CNBC Daily Open : Tech takes centerstage

The Shift in Market Dynamics: Tech Gains and Uncertainty Ahead
U.S. Stock Market Rallies Amid Tech Strength
The market’s leading tech stocks don’t hold the same sway they once did, and that may change the ingredients needed for a Wall Street rally. While tech appears to be at the forefront of investors’ mind for now, tariffs and trade tensions still lurk in the shadows, with Intel CFO David Zinsner warning that tariffs and retaliation from other countries has increased the likelihood of a recession. The optimism that both the U.S. and China were going to de-escalate the trade war has been watered down by China saying there were no ongoing trade talks with the U.S. U.S. President Donald Trump reportedly refuted China’s claims, saying that trade talks were underway, but declined to reveal any details on the nature of the talks, adding to the uncertainty around trade. Money Report
Alphabet shares climbed after better than expected results, with the company’s overall revenue growing 12% year over year, higher than the 10% Wall Street expected. Intel also posted results that beat analysts’ estimates, but also issued disappointing guidance, warning of tariff impact on second-quarter revenue. Retail shortages from trade war will hit U.S. consumers in stages, with warnings from CEOs of America’s top retail stores that a prolonged trade war would lead to shortages. The market’s leading tech stocks are gaining power, with the S&P 500 ending up 2.03%, and the Nasdaq Composite adding 2.74%. Tech gains power markets, with the Dow Jones Industrial Average lagging behind but still adding 1.23%. Major U.S. tech names reported their first-quarter results, offering markets something more to chew on besides all the tariff-related news. Highlights
• Alphabet’s search and advertising units are still showing strong growth despite AI competition heating up. • Intel warned that tariffs and retaliation from other countries has increased the likelihood of a recession. • U.S. President Donald Trump reportedly refuted China’s claims of no ongoing trade talks with the U.S. • Meta laid off employees in its Reality Labs division, which develops virtual reality, augmented reality, and related wearable devices. Definitions
• Megacap tech names: Large-cap technology companies that have significant market capitalization. • Roundhill Magnificent 7 ETF (MAGS): An ETF that holds shares of the Mag 7, a basket of seven large-cap tech stocks. • Virtual reality (VR) and augmented reality (AR): Technologies that use virtual and augmented overlays to create immersive experiences.