US Stocks Surge as Investors Analyze Megacap Tech Earnings

On Thursday afternoon, US stocks gained momentum as investors digested earnings reports from major technology companies and awaited Apple's results for further insights into the prospects of Big Tech. The S&P 500 (^GSPC) advanced 0.5%, while the Dow Jones Industrial Average (^DJI) rose nearly 0.4%. The tech-heavy Nasdaq Composite (^IXIC) climbed 0.3%.

Tariffs Threat Casts a Shadow

Shortly before the closing bell, President Donald Trump once again hinted at imposing 25% tariffs on Mexico and Canada. The US dollar (DX=F) index spiked on the news, reversing earlier losses and closing near flat.

Earnings Digested Amidst AI Concerns

Following the Federal Reserve's decision to maintain interest rates, investors have turned their attention to parsing earnings reports, particularly the first wave of results from the "Magnificent Seven" companies that have driven broader stock market gains.

Tesla (TSLA) stock edged higher despite missing earnings estimates, as investors remained optimistic about its vow to resume growth in 2025. Meanwhile, Meta's (META) quarterly earnings beat helped buoy its shares, but Microsoft stock plummeted by 6% after its cloud revenue fell short.

The focus shifted to the rationale behind Big Tech's massive AI investments after DeepSeek's cheaper AI model raised questions about the potential return on investment.

GDP Growth Lags Expectations

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

Airline CEO Expresses Condolences

American Airlines (AAL) CEO Robert Isom expressed his heartfelt sympathies after the tragic collision between an American passenger jet and a US army helicopter on Wednesday night. Isom stated, "We're devastated for the families and loved ones of the passengers, crew members, and those on the military aircraft."

Apple Earnings Fall Short

After the closing bell on Thursday, Apple (AAPL) reported its fiscal first quarter earnings. The company exceeded expectations on the top and bottom lines but disappointed on iPhone revenue. Following the report, shares dipped approximately 1%.

Weekly Updates

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