New York Stock Exchange, IT giants' performance varies with gains and losses alternating

The New York stock market opened on the 30th, with positive corporate earnings and Middle Eastern geopolitical tensions becoming intertwined, leading to divergence across sectors and mixed performance in major indexes.

As of 10:35 a.m. on the 30th, the Dow Jones 30 Industrial Average on the New York Stock Exchange was up by 610.03 points (1.25%) from the previous trading day, to 49,471.084. The S&P 500 index rose 5.34 points (0.07%) to 7,141.29; the Nasdaq Composite fell 135.49 points (0.55%) to 24,537.75. Overall, stronger-than-expected quarterly corporate earnings supported investor sentiment, but pressure surrounding large technology stocks still remained.

In particular, the market is closely scrutinizing the earnings reports of major information technology companies released after the previous day’s close. Alphabet’s first-quarter revenue came in at $109.9 billion, exceeding market expectations of $107.2 billion. Earnings per share were $5.11, far above the expected $2.63, and the stock price rose 4.88%. By contrast, although Meta and Microsoft’s revenues themselves also beat market expectations, the burden from capital expenditures driven by expanded artificial intelligence investments became more pronounced. Meta raised its forecast for this year’s capital expenditures from the prior $115 billion to $135 billion to a range of $125 billion to $145 billion, and its stock fell 9.94%. Microsoft’s fiscal third-quarter revenue was $82.89 billion, above expectations, but device investment during the same period reached $31.9 billion, up sharply 49% year over year, which led to a 5.52% decline in its stock. This shows that beyond earnings figures, how much money will need to be invested in the future has become a key variable in tech stock valuations.

The Middle East situation is also a factor holding back further gains in the stock market. U.S. online media outlet Axios reported that U.S. President Donald Trump said the United States would maintain a maritime blockade against Iran until concerns about Iran’s nuclear program are resolved. In addition, there are reports that U.S. Central Command is preparing for a short-term airstrike on Iran. In response, Major General Majid Moussavi, commander of the Aerospace Force of the Iranian Revolutionary Guard Corps, warned that if the United States carries out even a limited attack, U.S. military bases in the Middle East would be severely hit. Iran’s Supreme Leader Mojtaba Khamenei also mentioned, on the X platform, new management and legal rules for the Strait of Hormuz. The Strait of Hormuz is a key corridor for transporting crude oil from the Middle East. Escalating tensions in the region could cause energy prices and global financial markets to move in tandem.

The U.S. economic indicators released that day sent signals that both economic activity and prices were not heading toward extremes. The preliminary estimate for U.S. Q1 gross domestic product (GDP) showed an annualized quarter-over-quarter growth rate of 2.0%, below the market expectation of 2.3%. Meanwhile, the core Personal Consumption Expenditures (PCE) price index for March rose 0.3% month over month, in line with expectations. Although the pace of economic growth slowed, inflation remained within the expected range. The market believes the Federal Reserve’s policy path will not face major shocks in the near term. In terms of sectors, aside from technology stocks and non-essential consumer goods, most sectors performed strongly. Among individual stocks, Eli Lilly rose 9.15% after raising its annual revenue forecast; Royal Caribbean rose 10.12% due to strong adjusted earnings per share in the first quarter; and Caterpillar rose 9.25% as its performance improved.

European stock markets also showed relatively stable performance. At the same time, the STOXX 50 index rose 0.77% to 5,861.30 points; France’s CAC 40 index rose 0.10%; Germany’s DAX index rose 0.85%; and the United Kingdom’s FTSE 100 index rose 1.54%. International oil prices trended downward. The price of West Texas Intermediate (WTI) crude oil for June 2026 delivery was $105.21 per barrel, down 1.56% from the previous trading day. However, the market believes that even if oil prices adjust in the short term, concerns about supply disruption may resurface if U.S.-Iran confrontation escalates further. Warren Patterson, head of economic strategy at ING, analyzed that the oil market is shifting from excessive optimism to worries about actual supply interruptions. Under this trend, based on the quality of corporate earnings—especially the burden of capital expenditures and the direction of how Middle East risks evolve—the divergence among sectors in New York’s stock market could become even more pronounced.