Dow Soars 500 Points as Wall Street Rallies Amid Eased Trade Tensions
April 25, 2025 – By Amalya Dubrovsky and Ines Ferré
In an impressive turn of events, the U.S. stock market continued its upward trajectory on Thursday, with the Dow Jones Industrial Average surging nearly 500 points, marking the third consecutive day of gains for Wall Street. Positive sentiment was largely fueled by easing trade tensions and indications from Federal Reserve officials regarding potential interest rate cuts.
Market Performance Overview
The Dow Jones Industrial Average (^DJI) closed up 1.2%, representing a rise of approximately 500 points. The benchmark S&P 500 (^GSPC) saw a gain of 2%, while the tech-heavy Nasdaq Composite (^IXIC) experienced a notable increase of around 2.7%. The collective performance reflects a robust market rally, significantly driven by the so-called "Magnificent Seven" megacap stocks, which all recorded gains during the trading session.
Over the last three days, the bullish trend has been particularly pronounced, with the Nasdaq climbing over 8%, closely followed by the S&P 500 with just over 6%, and the Dow witnessing a rise exceeding 5%.
Factors Contributing to the Market Surge
One of the critical factors contributing to the positive market sentiment was a report indicating that China might pause its 125% tariff on selected U.S. goods. This development has been received with optimism by investors, as it suggests a potential thawing of trade relations between the two nations. Additionally, discussions surrounding potential trade deals with India and South Korea could create further favorable conditions, despite ongoing uncertainties regarding negotiations with China.
Another significant driver of market momentum was the increasing expectations of a Federal Reserve interest rate cut. Federal Reserve Bank of Cleveland President Beth Hammack hinted that policy makers might consider a rate reduction in June, contingent on upcoming economic data supporting such a move. This potential shift in monetary policy has spurred a sense of optimism among investors about future economic stability.
Corporate Earnings Highlight
After the market closed, Alphabet Inc., the parent company of Google (GOOG, GOOGL), announced its fiscal first-quarter earnings, exceeding analysts’ expectations for both revenue and earnings per share. The company reported earnings per share of $2.81 and revenue of $90.2 billion, surpassing the anticipated EPS of $2.01 and revenue of $89.1 billion. Furthermore, Alphabet revealed a 5% increase in dividends and authorized an impressive $70 billion stock buyback program, further bolstering investor confidence. Following these announcements, Alphabet’s shares surged over 3% in after-hours trading.
Conversely, semiconductor giant Intel (INTC) reported mixed results, meeting estimates for the first quarter but providing a disappointing outlook for the second quarter, which caused its stock to drop over 6% in after-hours trading. The company’s CFO, David Zinsner, attributed the downgrade to the current macroeconomic environment’s heightened uncertainty.
Conclusion
As Wall Street rallies for the third consecutive day, the combined effect of eased trade tensions, potential Fed rate cuts, and strong corporate earnings is generating a wave of optimism among investors. With the markets showing resilience in the face of uncertainty, all eyes will remain on upcoming economic indicators and corporate earnings reports that could further influence market direction in the coming weeks.
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