US stocks end higher as Magnificent 7 gain 3%

US stocks ended in green at the close of May's first trading session. This was driven by the strong performance from major tech companies as earnings season continued, amid signs of easing trade tensions between Washington and Beijing, despite ongoing uncertainty over the macroeconomic outlook and monetary policy.

The Dow Jones Industrial Average added 0.21% to 40,752 points, after touching 40,918 in early trade.

Similarly, the S&P 500 Index gained nearly 0.63% to 5,604 points.

The Nasdaq Composite jumped 1.52% to 17,710 points.

The Roundhill Magnificent Seven ETF, which offers equal weight exposure to the “Magnificent Seven” stocks, advanced 3% to $47.37.

Most European markets were closed on Labor Day, after the STOXX Europe 600 posted a monthly loss in April.

The FTSE 100 inched up 2 points to 8,496, demonstrating positive performance for the 14th straight session in the longest win streak since January 2017.

In Japan, the Nikkei 225 rose 1.1% to 36,452 points. TOPIX added 0.5% to 2,679 points. The Bank of Japan kept its benchmark interest rate unchanged for the second consecutive time.