Stock Prices Surge Today: Microsoft and Meta Climb Following Earnings Reports; Apple and Amazon Results to Follow; S&P and Dow Maintain Growth for Eighth Consecutive Day
Stocks soared Thursday morning, with tech companies leading the charge, following impressive financial results and AI spending plans. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average were all up, with the Nasdaq climbing 2.5% and the S&P 500 notching a 1.5% gain.
The tech-led surge took stocks out of the red from Wednesday, when they had stumbled in response to a disappointing economic report. Despite the recent turbulence, the major indexes managed to end April on seven-session winning streaks, with strong earnings reports and a seemingly softer stance on tariffs from the Trump administration fueling the rally. April, however, saw the major indexes post losses in a third consecutive month, as uncertainty surrounding tariff policy and its impact on the economy and global businesses persisted.
Shares of big tech players like Microsoft, Meta Platforms, and Nvidia were driving the rally this morning. Microsoft and Meta reported quarterly results that topped analyst expectations, with Microsoft soaring more than 9% and Meta rising 6%. Nvidia, a key beneficiary of the AI boom, gained about 4%, as both Microsoft and Meta announced plans to continue investing heavily in AI infrastructure.
Other significant movers among tech stocks included Alphabet, Tesla, and Amazon, which were up 2%, 3%, and 3%, respectively. The duo, Apple and Amazon, will report their results later today.
When it came to tech earnings, other notable post-earnings movers were CVS Health, Eli Lilly, and Qualcomm, which saw shares jump 7%, tumble about 8%, and fall slightly, respectively. McDonald’s was also down slightly.
The economic calendar was light for the day, but investors kept an eye on jobless claims numbers and manufacturing indicators. The big event of the week was set to come Friday morning with the release of the April jobs report.
Other market-moving events included a drop in the yield on the 10-year Treasury note and a slight increase in the U.S. dollar index. The yield, which affects consumer and business loans, dropped to 4.21%, its lowest level since early April. The U.S. dollar index, which measures the U.S. dollar's performance against a basket of foreign currencies, inched up 0.7% to 100.20.
Gold futures, which soared to a record high early last week due to concerns about tariffs and the economic outlook, were down 2.7% at $3,230. West Texas Intermediate futures, the U.S. crude oil benchmark, gained 0.7% to $58.60, after falling to a four-year low the previous day. Bitcoin, which is largely driven by investor risk appetite, was at $97,000, up from an overnight low of $94,000 and at its highest level in more than two months.
Meta Platforms stock soared more than 6% on the back of quarterly financial results and executives' positive comments, which investors interpreted as a sign of strength in the tech trade. Earnings and revenue came in higher than Wall Street expected, and the company boasted of growing use of its AI offerings and reaffirmed ambitious capital spending plans. Analysts were already bullish on Meta stock before the results, and several became even more so afterward, with JPMorgan boosting its target by $65 to $675 and Bank of America raising its target by $50 to $690.
Eli Lilly stock fell after the pharmaceutical giant reported earnings that topped analyst expectations but lowered its outlook due to reduced profit projections and net losses on investments in equity securities.
Nvidia shares were surging due to the big tech companies' commitment to continuing their AI spending. Microsoft said it planned to spend over $80 billion in fiscal 2025 on AI infrastructure, and Meta announced it would raise its capital expenditures this year to between $64 billion and $72 billion to boost its AI capacity.
- The tech-led surge in stocks, including Meta Platforms, saw Meta's stock soar more than 6%, following its impressive quarterly financial results and executives' positive comments.
- Despite the impressive gains in tech stocks, Eli Lilly's stock fell after it reported earnings that topped analyst expectations but lowered its outlook due to reduced profit projections and net losses on investments in equity securities.
- In the world of finance and business, Bitcoin, largely driven by investor risk appetite, was at $97,000, up from an overnight low of $94,000, and at its highest level in more than two months.
- The tech companies' commitment to AI spending was noteworthy, with Microsoft planning to spend over $80 billion in fiscal 2025 on AI infrastructure and Meta announcing it would raise its capital expenditures this year to between $64 billion and $72 billion to boost its AI capacity.
- Amidst the surge of tech stocks, other significant movers included Nvidia, which was up about 4%, due to its role as a key beneficiary of the AI boom.
- Technical analysis played a crucial role in trading, as analysts became even more bullish on Meta stock after its results, with JPMorgan boosting its target by $65 to $675 and Bank of America raising its target by $50 to $690.
- In the realm of ICOs and tokens, Bitcoin's price tumbled from a record high earlier in the week, settling at $97,000, potentially indicating a shift in investor risk appetite.
