Markets Soar Amidst U.S.-China Trade Talks, But Tech Giants Stumble

Today, the major stock indices skyrocketed, fueled by ongoing U.S. trade negotiations with China. Yet, amidst this surge, Google's plummet dragged the Nasdaq down with it.

The market was buzzing with optimism, but the tech sector? It was a rollercoaster. On May 7th, the Dow Jones soared by a whopping 377 points, a 0.92% jump, while the S&P 500 climbed 0.42%. The Nasdaq, however, barely stayed above the opening line, inching up just 0.07% after a heart-stopping 200-point nosedive earlier in the day.

The tech-heavy index tanked from a peak of 17,793 to a low of 17,600 in less than an hour, thanks to the pressure on big tech stocks. Google took a massive hit, crashing 8.11% after rumors spread that Apple is gearing up to shift its Safari browser towards AI-powered engines.

Google's bread and butter is its search business, and investors are sweating bullets over Apple's move potentially slashing that revenue stream. Apple's stock also took a hit, dropping 1.46%. And let's not forget, Google shells out a cool $20 billion a year to stay the default search engine on Apple devices.

Renewed Trade Talks Boost Markets

Despite the tech sector's wild ride, the markets were on fire thanks to the buzz about renewed U.S.-China trade talks. Word on the street is that U.S. officials are sitting down with Chinese reps to hash out the tariff mess.

This week, they're tackling the insane 145% U.S. tariff rate on all Chinese goods and the retaliatory 125% Chinese tariffs. Sure, it's promising, but don't hold your breath—these talks could drag on for months.

Meanwhile, these tariffs are wreaking havoc on both economies. Chinese factories took a nosedive in April, and the U.S. Federal Reserve is bracing for a slowdown in growth.

Amidst all this trade chaos, the crypto markets are holding strong. Bitcoin (BTC) is up 1.88% to $96,586, and the overall crypto market cap surged 1.54%, inching ever closer to hitting that $3 trillion mark again.