Dow gains while investors react to tariffs, Fed policy, and upcoming reports from Apple and Amazon
On Thursday, the Dow Jones Industrial Average gained 168.61 points, or 0.38 percent, closing at 44,882.13, CNBC reports.
At one point, it had risen nearly 300 points. The S&P 500 advanced 0.53 percent to 6,071.17, while the Nasdaq Composite added 0.25 percent to finish at 19,681.75.
Markets pared back gains late in the session after US President Donald Trump announced plans to impose 25 percent tariffs on goods imported from Canada and Mexico.
Meanwhile, Wall Street processed quarterly earnings from major technology companies. Meta Platforms and Tesla saw their shares rise 1.6 percent and 2.9 percent, respectively.
Tesla’s stock climbed despite missing earnings and revenue estimates. In contrast, Microsoft’s stock dropped 6.2 percent after the company provided a weaker-than-expected revenue forecast, despite beating top- and bottom-line expectations.
“We had three major megacap technology companies report last night, and for the most part, all of them sort of came in and out of their earnings unscathed,” said Art Hogan, chief market strategist at B. Riley Wealth Management.
He added that, overall, a significant number of companies have exceeded expectations on both the top and bottom lines.
Caution persisted among investors after fourth-quarter US GDP growth came in at 2.3 percent, failing to meet expectations.
Wall Street also reacted to the Federal Reserve’s decision to maintain interest rates, keeping its borrowing rate between 4.25 percent and 4.5 percent. Policymakers noted that inflation remains “somewhat elevated.”
Hogan stated that investors can now move past concerns about the Fed not cutting rates. “We kind of get the chance to put the Fed not cutting rates in the rearview mirror,” he said, adding that this is likely for the right reasons, as economic data supports keeping rates unchanged for now.
He added that this decision allows policymakers to evaluate the economic impact of policies under the new US administration.
Earnings reports from other major tech firms are expected soon.
Apple will release its quarterly results on Thursday, followed by Amazon next week. Investors are also anticipating the December personal consumption expenditures price index report in US, scheduled for release on Friday.
Despite Thursday’s gains, the S&P 500 and the Nasdaq Composite remain on track to end the week lower, recovering only some of Monday’s losses. The Dow Jones Industrial Average is the only major index still positioned for a weekly gain.
