Big Tech Is Back in S&P 500 Driver's Seat as Profit Engines Hum
The same technology giants that helped drag the S&P 500 to the brink of a bear market in April are giving the recovery in US equities some legs.
Nvidia Corp. put a bow on a better-than-expected earnings season for Big Tech last week by delivering a strong outlook for revenue, despite US restrictions on sales of its chips in China. With Nvidia and Microsoft Corp. rallying back to the cusp of record highs, traders are betting the group is poised to lift the broader market.
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Yahoo
24 minutes ago
- Yahoo
China's factory activity cools in May as US tariffs hit
BEIJING (Reuters) - China's factory activity in May shrank for the first time in eight months, a private-sector survey showed on Tuesday, indicating U.S. tariffs are now starting to directly hurt the manufacturing superpower. The Caixin/S&P Global manufacturing PMI fell to 48.3 in May from 50.4 in April, missing analysts' expectations in a Reuters poll and marking the first contraction since September last year. It was also the lowest reading in 32 months. The 50-mark separates growth from contraction. The result is broadly in line with China's official PMI released on Saturday that showed factory activity fell for a second month. A federal appeals court temporarily reinstated the most sweeping U.S. tariffs, a day after a trade court ruled that President Donald Trump had exceeded his authority in imposing the duties and ordered an immediate block on them. Two weeks after breakthrough negotiations that resulted in a temporary truce in the trade war between the world's two biggest economies, U.S. Treasury Secretary Scott Bessent said on Thursday the talks are "a bit stalled". China's Premier Li Qiang last week said the country is mulling new policy tools, including some "unconventional measures", which will be launched as the situation evolves. According to the Caixin survey, new export orders shrank for the second straight month in May and at the fastest pace since July 2023. Producers said the U.S. tariffs restrained global demand. That dragged down overall new orders to the lowest since September 2022. Factory output meanwhile contracted for the first time since October 2023. Employment in the manufacturing sector declined at the sharpest pace since the start of this year, as producers cut headcount. Output prices have fallen for six straight months due to intense market competition. In the auto industry, for example, an intensifying price war in China has stoked fears of a long-anticipated shake-out in the world's largest car market. Robin Xing, Chief China Economist at Morgan Stanley, said this underscores how supply-demand imbalances continue to fuel deflation. "There is growing rhetoric about the need for rebalancing, but recent developments suggest the old supply-driven model remains intact. Thus, reflation is likely to remain elusive." Surprisingly, export charges rose for the first time in nine months, marking the fastest growth since July 2024, as companies cited rising logistics costs and tariffs. Overall, business optimism improved in terms of future output, as they expect the trade environment to improve with market expansion. Sign in to access your portfolio
San Francisco Chronicle
29 minutes ago
- San Francisco Chronicle
Asian markets rise as US stock indexes near records amid easing trade tensions
Shares rose early Tuesday in Asia after U.S. stock indexes drifted closer to records, while oil prices extended gains. Beijing and Washington dialed back trade friction as the U.S. extended exemptions for tariffs on some Chinese goods, including solar manufacturing equipment, that U.S. industries rely on for their own production. The U.S. Trade Representative extended those exemptions, which were due to expire on May 31, by three months through Aug. 31. Still, China criticized the U.S. on Monday over moves it alleged harmed Chinese interests, including issuing AI chip export control guidelines, stopping the sale of chip design software to China, and planning to revoke Chinese student visas. Hong Kong's Hang Seng gained 1.1% to 23,417.39, while the Shanghai Composite index added 0.3% to 3,356.36. In Tokyo, the Nikkei 225 advanced 0.6% to 37,683.19. South Korean markets were closed for a snap presidential election triggered by the ouster of Yoon Suk Yeol, a conservative who now faces an explosive trial on rebellion charges over his short-lived imposition of martial law in December. Australia's S&P/ASX 200 was up 0.7% to 8,475.50. In Taiwan, the Taiex gained 1.4%. On Monday, U.S. stock indexes drifted closer to their records following a stellar May, Wall Street's best month since 2023. The S&P 500 rose 0.4% to 5,935.94 after erasing an early loss from the morning. The Dow Jones Industrial Average added 0.1% to 42,305.48. The Nasdaq composite climbed 0.7% to 19,242.61. Indexes had fallen close to 1% in the morning following some discouraging updates on U.S. manufacturing. President Donald Trump has been warning that U.S. businesses and households could feel some pain as he tries to use tariffs to bring more manufacturing jobs back to the country, and their on-and-off rollout has created lots of uncertainty. But stocks rallied back as the day progressed. Nvidia