NEW YORK — On Thursday, U.S. stock markets reached new heights, with Wall Street recapturing some of the energy that propelled it to 57 record highs the previous year.
The S&P 500 index advanced by 0.5%, surpassing the previous record set earlier in the month, marking its seventh gain in eight trading days. Meanwhile, the Dow Jones Industrial Average surged by 408 points or 0.9%, and the Nasdaq composite added 0.2% to its score.
This upward trend occurred amidst relatively stable U.S. Treasury yields, which had experienced significant fluctuations in recent months, impacting stock market stability, especially with rising concerns regarding inflation and the U.S. government’s significant debt levels prompting higher Treasury yields.
Treasury yields saw a slight uptick after remarks made by former President Donald Trump at a video conference during the World Economic Forum, where he mentioned potential tariffs on products manufactured outside the U.S. However, these yields eventually dipped as he provided minimal specifics. Additionally, crude oil prices fell following Trump’s call for oil-producing nations to lower crude prices, which would alleviate inflationary pressures.
The yield on the 10-year Treasury note rose slightly to 4.64% from 4.61% recorded late Wednesday, although it remains below the peak observed earlier this month. Conversely, the two-year Treasury yield decreased marginally to 4.29% from 4.30%.
Earlier reports indicated a greater number of U.S. workers had applied for unemployment benefits last week than economists anticipated. However, despite the rise, Chris Larkin, managing director of trading and investing at E-Trade from Morgan Stanley, noted that the figures fell within a modest range established in recent months, highlighting that employment continues to showcase strong U.S. economic performance.
Market observers do not predict this unemployment report will prompt the Federal Reserve to lower interest rates at its upcoming meeting next week, according to data from the CME Group. If accurate, this would mark the first Federal Reserve meeting since September without a rate cut aimed at stimulating the economy. Lower interest rates typically boost investment prices but may also exacerbate inflation.
Among individual stocks, GE Aerospace surged 6.6% following a strong quarterly profit report that exceeded analysts’ expectations. The company, which separated from General Electric last year alongside two other entities, noted a remarkable 50% surge in orders for its airplane engines and services, reaching $12.9 billion.
Netflix also played a significant role in lifting the S&P 500, surging an additional 3.2% after a substantial 9.7% increase the prior day, driven by a solid profit performance that aligned with expectations.
Union Pacific’s stock increased by 5.2% after it outperformed profit forecasts for the most recent quarter, attributing its success to an increase in workforce productivity and improved fuel efficiency.
In contrast, American Airlines shares fell by 8.7%. Despite reporting better-than-expected profit and revenue for the last quarter, the airline cautioned that it might experience a larger-than-expected loss in the first three months of 2025 and provided an annual profit forecast that fell short of analyst expectations.
Electronic Arts faced a significant decline of 16.7% after announcing a slowdown in revenue associated with its soccer game, EA Sports FC25, along with fewer players engaging with its Dragon Age title, which also impacted its revenue projections.
Overall, the S&P 500 climbed by 32.34 points to finish at 6,118.71, the Dow Jones Industrial Average rose by 408.34 points to close at 44,565.07, and the Nasdaq composite added 44.34 points, ending at 20,053.68.
Internationally, stock markets exhibited mostly subdued movements, even after China made attempts to lift stock values in its economy. Although Hong Kong’s market received a temporary boost when China mandated pension and mutual funds to invest more in domestic stocks, the Hang Seng index ultimately closed down by 0.4%.
Japanese markets saw the Nikkei 225 index increase by 0.8% despite a pronounced decline in Fuji Media Holdings shares following the retirement announcement of top TV host Masahiro Nakai amid sexual assault allegations affecting Japan’s entertainment sector. This scandal resulted in significant advertising losses for Fuji TV, where Nakai worked.
In the fluctuating cryptocurrency market, where investor optimism surged with hopes of a more favorable stance from Washington toward the industry under Trump’s leadership, Bitcoin dipped below $103,000 after reaching a record high of over $109,000 earlier in the week, according to CoinDesk.
