US Stocks Rise as Investors Review Tech Earnings
On Thursday afternoon, US stocks gained traction as investors pondered earnings from megacap tech firms and awaited Apple's (AAPL) results for insights into the future of Big Tech. The S&P 500 (^GSPC) gained 0.5% while the Dow Jones Industrial Average (^DJI) rose almost 0.4%. The tech-heavy Nasdaq Composite (^IXIC) was up by 0.3%.
As the closing bell approached, President Trump once again threatened to impose 25% tariffs on Mexico and Canada. The US dollar (DX=F) index surged in response to the news, erasing earlier losses and closing near flat levels.
After the Federal Reserve kept interest rates unchanged as expected, investors turned to earnings reports, particularly the initial wave of results from the "Magnificent Seven" companies responsible for broader stock market gains. Tesla's (TSLA) stock ticked higher despite missing earnings targets as investors expressed confidence in its pledge to return to growth in 2025. Meanwhile, Meta's (META) quarterly earnings beat fueled stock gains, but Microsoft (MSFT) shares slumped 6% after its cloud revenue fell short.
The Bureau of Economic Analysis's preliminary estimate of fourth-quarter gross domestic product (GDP) revealed that the US economy expanded at an annualized rate of 2.3%, below the 2.6% anticipated by Bloomberg-polled economists. American Airlines (AAL) CEO Robert Isom expressed condolences after a 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) released its fiscal first-quarter earnings, beating expectations for revenue and earnings per share but missing forecasts for iPhone sales. Following the report, shares declined by around 1%.