Market Overview: U.S. Stocks Gain Momentum Despite Mixed Earnings
U.S. stocks rebounded on Thursday afternoon as investors digested earnings from tech giants and anticipated Apple's results. The S&P 500 (^GSPC) gained 0.7%, while the Dow Jones Industrial Average (^DJI) rose over 0.6%. The tech-heavy Nasdaq Composite (^IXIC) climbed 0.5%.
"Magnificent Seven" Earnings Analyzed
With the Federal Reserve leaving interest rates unchanged, investors turned their attention to corporate earnings. The first wave of results from the "Magnificent Seven" companies, which have driven broader stock market gains, has been closely scrutinized.
Tesla's (TSLA) stock ticked higher despite missing earnings, as investors placed trust in the company's commitment to return to growth in 2025. Meta's (META) earnings beat helped lift its shares, while Microsoft's stock slumped 6% after its cloud revenue fell short.
Artificial Intelligence Focus
The faith in Big Tech was tested after DeepSeek's cheaper AI model rattled assumptions about the likelihood of a payoff. The focus shifted to the rationale for their massive AI investments.
Apple (AAPL), which has faced multiple downgrades, is scheduled to report earnings after the bell. Investors will examine its quarterly update for signs of improved iPhone sales. Intel (INTC) is also expected to release results.
Economic Data
The Bureau of Economic Analysis's preliminary estimate of fourth-quarter gross domestic product (GDP) showed a 2.3% annualized growth rate, below economists' expectations of 2.6%.
Airline Industry News
American Airlines (AAL) CEO Robert Isom expressed condolences following the collision between an American passenger jet and a U.S. 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.
Upcoming Earnings Reports
Apple (AAPL)
Intel (INTC)
Blackstone (BX)
Caterpillar (CAT)
Comcast (CMCSA)
Dow (DOW)
Deckers Outdoors (DECK)
Mastercard (MA)
Mobileye (MBLY)
Southwest Airlines (LUV)
United States Steel (X)
Visa (V)