
move across markets … this is a pro-cyclical configuration that might echo optimism amid clues that
the U.S. and China have started real trade negotiations,” said Ilya Spivak, head of global macro at Tastylive.
U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet top Chinese
economic official He Lifeng in Switzerland this weekend for talks. Both countries imposed tit-for-tat tariffs on
each other last month, triggering a trade war that fuelled fears of a global recession. On Tuesday, U.S. President
Donald Trump said he and top administration officials will review potential trade deals over the next two weeks
to decide which ones to accept. The market’s focus will be on the Federal Open Market Committee (FOMC)
meeting later in the day, where the U.S. central bank is expected to hold interest rates steady. The FOMC will
remain vague to keep as much flexibility as possible as it tries to discern what this trade war will mean for
growth and inflation, Spivak added. Traders are expecting 80 basis points of rate cuts this year, starting in July.
Fed Chair Jerome Powell’s remarks are also awaited for clues into the potential timing of future rate reductions.
Gold, traditionally seen as a hedge against economic and political uncertainties, thrives in a low-interest rate
environment. Spot silver eased 0.9% to $32.93 an ounce, platinum fell 0.6% to $979.07 and palladium lost 0.4%
to $970.28. - China announces sweeping measures to ease policy in bid to shore up trade-war hit economy
China will cut the seven-day reverse repurchase rates by 10 basis points to 1.4% from 1.5%, the People’s Bank
of China Governor Pan Gongsheng said at a press briefing. The central bank will also lower the reserve
requirement ratio, which determines the amount of cash banks must hold in reserves, by 50 basis points. The
press conference took place hours after Beijing’s affirmation that Chinese Vice Premier He Lifeng will hold talks
with U.S. Treasury Secretary Scott Bessent in Switzerland later this week. - UK and India strike a trade deal amid U.S.-led tariff tensions
The United Kingdom and India struck a bilateral trade agreement Tuesday, lowering tariffs on key exports such
as U.K. whisky and cars, amid a global trade war initiated by the United States. The deal will see India gradually
lower taxes on imports from the U.K., with the vast majority of goods traded becoming “fully tariff-free within
a decade,” according to the British government. Exports from the U.K., such as whisky and gin, will see tariffs
halved from 150% to 75%, before reducing to 40% within a decade under the agreement. Meanwhile, many
automotive tariffs will be cut sharply from over 100% to 10%, the government added. The trade agreement
between India and the U.K. comes at a time of rising trade tensions globally. U.S. President Donald Trump has
raised tariffs on imports worldwide, straining relations with allies and adversaries. The U.K. government said
the agreement is expected to increase bilateral trade by £25.5 billion ($34 billion). Trade between the two
nations stood at £42.6 billion in 2024, up 8.3% from the previous year. At the end of 2024, the U.K. had a £8.4
billion trade deficit with India across goods and services. The South Asian nation was the country’s 11th-largest
trading partner. The deal is the first to be struck under British Prime Minister Kier Starmer’s premiership. - Trump hints at major positive announcement ahead of Middle East trip
Ahead of his visit to the Middle East, President Trump has hinted at an upcoming significant announcement.
He made this statement during a bilateral meeting with Canada’s Prime Minister, Mark Carney. While the
subject of the announcement remains undisclosed, Trump emphasized its positivity and importance. Trump
stated, “we’re going to have a very, very big announcement to make. Like as big as it gets…it’s going to be big
and it’s very positive…And that announcement will be made either Thursday or Friday or Monday before we
leave.” He further clarified that the announcement does not necessarily pertain to trade matters. In the same
meeting, Trump also discussed ongoing talks with China. He highlighted that China is keen on negotiations and
a meeting, despite the current halt in business activities between the two nations. Trump attributed this halt
to the previous administration’s incompetence, leading to a loss of $1 trillion to China in trade. He pointed out
that the current situation is saving the US this amount, as China’s economy is greatly suffering from the lack of
trade with the US. Trump also touched on his approach to international trade, stating that he aims to assist
countries rather than harm them. He called for countries to open up their economies and reduce their tariffs.
