By Caitlin McCabe and Ryan Dezember

Better-than-expected earnings from Microsoft and Meta Platforms boosted markets, reassuring investors of the relative resilience of the "Magnificent Seven" tech giants to tariff uncertainty.

Facebook parent Meta reported strong sales and said growth would remain steady, assuaging concerns tariffs would harm its digital-ads business-a chunk of which comes from Chinese companies. Microsoft, meanwhile, indicated that big corporate clients aren't slashing technology budgets just yet.

Meta and Microsoft shares both zoomed higher and other big tech stocks also mostly rallied. Amazon and Apple are due to post earnings this afternoon.

Meanwhile, General Motors offered a rather different update. GM said it expected the financial hit from tariffs could reach $5 billion, and slashed annual guidance. And McDonald's said revenue dropped last quarter, as American consumers "grappled with uncertainty" and reduced their fast-food trips.

Treasury Secretary Scott Bessent hinted the Federal Reserve ought to consider rate cuts by pointing to how yields on shorter-dated government bonds have moved steadily lower in recent weeks.

Investors welcomed tentative signs of thawing U.S.-China tensions. Beijing-backed social-media accounts said U.S. officials had reached out to discuss trade-something China sees "little downside in exploring," one account said.

In recent trading:

--Stock rallied, led by the Nasdaq Composite. The tech-heavy index is starting May higher than where it traded prior to Trump's "liberation day" tariff announcement April 2, which touched off a tumultuous month for U.S. stocks.

--Benchmark Treasury yields rose, having settled Wednesday at 4.17%.

--Gold prices fell. A strengthening dollar and easing trade tensions hit the precious metal, which closed 2.9% lower.

--The yen weakened, boosting the Nikkei 225. The Bank of Japan held interest rates and halved its growth forecast for the Japanese economy as tariffs begin to bite.

--Many global markets were on holiday: Markets in China, France, Germany, and Italy, among other countries, are closed for Labor Day.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

May 01, 2025 14:08 ET (18:08 GMT)

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