US stocks close higher amid trade war optimism and earnings. Tesla pops.
U.S. stocks closed higher after a mixed start to the day as China appeared to back off some of its tariff demands and amid a string of earnings reports, including stronger-than-expected results from Google parent Alphabet.
The blue-chip Dow added 0.05%, or 20.10 points, to 40,113.50, and the broad S&P 500 gained 0.7%, or 40.44 points, to close at 5,525.21. The tech-laden Nasdaq Composite jumped 1.3%, or 216.90 points, to reach 17,382.94. All three indexes closed the week higher.
The benchmark 10-year Treasury yield fell to 4.266%. Gold, which has surged to multiple records in recent weeks because of its status as a safe haven and a hedge against a declining U.S. dollar, slipped 1.5%.
On Friday, media reports emerged that China was easing tariffs on some U.S. semiconductors, along with certain U.S. pharmaceuticals. Bloomberg reported that Beijing is also considering tariff relief on medical gear and chemicals.
Throughout the day, the White House and Beijing traded public jabs over whether talks were taking place. President Donald Trump said “200 deals” on trade will be announced “over the next three to four weeks" and that talks with China continue. He also told reporters that the U.S. was "very close" to a deal with Japan.
Corporate news
- Tesla shares closed 9.8% higher after the Transportation Department released new rules on self-driving cars. The stock is still down almost 30% so far this year, however.
- Google parent Alphabet's results from the first three months of the year topped analysts' expectations. Shares gained 1.6%.
- Intel issued disappointing guidance for the current quarter and said it’s planning to cut its operational and capital expenses. It said it sees a probability for a recession due to tariffs. Shares lost nearly 7%.
- T-Mobile added fewer wireless subscribers than expected in the first quarter. Shares of the wireless company slid more than 11%.
- Gilead Sciences reported weaker-than-expected sales in the first three months of the year even as earnings beat forecasts. The stock lost nearly 3%.
- Skechers withdrew its full-year guidance due to economic uncertainty from global trade policies. The sneaker maker fell 5.4%.
- Facebook-parent Meta Platforms cut staff in its Reality Labs division, CNBC reported. The stock rose 2.7%.
Cryptocurrency
Bitcoin supporters are lobbying the Swiss National Bank to hold bitcoin in its reserves, Reuters reported.
“Holding bitcoin makes more sense as the world shifts towards a multipolar order, where the dollar and the euro are weakening,” Luzius Meisser, a board member of cryptocurrency broker Bitcoin Suisse and supporter of the referendum, said in the report.
Bitcoin was last up 1.7% at $95,124.
Economic news
Consumer sentiment was at the lowest since 2022, which marked the peak of the post-pandemic inflation spike, in the second April reading from the University of Michigan. “Consumers perceived risks to multiple aspects of the economy, in large part due to ongoing uncertainty around trade policy and the potential for a resurgence of inflation looming ahead,” the Michigan researchers wrote.
The story was updated with new information.
Medora Lee is a money, markets, and personal finance reporter at Paste BN. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.