US Stocks Gain Momentum on Earnings and Economic Data
US stocks advanced on Thursday afternoon as investors analyzed earnings from technology giants and awaited Apple's results for insights into the sector's prospects. The S&P 500 (^GSPC) climbed 0.5%, while the Dow Jones Industrial Average (^DJI) rose 0.4%. The Nasdaq Composite (^IXIC) gained 0.3%.
Earlier in the trading session, President Trump's threat of imposing 25% tariffs on Mexico and Canada sparked a spike in the US dollar (DX=F) index. However, investors shifted their focus to earnings reports, particularly the initial wave of results from the "Magnificent Seven" companies that have driven broader stock market gains.
Tesla's (TSLA) stock ticked higher despite missing earnings expectations as investors trusted its promise to return to growth in 2025. Meta's (META) quarterly earnings beat boosted its shares, while Microsoft's stock plummeted 6% after its cloud revenue fell short.
Meanwhile, the Bureau of Economic Analysis reported that the US economy expanded at an annualized rate of 2.3% in the fourth quarter, below economists' expectations. Despite the Federal Reserve maintaining interest rates, investors continue to parse earnings reports for clues about the economy.