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Wall Street jumps with tech boost; yen falls on BOJ gloom

Gold prices fell and Wall Street stocks rose on Thursday, as investors' risk appetite was boosted by solid earnings reports from the big tech companies.

The Nasdaq, which is dominated by tech companies, rose 2.4% on the back of positive quarterly results.

The S&P 500, the bellwether index of the stock market, is on course to extend its winning streak to eight consecutive sessions - its longest since August 2024.

Dollar rose as yen fell after Bank of Japan cut growth forecasts because of uncertainty surrounding U.S. Tariff policy.

May Day holiday has caused a drop in trading across Asia and Europe.

After the steep tariffs announced by U.S. president Donald Trump on April 2, which shook world markets throughout last month, there were no major announcements about trade negotiations.

Oliver Pursche is a senior vice president with Wealthspire Advisors in New York. He said: "I think that the news about tariff negotiations is going to be similar to what we heard over the past few days. That is, lots of deals have been done but they are waiting for the other party to sign off, which to me seems to indicate there has not been a deal made."

They may be working on agreements, but until they put ink on paper, there is no agreement.

The first quarter earnings season has now reached its midpoint, with 375 S&P 500 companies having already reported. LSEG reports that 74% of those companies have beaten analysts' expectations.

Apple Inc. and Amazon.com will report their quarterly earnings after the closing bell. They are the fifth and six members of the "magnificent Seven" to do so. Nvidia is the last member to be expected to announce its first quarter earnings on May 28, which will leave the chipmaker.

The economic situation in the United States is still in a contraction. Meanwhile, jobless claims have increased much more than analysts had expected.

The Dow Jones Industrial Average increased 311.33 points or 0.77% to 40,981.02, while the S&P 500 rose 76.53 or 1.37% to 5,645.25, and the Nasdaq composite was up 413.81 or 2.36% to 17,860.15.

HOLIDAY MAY DAY

May Day is a holiday that many markets around the world, including in Europe, are closed.

The MSCI index of global stocks rose by 5.63 points or 0.68% to 839.17.

The pan-European STOXX 600 Index was flat while Europe's FTSEurofirst 300 Index fell by 1.24 points or 0.06%.

Emerging market stocks dropped 2.91 points or 0.26% to 1,109.93. MSCI's broadest Asia-Pacific share index outside Japan fell 0.19% to 579.92. Japan's Nikkei climbed 406.92 points or 1.13% to 36,452.30.

After the BoJ downgraded its outlook, the greenback gained after the BoJ reduced the prospects for future rate increases.

The dollar index (which measures the greenback in relation to a basket including the yen, the euro and others) rose by 0.55%, reaching 100.22. However, the euro fell 0.41%, at $1.127.

The dollar gained 1.6% against the Japanese yen to reach 145.36.

The yield on the benchmark 10-year U.S. notes increased 2.3 basis point to 4,198% from 4,175% at late Wednesday. The 30-year bond rate increased by 4.5 basis points from 4.68% to 4.7248%.

The yield on the 2-year bond, which is usually in line with expectations of interest rates for the Federal Reserve (Fed), rose by 1.8 basis points, to 3.639% from 3.621% at late Wednesday.

The oil price has reversed its earlier decline on the back of fading fears about a softening in demand.

U.S. crude climbed 0.93%, to $58.77 per barrel. Brent rose to $61.52 a barrel, up by 0.75% for the day.

The gold price continued to fall, reaching a new two-week-low as investors shifted away from the metal of safety.

Spot gold dropped 1.94% to $3.224.06 per ounce. U.S. Gold Futures fell 2.43% to an ounce of $3,224.70.

(source: Reuters)