A Pulse of the Market: Tech and More on April 24, 2025
Today's S&P 500 Movements Highlight: ServiceNow Stock Surges following Strong AI-Driven Earnings Report
Let's dive into the pulse of the market, where tech and a whole lot more took center stage on Thursday, April 24.
The S&P 500 surged a belligerent 2.0%, with tech stocks soldiering on and optimism over easing trade relationships fuelling a third straight day of gains. financial services firm ServiceNow flaunted impressive quarterly results, sending its shares soaring. Conversely, shares of financial technology firm Fiserv nosedived after a lackluster earnings report.
ServiceNow - A Tech Titan in the Making
ServiceNow shares (NOW) saw a 15.5% surge, making it the top performer in the S&P 500, following a stellar Q1 2025 performance. The cloud-based enterprise software firm topped sales and profit forecasts, and it eyed tariffs, trade negotiations, and government efficiency efforts as potential growth opportunities rather than hurdles.
Hasbro - Unyielding Despite Tariffs
Hasbro (HAS) rode the wave of success, reporting better-than-expected sales and profits for Q1 2025. The toy giant's shares skyrocketed 14.6%, all while maintaining its full-year guidance and extending its licensing deal with Disney (DIS). This means more of the Marvel and Star Wars action for you!
Microchip Technology - Gearing Up for Efficiency
Microchip Technology unveiled a new power module designed to enhance power management for data centers and industrial automation processes. The semiconductor manufacturer's high-efficiency, compact solution aims to minimize power loss, essentially keeping the lights on without battery life hiccups.
Fiserv - A Tough Day at the Office
On the flip side, shares of financial technology firm Fiserv (FI) plummeted 18.5%, making it the biggest loser in the S&P 500. A mediocre Q1 2025 earnings report, complete with disappointing revenue figures, dragged the stock down. However, Fiserv isn't throwing in the towel just yet, announcing an agreement to acquire Brazilian fintech firm Money Money to strengthen its Clover point-of-sale business.
LKQ - Missing the Mark
Auto parts provider LKQ also missed Q1 2025 sales estimates, causing its shares to plummet 11.6%. Despite maintaining its guidance, the company expressed concern over potential tariff impacts, quickly forming a dedicated task force to evaluate both challenges and opportunities related to the evolving global trade environment.
IBM - A Warning in the Wind
Despite posting impressive Q1 2025 sales and profits, tech titan International Business Machines (IBM) delivered a sobering take on the near future. Its CEO warned that customers could scale back spending as they navigate economic uncertainties and government policy transformations, causing IBM shares to sink 6.6% on Thursday.
Don't miss out on CFD trading opportunities with Pepperstone! Join now
Insights:
- The current trade policy under President Trump focuses on reciprocal tariffs and addressing foreign trade barriers, as outlined in the 2025 National Trade Estimate Report.
- Recent developments include delayed or implemented tariffs on select EU goods and threatened tariffs for alcohol and other products, as well as EU retaliatory measures on $8B of U.S. goods.
- President Trump has claimed 200 negotiated trade deals, but specifics remain undisclosed, causing uncertainty for businesses.
- Tech companies like ServiceNow and Hasbro may benefit from increased demand for automation tools and extended licensing deals, respectively.
- Sector-wide costs could rise if retaliatory tariffs target electronics/components, and regulatory uncertainty complicates long-term planning for multinational firms.
- The steepest surge amongst S&P 500 stocks on April 24 was seen in ServiceNow (NOW) tokens, a cloud-based enterprise software firm, following a high-performing Q1 2025.
- Despite tariffs and trade negotiations potentially serving as hurdles, ServiceNow eyed these situations as growth opportunities, highlighting the financial potential of tariffs and government efficiency efforts.
- In the realm of technology, Microchip Technology supplemented its offerings by unveiling a new power module designed for data center and industrial automation efficiency, promising to minimize power loss.
- The business sector faced contrasting fortunes on April 24, with ServiceNow soaring and Fiserv plummeting. While Fiserv shares nosedived due to a lackluster Q1 2025 earnings report, the company announced a strategic acquisition to strengthen its point-of-sale business.
- The tech titan International Business Machines (IBM) delivered a warning about potential spending reductions among customers, citing economic uncertainties and government policy transformations, which led to a 6.6% drop in IBM shares.
