On May 2, Eastern time, after the Federal Reserve announced that interest rates would remain unchanged, the market turned more attention to economic data and corporate performance, and the three major U.S. stock indexes rebounded led by technology and chip stocks, and finally closed up collectively.
Apple's performance exceeded expectations, Cook spoke out! and announced the largest $110 billion share repurchase plan in history, and Apple rose more than 7% after hours.
Chip giant Qualcomm's performance was better than expected across the board, rising nearly 10%.
The Nasdaq Golden Dragon China Index rose more than 6%, hitting a new closing high since the end of November last year.
Corporate performance was better than expected on the whole, and the three major U.S. indexes collectively closed higher
On May 2, Eastern time, after the Federal Reserve announced that interest rates would remain unchanged yesterday, investors expected more corporate earnings reports and the upcoming non-farm payrolls report on Friday, and U.S. stocks collectively closed higher.
At the close, the Dow rose 322.37 points, or 0.85%, to 38,225.66, the Nasdaq rose 235.48 points, or 1.51%, to 15,840.96, and the S&P 500 added 45.81 points, or 0.91%, to 5,064.20.
Angelo Kourkafas, senior investment strategist at Edward Jones, said: "The market is relieved that the Fed is not as hawkish as people feared. He also pointed out that the base case remains that rate cuts will be delayed, but not necessarily gone.
According to CME Group's Fed Watch tool, futures markets are pricing in the Fed not expecting to cut rates until at least September.
Investors' attention now turns to the April non-farm payrolls report, which will be released on the 3rd. Economists surveyed by Dow Jones expect employment to rise by 240,000, slowing from 303,000 new jobs in March.
Anthony Saglimbene, chief market strategist at Ameriprise, said that in recent weeks, there have been concerns that the Federal Reserve may delay its interest rate cut plan due to hot economic and labor market data, and Wall Street will be watching closely for signs of easing wage and price pressures.
In terms of corporate results, Q1 earnings season is drawing to a close. As of the morning of the 2nd, 373 companies in the S&P 500 have announced results. LSEG data shows that 77% of these companies beat their earnings and 61% beat their revenues. Based on the combined growth rate, companies are expected to deliver year-on-year earnings growth of 6.9% and revenue growth of 3.6%.
Apple has big news again
On May 2, Eastern time, Apple closed up 2.2%. After hours, Apple announced its results. According to the report, Apple's net profit for the second fiscal quarter fell 2.5% to $23.6 billion, with earnings per share of $1.53, higher than the market expectation of $1.5, and revenue fell 4% year-on-year to $90.75 billion, but still higher than the expected $90.01 billion.
Apple's quarterly services revenue hit an all-time high, up 14% year-on-year to $23.9 billion, higher than expectations of $23.27 billion. Mac revenue also increased, up 4% to $7.5 billion, higher than expectations of $6.9 billion. Revenue from the rest of the segments declined, with iPhone revenue falling to $45.96 billion, slightly below expectations of $46 billion, iPad revenue falling 17% to $5.6 billion, below expectations of $5.91 billion, and other products revenue falling 10% to $7.9 billion versus expectations of $8.08 billion.
By country, Apple's revenue in Greater China fell 8.1% to $16.37 billion, higher than expectations of $15.3 billion, while U.S. revenue was nearly flat, down 1.4% to $37.27 billion. European revenue rose 0.7% to $24.1 billion.
At the same time, Apple announced a $110 billion share repurchase program, the largest in Apple's history, an increase of 22% from last year's $90 billion buyback.
Apple CEO Tim Cook said at the earnings conference that he has a positive view of the long-term prospects of the Chinese business, which is the most competitive market in the world, and that there are other aspects of the business in China that need to be worked on in addition to the iPhone.
He also revealed that significant investments are being made in the field of generative AI.
Apple rose more than 7% after hours. As of press time, the increase is still more than 6%.
Chip giant Qualcomm's performance was better than expected across the board, up nearly 10%
On May 2, Eastern time, chip giant Qualcomm announced its results, which were better than expected, up 9.74%, the largest one-day increase since November 2021, at $180.1, with the latest total market value of $200.992 billion.
On the news side, Qualcomm's financial report shows that its second-quarter revenue was $9.389 billion, a year-on-year increase of 1%, net profit was $2.326 billion, a year-on-year increase of 37%, and non-GAAP adjusted net profit was $2.761 billion, a year-on-year increase of 14%.
Qualcomm's fiscal second-quarter revenue and adjusted earnings per diluted share both beat Wall Street analysts' expectations, and its outlook for fiscal third-quarter revenue and adjusted earnings per share both beat expectations.
Chinese concept stocks exploded!
On May 2, Eastern time, Chinese concept stocks rose, and the Nasdaq China Golden Dragon Index rose more than 6%, hitting a new closing high since the end of November last year.
In terms of individual stocks, Xiaopeng Motors and Bilibili rose by more than 15%, Shell rose by more than 12%, JD.com rose by more than 11%, Pinduoduo rose by more than 10%, Li Auto rose by nearly 10%, Weibo rose by more than 8%, Good Future rose by more than 7%, and Weilai and Alibaba rose by more than 6%.
(Ivan finishing)
Editor: Joey
Review: Muyu