U.S. stocks showed a steady upward trend on Thursday, approaching a record high. The S&P 500 increased by 0.3% during afternoon trading, following its recent performance that brought it close to its all-time high set just a month ago.
Market Performance Overview
The Dow Jones Industrial Average also experienced a notable gain, climbing 349 points or 0.8%. In contrast, the Nasdaq composite saw a slight decline of 0.1%. The trading day was relatively calm, with modest fluctuations in Treasury yields, which have been volatile recently due to inflation concerns and the significant debt of the U.S. government.
The yield on the 10-year Treasury note rose to 4.65%, up from 4.61% late Wednesday, although it remains below earlier highs recorded this month. Meanwhile, the two-year Treasury yield, more sensitive to Federal Reserve policy expectations, eased slightly to 4.29%. This stability in yields followed a report indicating a slight increase in unemployment benefit applications, which, while higher than economists expected, remained manageable.
Corporate Earnings Impact
Corporate earnings reports significantly influenced market dynamics, with several key players showing notable performances. GE Aerospace surged by 6.8% after surpassing profit expectations for the latest quarter, driven by a remarkable 50% increase in orders for its airplane engines and services, totaling $12.9 billion.
Netflix also gained traction, rising 2.2% after a substantial 9.7% jump the previous day, following a better-than-expected profit report that has renewed investor confidence. In contrast, American Airlines faced a challenging day, with shares dropping 7.9% despite reporting stronger-than-expected profit and revenue figures.
- American Airlines’ forecast for the first quarter of 2025 indicated a potential loss greater than analysts had anticipated, contributing to investor unease.
- Additionally, Electronic Arts saw a significant decline of 16.5% after warning of a revenue slowdown linked to its popular soccer game, EA Sports FC25.
- The company also reported lower-than-expected engagement with its Dragon Age title.
International Market Movements
Internationally, stock market movements remained subdued, even following China’s latest efforts to stimulate its economy. The Hang Seng index in Hong Kong briefly rallied after government directives encouraged pensions and mutual funds to increase investments in domestic stocks, but ultimately closed down 0.4%.
In Japan, the Nikkei 225 index gained 0.8%, despite a notable drop in shares of Fuji Media Holdings. This decline was due to backlash following the retirement of a prominent TV host amid sexual assault allegations that have sparked widespread scrutiny in Japan’s entertainment sector.
Cryptocurrency Market Trends
In the cryptocurrency market, optimism surrounding potential regulatory friendliness from the U.S. government has driven prices upward. Bitcoin, for instance, hovered just below $106,000, having recently set a record above $109,000.
This surge reflects growing investor interest and confidence in the digital asset space, as market participants anticipate a more favorable environment for cryptocurrencies under the current administration. As the U.S. stock market navigates through a landscape marked by corporate earnings, economic indicators, and global market influences, investors remain vigilant.
- They are weighing the implications of these developments on future market performance.
- The interplay between interest rates, corporate profitability, and international economic policies will continue to shape the financial landscape in the coming weeks.
📎 Related coverage from: apnews.com
