Zacks Equity Research
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Wall Street closed higher on Thursday, driven by discretionaries and utility stocks. Markets shrugged off tariff concerns with the extension of the tariff deadline to Aug. 1. Jobless claims came down, raising the notion that the labor market remained resilient. All three benchmark indexes closed in the green.
The Dow Jones Industrial Average (DJI) rose 0.4%, or 192.34 points, to close at 44,650.64. Twenty components of the 30-stock index ended in positive territory, while 10 ended in negative.
The tech-heavy Nasdaq Composite gained 19.33 points, or 0.1%, to close at 20,630.67.
The S&P 500 added 17.20 points, or 0.3%, to close at 6,280.46. Nine of the 11 broad sectors of the benchmark index closed in the green. The Consumer Discretionary Select Sector SPDR (XLY), the Utilities Select Sector SPDR (XLU) and the Energy Select Sector SPDR (XLE) advanced 1.1%, 0.8% and 0.8%, respectively, while the Technology Select Sector SPDR (XLK) lost 0.3%.
The fear-gauge CBOE Volatility Index (VIX) decreased 1% to 15.78. A total of 18.2 billion shares were traded on Thursday, lower than the last 20-session average of 18.3 billion. Advancers outnumbered decliners by a 2.23-to-1 ratio on the NYSE and by a 1.38-to-1 ratio on the Nasdaq.
Despite the announcement of new tariffs by President Trump, markets appeared largely unbothered on Thursday. Trump imposed a 50% tariff on copper imports from Brazil and other restrictions on Chinese e-commerce platforms, with the measures set to take effect on Aug. 1. Initially, such announcements might have sparked volatility, especially given concerns over global trade and inflation. However, investors seemed to interpret the developments more as political posturing than immediate economic threats.
The timing of the tariffs played a key role in calming investor nerves. With the implementation date weeks away, traders saw the move as a bargaining chip that could still be watered down or delayed. As a result, broader equity indices not only held steady but continued their upward climb, indicating faith in underlying economic momentum. Risk appetite remained intact, helped by strong earnings from key companies and confidence in U.S. economy’s resilience. Delta Air Lines, Inc. DAL beat second-quarter earnings and revenue estimates, and sent airline stocks soaring.
Shares of United Airlines Holdings, Inc. UAL and American Airlines Group Inc. AAL added 14.3% and 12.7%, respectively. Both currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
