US Stocks Rally Late on GDP Contraction and Tech Earnings

Market Performance and Economic Data

• 📈 The Dow Jones Industrial Average and S&P 500 closed higher on Wednesday after a late rally, reversing earlier declines.
• 📉 The Nasdaq Composite finished the session marginally lower.
• ⚠️ The market opened significantly in the red following a report that US GDP contracted for the first time in three years in the first quarter.

Impact of Tariffs and Trade Deals

• ⚖️ Data releases this month have highlighted increasing uncertainty surrounding the impact of President Donald Trump's tariffs.
• 🤝 Robert Kzo, CEO of the Wealth Alliance, suggested Trump could reverse negative sentiment by securing progress on trade deals during his 90-day reprieve.

Tech Earnings and AI Investment

• 🚀 Investors focused on earnings from major tech companies, with Meta Platforms shares rising 6% in extended trading after beating revenue estimates.
• 💡 Microsoft shares also surged nearly 6% after its results surpassed revenue expectations, driven by increased business spending on AI tools.
• ⚠️ Conversely, Super Micro Computer shares tumbled 11.5% after cutting its third-quarter forecast due to delays in customer spending on AI.
• 📉 Snap Inc. shares plummeted nearly 12.5% after the company announced it would not provide a second-quarter forecast, joining a trend of companies withdrawing outlooks.