US Stocks Gain as Investors Digest Tech Earnings and Await Apple Results

US stocks surged on Thursday afternoon as investors assessed earnings reports from major tech companies and anticipated Apple's financial release for further insights into the industry's performance. The S&P 500 (^GSPC) climbed 0.5%, while the Dow Jones Industrial Average (^DJI) gained nearly 0.4%. The Nasdaq Composite (^IXIC), heavily influenced by tech shares, rose approximately 0.3%.

Ahead of the closing bell, President Donald Trump again teased the possibility of imposing 25% tariffs on Mexico and Canada, causing a spike in the US dollar index. However, the index later reversed losses to settle near flat.

With the Federal Reserve maintaining interest rates as expected, investors have shifted their focus to earnings reports, particularly those from the "Magnificent Seven" companies that have driven broader market growth.

Tesla (TSLA) shares rose despite missing earnings expectations as investors expressed trust in the company's commitment to resume growth in 2025. Meanwhile, Meta's (META) quarterly earnings exceeded analysts' estimates, boosting its stock price. However, Microsoft shares fell by 6% after the company's cloud revenue fell short of expectations.

The emphasis on Big Tech's AI investments was questioned after DeepSeek's cost-effective AI model challenged assumptions about the likelihood of returns, highlighting the rationale behind their significant AI investments.

The Bureau of Economic Analysis's preliminary estimate for fourth-quarter gross domestic product (GDP) revealed that the US economy grew at an annualized rate of 2.3%, below economists' expectations of 2.6%.

American Airlines (AAL) CEO Robert Isom expressed condolences following the collision between an American passenger jet and a US army helicopter on Wednesday night. "We're absolutely heartbroken for the family and loved ones of the passengers and crew members and also for those that were on the military aircraft,” Isom said.

After the bell, Apple (AAPL) reported fiscal first-quarter earnings, beating expectations on the top and bottom lines but falling short on iPhone revenue. Shares fell by about 1% following the report.