Wall Street Rises on Tech Momentum; ‘Mag. Seven’ Lead the Charge
With no major economic data scheduled for release heading into the weekend, investor focus is expected to remain on quarterly reports.
Quick overview
- U.S. stocks rallied on Thursday, with all major indexes closing higher, driven by strong performances from tech giants.
- The Dow Jones rose 1.23%, the S&P 500 gained 2.03%, and the Nasdaq surged 2.74%, led by the 'Magnificent Seven' companies.
- Tesla's stock increased by 3.5% following positive comments from CEO Elon Musk, despite recent weak earnings.
- Investors are closely monitoring quarterly earnings and U.S.-China trade developments, with mixed results from major companies.
U.S. stocks rallied on Thursday, with all three major Wall Street indexes closing higher as tech giants led the charge.
Investors reacted to a mix of quarterly earnings and closely monitored developments in the ongoing U.S.-China trade dialogue.
The Dow Jones Industrial Average rose 1.23% to 40,093.40 points, while the S&P 500 gained 2.03%, closing at 5,484.77. The tech-heavy Nasdaq Composite surged 2.74% to 17,166.04, buoyed by strong performances from the market’s largest tech names.
Tech Titans Lead Rally
The “Magnificent Seven” — the seven largest U.S. companies, many linked to the artificial intelligence boom — posted broad-based gains, spurred by better-than-expected earnings from ServiceNow, which soared 15.49%. The upbeat report helped power the Nasdaq ahead of its peers.
Among the group, Nvidia rose 3.62%, continuing its momentum as a key AI chipmaker. Microsoft added 3.45%, Amazon climbed 3.29%, Alphabet gained 2.53%, Meta Platforms increased 2.48%, and Apple advanced 1.84%.
Tesla, also considered part of this elite group, rallied 3.50%. Despite weak recent earnings, the stock was buoyed by comments from CEO Elon Musk, who announced he will reduce his government-related activities starting next month, potentially refocusing on the company.
Trade Tensions and Earnings in Focus
On the geopolitical front, President Donald Trump stated that there had been outreach to Beijing aimed at easing trade tensions. This came in response to China’s insistence that reports of negotiation progress should be disregarded.
Earnings reports added to the mixed picture. Consumer staples giants Procter & Gamble (-3.74%) and PepsiCo (-4.89%) slumped after cutting or withdrawing forecasts, citing persistent consumer uncertainty.
However, there were bright spots. Shares of Hasbro surged 14.58% after the toymaker beat expectations significantly, thanks in part to strength in its video game segment.
Economic Data and Outlook
On the economic front, weekly jobless claims in the U.S. rose in line with analyst forecasts. Meanwhile, durable goods orders in March came in stronger than expected, offering a positive signal for manufacturing.
With no major economic data scheduled for release heading into the weekend, investor focus is expected to remain on quarterly earnings reports and further developments in U.S.-China relations.
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