Stocks jumped Thursday morning as investors reacted to strong results and big AI spending plans from major technology companies.
The S&P 500 and tech-heavy Nasdaq Composite were recently up 1% and 1.9%, respectively, while the Dow Jones Industrial Average added 0.6%. Stocks closed slightly higher on Wednesday after spending much of the day in negative territory following a government report that showed the U.S. economy contracted in the first quarter for the first time in three years.
The S&P 500 and Dow closed out April on seven-session winning streaks as earnings reports have been generally strong and the Trump administration has appeared to soften its stance on tariffs. The major indexes still posted losses in April, their third consecutive monthly decline, amid ongoing uncertainty about where tariff policy will land and how it will affect the economy and companies that do business around the world.
Shares of the world’s largest technology companies were leading the move higher this morning after Microsoft (MSFT) and Meta Platforms (META) late yesterday reported quarterly results that topped Wall Street’s expectations. Microsoft shares soared 10%, while Meta rose more than 5%,
Nvidia (NVDA), which has been a prime beneficiary of the AI boom, was up about 4% as investors welcomed the news that Microsoft and Meta expect to continue investing heavily in AI infrastructure. Fellow chipmaker Broadcom (AVGO) advanced 3%, while Alphabet (GOOG) and Tesla (TSLA) each gained about 1%.
Amazon (AMZN) and Apple (AAPL), which are due to release their results after the closing bell today, were up 2.5% and down 0.5%, respectively, this morning.
Among other noteworthy post-earnings movers, CVS Health (CVS) shares jumped 7%. McDonald’s (MCD) was down nearly 2%, while Eli Lilly (LLY) and Qualcomm (QCOM) each dropped about 7%.
The economic data calendar is relatively light today. Weekly jobless claims numbers released this morning were higher than expected, adding to concerns about economic weakness, while investors will keep a close eye on manufacturing indicators. The big economic event of the week comes Friday morning, when the April jobs report is scheduled to be released.
The yield on the 10-year Treasury note, which affects borrowing costs on all sorts of consumer and business loans, was at 4.15%, down from yesterday’s close at 4.18%, trading near its lowest levels since early April. The U.S. dollar index, which measures the performance of the dollar against a basket of foreign currencies, was up 0.5% at 99.92, after hitting a three-year low below 98 early last week.
Gold futures—which hit a record high early last week of around $3,500 an ounce as investors turned to the traditional safe haven amid concerns about tariffs and the economic outlook—were down 2.6% at $3,230. West Texas Intermediate futures, the U.S. crude oil benchmark, slipped 0.3% to around $58 per barrel, trading at their lowest levels in four years.
Bitcoin was at $96,200, up from an overnight low of $94,000 and at its highest level in more than two months, as investors reassessed their risk appetite.
Nvidia Rises as Big Tech Continues Spending Big on AI
27 minutes ago
Nvidia (NVDA) shares are surging early Thursday as two of its key customers—Microsoft (MSFT) and Meta Platforms (META)—posted strong results and committed to continuing their heavy artificial intelligence spending.
During Microsoft’s earnings call Wednesday, CFO Amy Hood reiterated the company’s plan to spend $80 billion on AI infrastructure in fiscal 2025. Meta, meanwhile, said it plans to boost its capital expenditures this year to $64 billion to $72 billion to grow its AI capacity. Mark Zuckerberg, the social media giant’s CEO, called the opportunities in deploying the technology “staggering” during Meta’s earnings call.
Nvidia shares, which were up about 4% recently, have been struggling this year—the stock was down 19% year-to-date entering Thursday—partly due to investor concerns that Big Tech is slowing or pausing some AI data center buildouts amid the uncertain economic outlook. The company dominates the market for chips needed to build AI systems.
Shares in the chipmaker have also taken a hit from the rising economic uncertainty triggered by the trade war as well as growing tensions between Beijing and Washington. Nvidia recently warned investors that it expects to take a $5.5 billion first-quarter charge after the U.S. government limited exports of its AI chips to China. Nvidia is expected to report quarterly earnings later this month.
Microsoft Levels to Watch as Stock Soars After Earnings
1 hr 14 min ago
Microsoft (MSFT) shares surged in premarket trading after the company issued fiscal third-quarter results and guidance that topped Wall Street’s expectations. boosted by strong growth in its cloud business.
CEO Satya Nadella said the company’s Intelligent Cloud segment, which houses its Azure cloud computing platform, continues to benefit from businesses’ need to expand output, reduce costs and accelerate growth, adding that Microsoft continues to innovate across its AI stack.
Following a successful retest of the top trendline of a falling wedge pattern, Microsoft shares staged a sharp move higher leading into the tech giant’s earning’s report, potentially setting the stage for a longer-term bullish reversal.
It’s also worth noting that the shares on Wednesday registered their highest trading volume in three weeks, suggesting that larger market participants, such as institutional investors and hedge funds, had positioned for a significant post-earnings move.
Investors should watch two key overhead areas on Microsoft’s chart around $442 and $468, while also monitoring crucial support levels near $395 and $359.
Microsoft shares were up nearly 9% at around $430 in recent premarket trading.
Read the full technical analysis piece here.
Major Index Stock Futures Point to Sharply Higher Open
1 hr 53 min ago
Futures tied to the Dow Jones Industrial Average were up 0.8%.
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S&P 500 futures rose 1.3%.
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Nasdaq 100 futures surged 1.9%.
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