Futures Rise as Nvidia and Energy Lead While Apple and Block Tumble

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•  02 May 2025
 

U.S. stock futures are up about 0.5% this morning, extending Wall Street’s recent winning streak to an impressive eight straight sessions. The rally brings major indexes like the Nasdaq, Dow, and S&P 500 back to levels not seen since the early days of the U.S.-China trade war and former President Trump's global tariff announcements. Investors are reacting positively to fresh optimism around trade talks, as China’s Commerce Ministry is reportedly considering a U.S. proposal favorably. That sense of easing geopolitical tensions is outweighing mixed earnings reports from major tech players like Apple and Amazon.

Despite beating earnings expectations, Apple $AAPL is down 3.5% in pre-market trading. The company reported adjusted earnings of $1.65 per share on $95.36 billion in revenue—both better than analysts had forecast. iPhone sales hit $46.84 billion, also beating expectations. However, the disappointment came from weaker-than-expected service revenue and Greater China sales, which fell short of projections at $16 billion compared to a $17 billion estimate. CEO Tim Cook revealed a shift in production strategy, saying most iPhones bound for the U.S. in the next quarter will come from India and Vietnam. He also warned that new tariffs could tack on $900 million in costs for the quarter. Notably, Warren Buffett’s Berkshire Hathaway recently sold off two-thirds of its Apple stake, possibly anticipating the pullback.

Amazon $AMZN is down 0.8% following its own mixed earnings report. While Q1 profits and overall revenue exceeded expectations, its cloud segment AWS brought in $29.3 billion—just shy of the $29.4 billion target. The company’s Q2 revenue guidance of $159 to $164 billion is in line with analyst forecasts, but its operating income forecast of $13 to $17.5 billion fell below the $17.65 billion estimate. CEO Andy Jassy noted that tariffs haven’t yet significantly impacted demand or pricing but cautioned that the situation could evolve.

Meanwhile, Nvidia $NVDA is gaining 1% in pre-market trading as investors remain bullish on AI. Tech giants continue to highlight artificial intelligence as their primary growth engine and are ramping up AI infrastructure investment—benefiting Nvidia’s dominance in AI chips.

Energy stocks are showing strength too. ExxonMobil is up 1% after posting stronger-than-expected results, including adjusted earnings of $1.76 per share and a 20% increase in oil output to 4.6 million barrels per day, thanks to its acquisition of Pioneer Natural Resources. On the other hand, Chevron slipped 2% as its revenue missed forecasts despite beating on earnings.

In biotech, Amgen rose 1.5% after crushing expectations with $4.90 EPS and $8.15 billion in revenue. Fourteen of its products delivered double-digit sales growth, signaling strong momentum.

Block Inc., the parent company of Square and Cash App, is collapsing 21% in early trade after big earnings miss and a disappointing forecast cut for 2025. The company blamed shifting consumer spending patterns for the sharp revision, spooking investors.

MicroStrategy, the largest public corporate holder of Bitcoin, is up 2.2% despite posting a steep $16.49 per-share loss, largely tied to a $5.9 billion markdown on its crypto assets.

Airbnb is down 5.1% after saying that while Q1 results were solid, Q2 bookings are expected to slow, particularly in the U.S., due to economic uncertainty.

Software company Atlassian is plunging 17% after lowering its guidance, despite posting better-than-expected results for the previous quarter.

The market is also eyeing Friday’s jobs report, which could heavily influence rate expectations. Analysts are projecting the creation of 133,000 jobs in April—down from 228,000 in March—with unemployment holding steady at 4.2%. A weaker report might actually cheer investors, as it could signal cooling consumer demand and support the case for interest rate cuts. However, strong numbers would reaffirm economic resilience and complicate the rate-cut outlook.