Wall Street revival: How the tech titans rekindled the US stock market

2 minutes read

25 April 2025

Wall Street revival: How the tech titans rekindled the US stock market

It began as any other nervous morning on Wall Street. Investors glanced at their screens, preparing themselves for another series of trade war news and earnings surprises. But by the closing bell, sentiment had changed. The US stock market had pulled off a remarkable rally, with tech giants leading the charge and optimism, however cautious, creeping back into the conversation.

Tech stocks are taking the driver’s seat.

The story of Thursday’s surge is, at its heart, a story about Big Tech. The S&P 500 climbed 1.4%, while the Nasdaq soared 1.9%, thanks to a synchronised leap from companies like Nvidia, Meta, Amazon, Tesla, and Microsoft. Each of these names posted gains of around 2%, shaking off weeks of pressure from trade tensions and regulatory noise. Stock market performance graph showing the Nasdaq, S&P 500, and Dow Jones movements with a focus on the upward trend in late April, displaying a positive shift in the market.

“Tech stocks have been battered all year, but when they move, they move fast,” said Ross Mayfield, investment strategist at Baird. “It’s like the market was waiting for a reason to believe again, and today, it found one.”

Investors latched onto comments from President Trump and Treasury Secretary Scott Bessent, who hinted at a possible thaw in US-China trade relations. Trump’s willingness to “ease up” on his confrontational approach, as reported by the Economic Times, sent a wave of relief through the markets, even as China’s Ministry of Commerce insisted there were no ongoing talks and called for the removal of “unilateral” tariffs.

Texas Instruments and ServiceNow added fuel to the rally, both beating earnings expectations and seeing their stocks surge by more than 6% and 15%, respectively. “Strong earnings from key tech players can quickly change the narrative,” noted Barclays strategist Venu Krishna. “We’ve seen tech lag the S&P 500 during downturns, but it almost always leads the recovery.”

Optimism with a side of caution

Despite the excitement, not everyone is convinced this is the start of a new bull run. The rally comes on the heels of a tough month, since the latest round of tariffs was announced in early April, the S&P 500 is still down 4%, the Dow is down 5.7%, and the Nasdaq is down 3.6%. The International Monetary Fund’s recent cut to Asia’s 2025 growth forecast, citing trade uncertainty, only adds to the global anxiety.

“While we may have moved past the peak of tariff uncertainty, we remain on a high plateau that will significantly influence earnings growth,” said Bhanu Baweja, strategist at UBS. “Valuations are likely to decline further as the notion of US exceptionalism diminishes.”

Even as tech stocks bounce, experts warn that the market may just be reacting to hopeful rhetoric rather than real progress. “I don’t trust the move,” Mayfield cautioned. “We need to see actual policy changes, not just headlines.”

And there are still pockets of pain. IBM dropped 6% despite beating earnings, weighed down by a cautious outlook. Meanwhile, underperformers like Comcast and Tractor Supply hit new 52-week lows, a reminder that the recovery isn’t universal.

But for now, the mood has shifted. The “Magnificent Seven” tech stocks have added over $840 billion in market value in just two days. As earnings season rolls on, all eyes are on Alphabet, Microsoft, Meta, Apple, and Amazon to see if this rally has legs.

The tale of this week's market is a tale of Wall Street tradition—hope, fear, and the continuous quest for the next trigger. Whether this marks the beginning of a long-standing turnaround or simply a respite from the storm, one fact is certain: Tech is again centre stage, and investors are watching every step.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.