As the day unfolded on Thursday, the stock market saw a surge in various companies’ earnings and developments, with a particular interest in the tech sector. Here is a breakdown of the key events of the day:
-
Market Movement:
- The S&P 500 gained 0.5%, while the Dow Jones Industrial Average rose nearly 0.4%. The tech-heavy Nasdaq Composite was up almost 0.3%, indicating positive momentum in the market.
- President Donald Trump hinted at impending 25% tariffs on Mexico and Canada, causing a spike in the US dollar index.
- Despite the Federal Reserve holding interest rates steady as expected, investors turned their attention to digesting earnings reports.
-
Tech Sector Earnings:
- Notable companies like Tesla and Meta came out with mixed results. Tesla’s stock ticked higher despite an earnings miss, as investors showed confidence in its growth prospects for 2025. On the other hand, Meta’s quarterly earnings beat estimates, boosting its share value. Microsoft, however, saw a decline in its stock by 6% due to cloud revenue falling short.
- DeepSeek’s AI model tested faith in Big Tech, challenging assumptions about the payoff from massive AI investments.
-
Upcoming Earnings:
- Apple was scheduled to report earnings after the bell, with investors keenly observing its quarterly update for insights into its iPhone sales performance amidst recent downgrades.
- Chipmaker Intel was also expected to present its results.
-
GDP Figures:
- The Bureau of Economic Analysis released an advance estimate of fourth-quarter GDP growth, showing a rate of 2.3%, below economists’ expectations.
- American Airlines CEO expressed condolences following a tragic collision incident involving one of their jets and a US army helicopter.
- Key Sector Performances:
- UPS’s decision to scale back Amazon deliveries led to a 15% decline in its stock, impacting its revenue outlook.
- Comcast faced challenges with broadband customer losses and stagnant growth in its Peacock streaming service subscribers.
- Bitcoin saw a 3% increase, hovering near $106,000, driven partly by Fed Reserve Chair Jerome Powell’s statements related to crypto and banks.
In conclusion, the day witnessed a mixed bag of earnings and developments, with the tech sector dominating much of the market’s focus. Investors remained vigilant about the future outlook for various companies amidst economic uncertainties and evolving market conditions.