As an example, he cited India, which agreed to drop its tariffs, one of the highest in the world, to zero. He
emphasized that the US is open for business and that countries would pay for the privilege of trading with the
US. - India launches air strikes on Pakistan and Pakistan-administered Kashmir
India says it has launched missile strikes on nine sites in Pakistan and Pakistan-administered Kashmir. Residents
were jolted awake by huge explosions. Pakistan says three locations were attacked and claims to have shot
down five Indian fighter jets. India has not confirmed this. India’s army said at least seven civilians were killed
by Pakistani shelling on its side of the de facto border. Tensions between the nuclear-armed states soared after
a deadly militant attack on Indian tourists in Pahalgam last month. India claims it has “evidence pointing
towards the clear involvement of Pakistan-based terrorists, external” in the attack. Pakistan has denied any
link. Both sides will know what the stakes are, says International Editor Jeremy Bowen, and a major diplomatic
push to stop it escalating is needed. Indian-administered Kashmir has seen a decades-long insurgency which
has claimed thousands of lives. India and Pakistan both claim Kashmir in full. - Advanced Micro Devices guidance, Q1 results top estimates; shares jump
Advanced Micro Devices jumped in after-hours trade on Tuesday after reporting strong current-quarter
guidance and better-than-expected Q1 results as AI-led data center demand eased the impact from the
ongoing ban on chip sales to China. Advanced Micro Devices Inc (NASDAQ:AMD) jumped more than 5% in
afterhours following the report. AMD announced earnings per share of $0.96 on revenue of $7.44 billion.
Analysts polled by Investing.com anticipated EPS of $0.95 on revenue of $7.11B. Gross margin climbed 3% to
50% in Q1 from the same period a year earlier. The company’s data center segment continued to soak up AI
demand, with revenue up 57% to $3.7B in Q1 from a year earlier, driven by sales of its CPUs, used in servers,
and its GPU, used in data center and AI infrastructure. For Q2, AMD expects revenue to be approximately
$7.4B, plus or minus $300 million, beating analyst estimates of $7.24B. - Rivian beats Q1 2025 expectations, stock dips
Rivian Automotive Inc. (RIVN), with a market capitalization of $15.5 billion, reported a narrower-than-expected
loss for Q1 2025, with an earnings per share (EPS) of -$0.41, surpassing the forecast of -$0.76. Revenue also
exceeded expectations, reaching $1.24 billion compared to an anticipated $983.65 million. Despite these
positive results, Rivian’s stock fell 1.11% in after-hours trading to $13.35, reflecting investor concerns over
future challenges in the electric vehicle market. According to InvestingPro, the company maintains a strong
liquidity position, holding more cash than debt on its balance sheet. Rivian’s Q1 2025 results show continued
progress in achieving profitability, with a gross profit of $26 million. The automotive segment contributed
significantly to revenue, generating $922 million. InvestingPro analysis reveals that while the company’s
revenue grew by 12.1% over the last twelve months, it continues to face profitability challenges with negative
gross margins. Despite the positive financial performance, the company faces challenges from increased price
sensitivity in the EV market and a demanding consumer backdrop. - Super Micro drops as AI server maker lowers revenue outlook on tariffs, economic uncertainty
Super Micro Computer (SMCI) stock fell as much as 6% in after-hours trading on Tuesday after the company
lowered its full-year revenue outlook, citing economic uncertainty amid President Trump’s trade war and fierce
competition from other AI server makers. Super Micro said it expects its full year revenue for 2025 to fall
between $21.8 billion and $22.6 billion, down from its prior guidance of $23.5 billion and $25 billion. CEO
Charles Liang told analysts in a call following the company’s third quarter earnings results that tariffs and
macroeconomic uncertainty “concern” some customers and make it difficult to forecast the adoption of its
technology. Super Micro is based in the US but also has manufacturing facilities in Taiwan and the Netherlands,
which are subject to Trump’s new 10% global tariffs. The president is also pursuing tariffs on semiconductors,
key components in Super Micro’s servers. CFO David Weigand said that given the current “dynamic
environment,” the company expects gross margin, a measure of profitability, to be approximately 10%. Super
Micro’s gross margin was just over 14% in its fiscal year 2024 (ended June 30) and 18% in 2023. - Datadog beats Q1 2025 forecasts, shares rise
Datadog Inc. (DDOG) delivered robust financial results for the first quarter of 2025, surpassing Wall Street
expectations. The company reported earnings per share (EPS) of $0.46, exceeding analysts’ forecasts of $0.43.
