The US stock market ended on a positive note on Thursday, driven by investor reactions to major tech earnings reports.
Stock Market Performance
At the closing bell, the Dow Jones Industrial Average gained 0.38%, reaching 44,882.13, while the S&P 500 advanced 0.53% to 6,071.17. Meanwhile, the Nasdaq Composite inched up 0.25% to settle at 19,681.75. The Dow surged 168.61 points, rebounding from losses incurred in the previous session following the Federal Reserve’s decision to keep interest rates unchanged after a two-day policy meeting.
Tech Earnings Impact Market Movements
In the corporate sector, Meta Platforms (Facebook’s parent company) saw its stock climb as its Q4 earnings surpassed expectations on both revenue and profit. Conversely, Microsoft shares dipped after its Azure cloud computing revenue slightly missed analyst estimates. Tesla’s stock surged, despite its Q4 earnings falling short of Wall Street forecasts.
Elsewhere, Caterpillar stock declined following a Q4 revenue miss, while Comcast shares fell due to a decrease in broadband and cable TV subscribers.
Economic Data and Market Influences
US GDP Growth Slows: The US economy expanded at a 2.3% annualized rate in Q4, falling short of the expected 2.6% growth and down from 3.1% in Q3. Growth was primarily driven by consumer and government spending, while declines in investment acted as a drag on expansion.
US Jobless Claims Decline: Initial jobless claims fell by 16,000 to 207,000 in the week ending January 25, well below expectations of 220,000. Continuing claims also declined by 42,000 to 1.85 million, signaling a resilient labor market.
Pending Home Sales Drop: US pending home sales fell by 5.5% month-on-month in December, marking the first decline since July. Year-over-year, sales decreased by 5%, according to the National Association of Realtors.
Apple Earnings and Market Reactions
Following market close, Apple reported a 4% rise in overall Q4 revenue to $124.3 billion, driving profits 7% higher year-over-year to $36.3 billion. However, the company noted a decline in iPhone sales, as its AI-driven features failed to generate significant excitement among consumers.
Bond Market Update
The yield on the benchmark 10-year Treasury note declined by two basis points to 4.519%, offering support to equity markets.
With earnings season in full swing and key economic indicators shaping market sentiment, investors remain focused on tech sector performance, Federal Reserve policies, and economic growth prospects.
