^{Source: Malay Mail}

Market Overview

On Thursday, U.S. stock markets experienced a notable upswing, primarily driven by impressive first-quarter earnings from major technology companies. The S&P 500 and Nasdaq Composite each advanced over 2%, while the Dow Jones Industrial Average reclaimed the 40,000 mark. This positive momentum in the tech sector provided a counterbalance to persistent concerns over escalating trade tensions between the U.S. and China.​

Alphabet's Stellar Q1 Performance

Alphabet Inc. (NASDAQ: GOOGL), the parent company of Google, reported a remarkable 46% year-over-year increase in net income, reaching $34.54 billion for Q1 2025. Total revenue rose by 12% to $90.2 billion, surpassing analyst expectations. Key contributors to this growth included:​‍

• Advertising Revenue: An 8% increase, totaling $66.9 billion.​
• Google Cloud: A 28% surge in revenue, amounting to $12.3 billion.​
• AI Initiatives: The launch of Gemini 2.5 and AI Overviews in Search, now serving 1.5 billion users monthly.​

In response to these strong results, Alphabet announced a $70 billion share buyback program and a 5% increase in its quarterly dividend to $0.21 per share. The company's stock rose over 4% in after-hours trading, reflecting investor confidence in its continued growth trajectory.​

Intel's Mixed Results Amid Trade Concerns

Intel Corporation (NASDAQ: INTC) reported Q1 2025 revenue of $12.7 billion, slightly above analyst projections. However, the company issued a cautious outlook for Q2, forecasting revenue between $11.2 billion and $12.4 billion and anticipating breakeven adjusted earnings per share. Intel's CFO, David Zinsner, attributed this conservative guidance to macroeconomic uncertainties and potential impacts from ongoing trade disputes.​

To navigate these challenges, Intel announced strategic initiatives aimed at enhancing operational efficiency, including organizational restructuring and workforce reductions exceeding 20%. Despite these measures, the company's stock declined over 5% in after-hours trading, reflecting investor apprehension.​

Trade Tensions: A Persistent Overhang

Trade relations between the U.S. and China remain strained, with conflicting statements adding to market uncertainty. While China has indicated a lack of ongoing trade discussions, U.S. President Donald Trump asserts that negotiations are underway, though details remain undisclosed. This ambiguity continues to weigh on investor sentiment.​

In a related development, South Korea is actively seeking to finalize a trade agreement with the U.S. by July to avert potential tariffs. Both nations have agreed to pursue a comprehensive package addressing tariff and non-tariff measures, economic security, investment cooperation, and currency policy. Working-level talks are scheduled to continue, aiming for a resolution before the current tariff pause concludes.​‍

Investor Outlook

The robust earnings from tech giants like Alphabet have provided a temporary respite for markets amidst geopolitical uncertainties. However, the looming threat of intensified trade conflicts and their potential economic repercussions necessitate cautious optimism. Investors are advised to monitor developments closely, as the interplay between corporate performance and international trade policies will likely dictate market trajectories in the coming months.​

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