A rally by the world’s largest technology companies helped US stocks register their best week so far this year.
With the latest inflation data coming roughly in line with estimates, this also lent support to Wall Street.
The S&P 500 and Nasdaq registered their biggest weekly percentage gains since early November 2023.
The S&P 500 gained 1.02 per cent to close around 5,100 on Friday, while the tech-heavy Nasdaq 100 climbed almost 2 per cent. The Dow Jones Industrial Average rose 0.4 per cent.
MSCI's gauge of stocks around the globe rose 0.9 per cent to 762.39 on tech sector optimism, following good results from Alphabet and Microsoft.
The yield on 10-year US Treasuries declined four basis points to 4.67 per cent.
Google’s parent company Alphabet on Thursday announced it would issue its first dividend, at 20 cents a share, and authorised a stock repurchase programme worth $70 billion.
The world's largest provider of search and video advertisements reported a 15 per cent increase in its revenue for January to March, to more than $80.5 billion, passing analysts’ estimate of $78.5 billion.
Microsoft reported stronger profit and revenue than expected, driven by an artificial intelligence push and increased adoption of cloud solutions globally.
The company’s net income jumped 20 per cent on a yearly basis to $21.9 billion. Revenue during the January-March period surged 17 per cent to $61.9 billion, passing analysts’ estimate of $60.8 billion.
They helped offset a 9.2 per cent drop for Intel. It reported stronger profit for the latest quarter than expected, but its revenue fell short of analysts’ estimates.
“Microsoft and Google’s Alphabet both jumped in the after-hours trading after announcing sufficiently strong results that met and surpassed expectations,” Ipek Ozkardeskya, senior analyst at Swissquote Bank, said.
“Microsoft gained more than 4 per cent on better-than-expected sales and profit, thanks to robust corporate demand for its cloud and AI offerings, while Google jumped 11 per cent, boosted by its own cloud business.”
The latest results from large technology companies have reinforced Big Tech’s foothold, helping offset worries about the macroeconomic backdrop, Bloomberg reported quoting Solita Marcelli at UBS Global Wealth Management.
“With tech fundamentals staying robust, in particular from Big Tech in the first quarter, we continue to highlight the recent correction has provided interesting entry points for tech and AI-related stocks,” Ms Marcelli said.
US data also boosted sentiment, with the personal consumption expenditures (PCE) price index up 0.3 per cent in March, in line with estimates by economists.
In the 12 months through March, PCE inflation advanced 2.7 per cent against expectations of 2.6 per cent.
Stocks have broadly been under pressure this month after hopes faded for multiple interest rate cuts this year by the US Federal Reserve.
Reports that show inflation remaining higher than forecast have driven traders to expect only a single cut this year, down from forecasts for six or more at the start of 2024.
The inflation readings will likely keep the Fed on hold at its next policy meeting on Wednesday.
Its main interest rate has been sitting at the highest level since 2001, as officials aim to undercut inflation by putting downward pressure on the economy and financial markets.
“Inflation, which slowed last year thanks to fading post-pandemic boost, is now fuelled by still-robust demand. And that’s something the Fed could address by keeping its policy tight,” Ms Ozkardeskya said.
“Swap traders now price in 35 basis points cut for the entire 2024, down from six rate cuts priced in at the start of the year.”
If interest rates stay high, companies will need to produce stronger profits for their stock prices to rise.
About three in four companies have been exceeding analysts' forecasts for profit, according to FactSet.
THE SIXTH SENSE
Starring: Bruce Willis, Toni Collette, Hayley Joel Osment
Director: M. Night Shyamalan
Rating: 5/5
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
The biog
Family: He is the youngest of five brothers, of whom two are dentists.
Celebrities he worked on: Fabio Canavaro, Lojain Omran, RedOne, Saber Al Rabai.
Where he works: Liberty Dental Clinic
Company%20profile
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MATCH INFO
Everton v Tottenham, Sunday, 8.30pm (UAE)
Match is live on BeIN Sports
RESULT
Arsenal 1 Chelsea 2
Arsenal: Aubameyang (13')
Chelsea: Jorginho (83'), Abraham (87')
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
How to help
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200
Friday's schedule in Madrid
Men's quarter-finals
Novak Djokivic (1) v Marin Cilic (9) from 2pm UAE time
Roger Federer (4) v Dominic Thiem (5) from 7pm
Stefanos Tsitsipas (8) v Alexander Zverev (3) from 9.30pm
Stan Wawrinka v Rafael Nadal (2) from 11.30pm
Women's semi-finals
Belinda Bencic v Simona Halep (3) from 4.30pm
Sloane Stephens (8) v Kiki Bertens (7) from 10pm
TOURNAMENT INFO
Fixtures
Sunday January 5 - Oman v UAE
Monday January 6 - UAE v Namibia
Wednesday January 8 - Oman v Namibia
Thursday January 9 - Oman v UAE
Saturday January 11 - UAE v Namibia
Sunday January 12 – Oman v Namibia
UAE squad
Ahmed Raza (captain), Rohan Mustafa, Mohammed Usman, CP Rizwan, Waheed Ahmed, Zawar Farid, Darius D’Silva, Karthik Meiyappan, Jonathan Figy, Vriitya Aravind, Zahoor Khan, Junaid Siddique, Basil Hameed, Chirag Suri
WORLD'S%2010%20HIGHEST%20MOUNTAINS
%3Cp%3E1.%09Everest%0D%3Cbr%3E2.%09K2%0D%3Cbr%3E3.%09Kangchenjunga%0D%3Cbr%3E4.%09Lhotse%0D%3Cbr%3E5.%09Makalu%0D%3Cbr%3E6.%09Cho%20Oyu%0D%3Cbr%3E7.%09Dhaulagiri%0D%3Cbr%3E8.%09Manaslu%0D%3Cbr%3E9.%09Nanga%20Parbat%0D%3Cbr%3E10.%09Annapurna%0D%3C%2Fp%3E%0A
Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
UK’s AI plan
- AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
- £10bn AI growth zone in South Wales to create 5,000 jobs
- £100m of government support for startups building AI hardware products
- £250m to train new AI models
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Company%20Profile
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Neo%20Mobility%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20February%202023%3Cbr%3E%3Cstrong%3ECo-founders%3A%3C%2Fstrong%3E%20Abhishek%20Shah%20and%20Anish%20Garg%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Logistics%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%2410%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Delta%20Corp%2C%20Pyse%20Sustainability%20Fund%2C%20angel%20investors%3C%2Fp%3E%0A
THE BIO
Born: Mukalla, Yemen, 1979
Education: UAE University, Al Ain
Family: Married with two daughters: Asayel, 7, and Sara, 6
Favourite piece of music: Horse Dance by Naseer Shamma
Favourite book: Science and geology
Favourite place to travel to: Washington DC
Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.
THE DETAILS
Director: Milan Jhaveri
Producer: Emmay Entertainment and T-Series
Cast: John Abraham, Manoj Bajpayee
Rating: 2/5
