U.S. stocks advanced on Thursday, led by a strong performance in technology shares, as better-than-expected earnings from Microsoft and Meta Platforms helped offset investor concerns about escalating U.S.-China trade tensions and slowing economic growth.
The Nasdaq Composite rose 1.52%, despite pulling back from session highs, fueled by a 7.6% jump in Microsoft and a 4.2% gain in Meta after both companies posted strong quarterly results. Analysts cited resilience in AI, cloud, and digital advertising segments as reasons for the rally.
The S&P 500 gained 0.63%, while the Dow Jones Industrial Average edged up 0.21%, logging its longest winning streak of the year.
Earnings Offset Macroeconomic Worries
The positive corporate results came amid a backdrop of mixed economic signals. Weekly jobless claims climbed to a two-month high, and U.S. GDP shrank in the first quarter, raising concerns about a cooling labor market and weaker growth outlook.
Still, investors found solace in strong earnings from Big Tech, which continues to serve as a buffer during volatile macroeconomic periods.
Focus Shifts to Apple and Amazon
Market participants now turn their attention to Apple and Amazon, both of which are scheduled to report after Thursday’s close. The two tech giants are facing direct impacts from the Trump administration’s tariff measures on Chinese goods.
- Amazon has stated it will absorb additional tariff costs, rather than passing them on to consumers.
- Apple is reportedly accelerating efforts to diversify iPhone production away from China, in response to growing geopolitical uncertainty.
Meanwhile, McDonald’s reported weaker U.S. sales and missed Q1 earnings estimates, citing sluggish consumer demand and tariff-related pressures. Its stock fell 2% on the news.
Geopolitical Developments and Trade Talks
On the diplomatic front, China has signaled a potential willingness to restart trade negotiations, although U.S. officials maintain that Beijing must make the first move. Sources within the White House hinted that a new round of trade talks could be announced in the coming weeks.
While markets remain sensitive to political developments, Thursday’s session suggested that strong corporate performance can still soothe market nerves—even in turbulent conditions.
