US stocks rise driven by technology sector and easing trade tensions

On Thursday, US stocks finished the trading session with an increase. All three major US stock indices rose sharply, largely thanks to the technology companies of the “magnificent seven” group. Their growth was aided by favorable quarterly results of software developer ServiceNow.

Meanwhile, the situation with the US-China trade standoff is showing some signs of stabilization. According to Paul Nolte, market strategist at Murphy & Sylvest, easing tensions between China and the US could lead to an active rise in technology sector stocks.

As Reuters emphasizes, trade tensions have had a strong impact on business and consumer sentiment. Procter & Gamble, PepsiCo and American Airlines have cut or withdrawn profit forecasts due to increased uncertainty. Meanwhile, shares of Procter & Gamble fell 3.7%, while PepsiCo declined 4.9%.

However, the agency points out that not all indicators show negative trends. Out of 157 S&P 500 companies that reported first-quarter results, 74% showed better-than-expected performance. According to LSEG, analysts now expect total S&P 500 earnings growth of up to 8.9% year-over-year. The April 1 forecast suggested a figure of 8.0%.