climbed 1.7%, and Meta Platforms rose 3.6%, for example. Oil prices have gained as attacks by Ukraine in Russia raise uncertainty about the flow of oil and gas around the world. Early Tuesday, U.S. benchmark crude oil was up 62 cents at $63.14 per barrel. Brent crude, the international standard, picked up 57 cents to $65.19 per barrel. Markets took in stride fresh salvos between the world's two largest economies, just a few weeks after the United States and China had agreed to pause many of their tariffs that had threatened to drag the economy into a recession. That followed President Donald Trump's accusation at the end of last week, where he said China was not living up to its end of the agreement that paused their tariffs against each other. Trump on Friday told Pennsylvania steelworkers he's doubling the tariff on steel imports to 50% to protect their industry, a dramatic increase that could further push up prices for a metal used to make housing, autos and other goods. That helped stocks of U.S. steelmakers climb. Nucor jumped 10.1%, and Steel Dynamics rallied 10.3%. On the losing side of Wall Street were automakers and other heavy users of steel and aluminum. Ford fell 3.9%, and General Motors reversed by 3.9%. Lyra Therapeutics soared nearly 311% for one of the market's biggest gains after reporting positive late-stage trial results of an implant to treat chronic sinus inflammation in some patients. In the bond market, Treasury yields rose as worries continue about how much debt the U.S. government will pile on due to plans to cut taxes and increase the deficit. The yield on the 10-year Treasury climbed to 4.44% from 4.41% late Friday and from just 4.01% roughly two months ago. That's a notable move for the bond market. Besides making it more expensive for U.S. households and businesses to borrow money, such increases in Treasury yields can deter investors from paying high prices for stocks and other investments. Yields had dipped briefly in the morning, before rallying back, following the updates on manufacturing, which suggested that effects of Trump's tariffs are taking root in the economy. A report from S&P Global on manufacturing came in better than expected, though uncertainty caused by tariffs has worries high about supplier delays and rising prices. Also early Tuesday, the dollar rose to 143.10 Japanese yen from 142.71 yen. The euro slipped to $1.1438 from $1.1443. ___
CNET
34 minutes ago
- CNET
My Favorite Smartwatch Is Half Off at Walmart Right Now
My phone pings constantly from where it's plugged in across the room. But I've got my Galaxy Watch 4 on my wrist, so I can check to see who's pinging me, which app the notifications are from and whether it's important enough to merit my standing up and walking the dozen or so steps to unplug my phone and look, or just respond on my smartwatch (or swipe the notification away). Smartwatches are becoming an essential tech item, but most people don't need the latest and greatest version to get what they need. One of the best ways to buy a thoughtful tech gift without spending too much money? Choose a previous version of a current device, especially if the earlier model would work for you. So if you're searching for a cool gift for someone (or yourself), might I suggest my favorite smartwatch, the Samsung Galaxy Watch 4? Thanks to a screaming deal at Walmart, the 40mm Samsung Galaxy Watch 4 is only $99 right now. Why I love the Samsung Galaxy Watch 4 Sure, it's not the latest model of the Samsung Watch. That would be the Galaxy Watch 7 or Galaxy Watch Ultra. But it still has all the main features, including ECG, blood pressure monitoring, sleep monitoring, Google integration for most things and Samsung Health. I'm not a fitness fanatic, so I don't need all the latest tracking features or even the improved battery life and bigger screen size of the Watch 7, which has a list price of $300, but is going for just $209 right now if you want the upgrade. The Galaxy Watch 4 has the fitness tracking I need without being overly complex. (Though it has advanced workout tracking for six modes including running, rowing and swimming, if you like those auto-detected tracking features.) For everyday use, I can check my notifications and respond, take hands-free calls, track sleep and skip between songs when listening in Spotify. Oh, and check the time. If you're looking for a wearable, it's the one I'd recommend checking out before looking into the latest version of the Galaxy Watch series. One caveat: Some people have complained lately that their battery is depleting quickly. Samsung has advice on how to run a diagnostic on your watch and fix the issue. Why the Galaxy Watch 4 makes a fun gift The Galaxy Watch 4 isn't going to be a gift you give to the tech enthusiast in your family or an Apple fan, but it's perfect for anyone who wants a smartwatch but doesn't want all the bells and whistles, or someone who doesn't know what they want in a smartwatch. For more, here are our other favorite smartwatches. If you're looking to gift someone a new phone, CNET has rounded up the best deals on the Samsung Galaxy S25. If this isn't right for the person you're shopping for right now, check out our editors' picks for the best gifts for grads and the best gifts for Father's Day for more ideas.
