The stock market has been volatile over the past few months. While the markets loved the re-election of President Donald Trump, the worry over a potential trade war has caused volatility over the past few weeks. However, this week has seen a rally thanks to the tech stocks. As the markets kicked off Thursday, the rally continued for a third day in a row.
Stock Market Rallies Again Behind Tech Stocks
There have been plenty of mixed signals coming from the Trump administration about tariffs. However, Big Tech doesn’t seem worried about it right now. The Dow Jones rose 0.7% while the S&P 500 jumped 1.3%. The biggest gain came from the tech-heavy Nasdaq Composite, which rose 1.8%. Additionally, the “Magnificent Seven” all rose on Thursday morning.
The S&P 500 has had a great week so far. It has rallied 4% in the last two days, hanging onto the optimism that the massive tariffs could end as trade talks open. President Trump floated the idea of slashing tariffs on China, which caused a surge late Wednesday. However, it was stymied by Treasury Secretary Scott Bessent saying there was no offer from the White House to de-escalate the trade war. China continued to demand the removal of all tariffs.
What To Watch For
Will this stock market rally continue? We could get our first indication from the Alphabet earnings, which are scheduled to be released today. Investors don’t expect that these earnings will be hit by the tariffs quite yet, but experts will be watching for warning signs. If there are some red flags, it could affect the markets in a significant way.
The upcoming trade talks with different countries will also be something to watch. Reports indicate South Korea is planning talks with the president today, but nothing has been confirmed. If the United States comes to an agreement with other countries and eliminates the tariffs, the stock market will likely continue to rally.
Final Thoughts
The stock market is a hot-button issue right now. Fears about the impact a trade war could have on many Americans. Seeing the rally has helped, but everything right now is being met with cautious optimism.
