US Stocks Spike as Investors Analyze Big Tech Earnings and Await Apple’s Results
US stocks surged on Thursday afternoon as investors processed the latest earnings reports from major tech companies and awaited Apple’s performance for further insights into the prospects of Big Tech.
The S&P 500 and Dow Jones Industrial Average both saw gains of approximately 0.5% and 0.4%, respectively, while the tech-heavy Nasdaq Composite also experienced a rise of nearly 0.3%.
Just before the closing bell, President Donald Trump hinted at imposing tariffs of 25% on Mexico and Canada, leading to a spike in the US dollar index. The index reversed earlier losses to close near flat.
Following the Federal Reserve’s decision to maintain interest rates as expected, investors shifted their focus to digesting earnings reports. The initial wave of results from the “Magnificent Seven” companies that have been driving broader stock market gains was of particular interest.
Tesla’s stock saw an increase despite missing earnings expectations, with investors expressing confidence in the company’s commitment to return to growth by 2025. Meanwhile, Meta reported better-than-expected quarterly earnings, leading to a boost in its shares. However, Microsoft shares plummeted by 6% after its cloud revenue fell short.
Faith in Big Tech was tested following DeepSeek’s more cost-effective AI model, prompting a reevaluation of the rationale behind massive AI investments.
The Bureau of Economic Analysis released its advance estimate of fourth-quarter gross domestic product (GDP), indicating that the US economy grew at an annualized rate of 2.3%, below economists’ expectations of 2.6%.
Additionally, American Airlines CEO Robert Isom expressed condolences following a collision between an American passenger jet and a US army helicopter on Wednesday night.
Apple reported its fiscal first-quarter earnings after the bell on Thursday, surpassing expectations on top and bottom lines but falling short on iPhone revenue. As a result, shares were down approximately 1% following the earnings report.
Overall, the day was marked by various developments in the tech and economic sectors, with investors closely monitoring the performance and prospects of leading companies in the market.