9 Days of Green: What Just Happened?

Published on 2 May 2025 at 23:36

9 Days of Green: What Just Happened?

The U.S. stock market has been on a winning streak! The S&P 500 just rose for 9 days in a row, its best run since 2004. That’s a big deal. Here's why:

  • Why the rise? A mix of strong earnings from big tech companies, signs that consumers are still spending, and hopes for better U.S.–China trade relations.

  • What does it mean? When the market rises this much, it often signals investor confidence—even in a tricky economic environment.

💼 Jobs Up, Economy Down? A Mixed Picture

Some recent government reports are sending mixed signals:

  • Jobs report: In April, the U.S. added 177,000 jobs, more than expected. That’s good news!

  • GDP shrank: But the economy also contracted last quarter for the first time in years. That’s a warning sign.

  • Inflation: It’s cooling, but still not at the Fed’s 2% goal.

  • Fed decision ahead: The Federal Reserve meets next week to decide on interest rates. Most expect no rate cut for now, but pressure is building.

🇨🇳 Trade Talks: A New Hope?

There’s a quiet but important shift happening in global trade:

  • The U.S. and China may be working to restart trade talks.

  • According to reports, 25% of tariffs may be cut.

  • That’s good news for companies that rely on imports—especially Apple and Amazon, which face rising costs due to tariffs.

🧠 Big Tech: AI Drives the Winners

Big tech companies just reported their earnings—and AI is clearly the star.

🚀 Winners

  • Microsoft (MSFT): Cloud and AI businesses are booming. Revenue jumped 13% to $61.9B.

  • Meta (META): Grew sales by 27%, and is spending big on AI infrastructure.

  • Duolingo (DUOL): The language app soared 21% after reporting strong growth and showing off new AI learning tools.

⚠️ Struggles

  • Apple (AAPL): Revenue was up, but the company warned about $900M in added tariff costs. Shares fell.

  • Amazon (AMZN): Revenue rose, but guidance was cautious due to rising import prices.

📌 Takeaway: Microsoft and Meta are leading the AI charge. Apple and Amazon face more global headwinds.

🤖 AI Frenzy: Nvidia Demand Still Strong

Some worried that demand for AI chips was slowing, but tech giants said otherwise:

  • Meta raised its 2025 spending plans to up to $72 billion, much of it on AI infrastructure.

  • Microsoft’s Azure AI revenue jumped.

  • All this shows strong demand for Nvidia’s GPUs, even though Nvidia stock has dropped from its highs.

🧓 The End of an Era: Warren Buffett to Retire

Warren Buffett, age 94, says he will step down as CEO of Berkshire Hathaway at the end of 2025.

  • His chosen successor is Greg Abel.

  • Buffett will stay involved and won’t sell any of his shares (worth $164 billion).

  • Berkshire now holds a record $350 billion in cash, ready to invest.

📚 Fun Fact: Buffett bought his first stock at age 11, and turned a textile company into a $1.2 trillion empire.

🛢 Oil and Global Markets

  • OPEC+ plans to raise oil output by 411,000 barrels/day in June.

  • Global markets also rose:

    • Europe’s Stoxx 600: +1.67%

    • Japan’s Nikkei 225: +1.04%

    • Hong Kong’s Hang Seng: +1.74%

This adds to the positive sentiment worldwide.

🧠 Final Thoughts 

  • Markets are in rally mode, but not without risks.

  • AI and Big Tech are leading the charge, especially companies like Microsoft and Meta.

  • Keep an eye on the Fed meeting next week—interest rates affect everything from mortgages to stock prices.

  • Trade talks could make a big difference, especially for companies exposed to China.

  • And don't forget: long-term investing wins over time, even in uncertain periods like this.

 

«