US Stocks Rise on Big Tech Earnings, GDP Report Shows Slower Growth
US stocks rose on Thursday, with the Nasdaq and S&P 500 aiming for a comeback. Investors analyzed earnings reports from megacap tech companies and awaited Apple's (AAPL) results for insights on Big Tech's prospects.
The tech-heavy Nasdaq Composite (^IXIC) gained 0.4%, while the S&P 500 (^GSPC) advanced 0.4%. The Dow Jones Industrial Average (^DJI) edged up slightly after losses on Wall Street.
Following the Federal Reserve's decision to maintain interest rates, investors turned their attention to earnings reports, particularly the "Magnificent Seven" companies that have driven stock market gains. Markets remained optimistic about Big Tech after positive results from Microsoft (MSFT), Meta (META), and Tesla (TSLA). Investors watched these companies' rationale for substantial AI investments following news of a cheaper AI model from DeepSeek.
Despite missing earnings estimates, Tesla shares rose as investors trusted its promise to return to growth in 2025. Meta's quarterly results boosted its shares in pre-market trading, while Microsoft stock fell due to lower cloud revenue. Apple (AAPL), whose stock has faced downgrades, is scheduled to report its quarterly results later.
The Bureau of Economic Analysis's preliminary report on fourth-quarter gross domestic product (GDP) indicated that the US economy grew at an annualized pace of 2.3%, below economists' expectations of 2.6%. Meanwhile, a fatal collision between an American Airlines (AAL) passenger jet and a US army helicopter made headlines. The crash occurred as the plane approached Reagan Washington National Airport on Wednesday night.
Other Notable News
* Chipmaker Intel (INTC), Comcast (CMCSA), Mastercard (MA), and Visa (V) are reporting earnings.
* The CEO of American Airlines expressed condolences after the fatal DC crash, which left no survivors.
* The US economy grew at a slower pace in the fourth quarter, according to preliminary data.
* Goldman Sachs anticipates interest rate cuts in 2025 despite the Fed's decision to maintain rates.
* Nvidia (NVDA) bulls continue to buy the dip despite its recent decline.
* Meta's investment thesis is focused on applying AI to advertising to increase revenue.
* Microsoft's AI services sales grew 157%, but Azure growth was disappointing, leading to a pre-market sell-off.