Tech Stocks Rebound as US Tariff Talks Boost Market Sentiment

Mixed Signals in US Futures as Investors Watch Trade Developments

US stock index futures were mixed on Thursday morning, with tech stocks bouncing back after a sharp drop led by chipmaker Nvidia. The recovery was fuelled by hopes that the US could strike new tariff agreements with key trading partners, easing fears of a full-blown trade war.

At 10:00 GMT:

• Dow Jones Futures fell by 70 points (−0.2%)
• S&P 500 Futures rose 40 points (+0.8%)
• Nasdaq 100 Futures jumped 195 points (+1.2%)

Wall Street Still Recovering from Nvidia-Driven Slide

Markets had suffered steep losses on Wednesday after Nvidia revealed a significant quarterly charge due to new US export restrictions, causing tech stocks to tumble. Hawkish remarks by Federal Reserve Chair Jerome Powell also dampened sentiment.

The Nasdaq Composite is now down roughly 19% from its recent high — nearing bear market territory.

Trade Talks Offer a Glimmer of Hope

Positive momentum returned on Thursday, just ahead of the Good Friday holiday, as optimism grew over trade discussions between the US and its major global partners.

• President Trump reported “big progress” in talks with Japan, which is seen as a potential model for future tariff negotiations.
• European Commission President Ursula von der Leyen signalled a willingness to negotiate, rather than escalate.
• China has also reportedly shown interest in reopening trade talks — but expects more respectful engagement from the White House.

Fed Holds Firm on Rates Amid Tariff Concerns

Fed Chair Jerome Powell warned that the central bank does not plan to cut interest rates any time soon. He cited inflation risks and economic uncertainty caused by the ongoing tariff disputes.

“Our duty is to keep long-term inflation expectations well anchored,” Powell told the Economic Club of Chicago.

Recent data showed US retail sales rose 1.4% in March, as consumers rushed to buy vehicles before tariffs potentially push prices higher.

Key Economic Data and Earnings in Focus

Investors are also watching a range of economic indicators and company results due Thursday, including:

• Philadelphia Fed’s April Manufacturing Survey
• Weekly jobless claims and housing market data
• Earnings reports from American Express, Blackstone, and Truist Financial

Separately, Taiwan Semiconductor Manufacturing posted a 60% jump in Q1 profit, driven by soaring demand for AI chips — and forecast even stronger growth in the coming quarter.

Oil Prices Rise on Iran Sanctions

Crude oil prices edged higher and are on course for their first weekly gain in three weeks.

As of Thursday morning:

• Brent crude: up 0.9% to $66.43 per barrel
• WTI crude: up 1.1% to $63.15 per barrel

The gains follow new US sanctions on Iranian oil exports, including action against Chinese firms involved in refining Iranian crude. This has raised concerns about global supply disruptions.

Source: (Investing.com)