Revenue reached $762 million, also beating projections of $741.81 million. In premarket trading, Datadog’s
stock rose by 0.95%, reflecting investor optimism following the earnings beat. With a market capitalization of
$36.5 billion, Datadog maintains strong financial health, as indicated by its GOOD rating on InvestingPro’s
comprehensive analysis framework. Datadog’s performance in Q1 2025 demonstrated strong growth and
resilience, with a 25% increase in revenue compared to the same quarter last year, maintaining its impressive
revenue growth trajectory of 26.12% over the last twelve months. The company continues to benefit from
trends in digital transformation and cloud migration, supported by a healthy current ratio of 2.64 and strong
cash position. With 30,500 total customers, Datadog has shown significant expansion, particularly in its AI and
security product lines. - Wynn Resorts, Limited Reports First Quarter 2025 Results
Wynn Resorts, Limited (NASDAQ: WYNN) (“Wynn Resorts” or the “Company”) today reported financial results
for the first quarter ended March 31, 2025. Operating revenues were $1.70 billion for the first quarter of 2025,
a decrease of $162.5 million from $1.86 billion for the first quarter of 2024. Net income attributable to Wynn
Resorts, Limited was $72.7 million for the first quarter of 2025, compared to net income attributable to Wynn
Resorts, Limited of $144.2 million for the first quarter of 2024. Diluted net income per share was $0.69 for the
first quarter of 2025, compared to diluted net income per share of $1.30 for the first quarter of 2024. Adjusted
Property EBITDAR was $532.9 million for the first quarter of 2025, compared to Adjusted Property EBITDAR of
$646.5 million for the first quarter of 2024. “Our first quarter results reflect continued strength throughout our
business,” said Craig Billings, CEO of Wynn Resorts, Limited. “In Las Vegas, where we recently celebrated the
resort’s 20th anniversary, the team delivered healthy results against a record prior year comparison which
reflected the Las Vegas Super Bowl. In Macau, while VIP hold negatively impacted results, we held market share
in our expected range, and announced an increased dividend from Wynn Macau, Limited, reflecting the strong
free cash flow generated by the business. In addition, construction of our growth project in the UAE, Wynn Al
Marjan Island, continued to advance with the hotel tower reaching the forty-seventh floor. At the same time
we continued to return capital to shareholders through our regular quarterly dividend and the repurchase of
$200 million of stock in the quarter.” - Celsius Q1 2025 presentation: Revenue declines 7% as Alani Nu acquisition closes
Celsius Holdings Inc (NASDAQ:CELH) presented its Q1 2025 financial results on May 6, highlighting a period of
transition as the company completed its acquisition of Alani Nu while facing domestic sales challenges. The
energy drink maker reported a 7% year-over-year revenue decline but maintained strong gross margins and
continued international expansion. The presentation comes as Celsius stock has experienced significant
volatility, with premarket trading showing a 6.7% decline to $31.62. This follows a period of recovery after the
company’s Q4 2024 results, which had previously triggered a 31.81% surge in the stock price. Celsius reported
Q1 2025 revenue of $329.3 million, a 7% decrease from $355.7 million in the same period last year. The
company attributed this decline to “early Q1 velocity softness and structure of PEP incentives,” referencing its
distribution partnership with PepsiCo (NASDAQ:PEP).
