NEW YORK — On Thursday, stocks in the U.S. saw a general upswing, propelled by a wave of profit announcements from major corporations, although declines in shares of Nvidia and Microsoft tempered the overall market performance.
In midday trading, the S&P 500 had climbed by 0.1%, with four out of five stocks on the index showing gains. The Dow Jones Industrial Average recorded a rise of 57 points, equating to 0.1%, as of 11:25 a.m. Eastern Time, while the Nasdaq composite experienced a decrease of 0.3%.
Meta Platforms emerged as a significant contributor to the market’s rise with a 1.5% increase. The parent company of Facebook and Instagram exceeded profit expectations for the end of 2024. Moreover, it emphasized its commitment to artificial intelligence (AI), stating it would continue to invest in the sector.
This assurance alleviated some concerns that had arisen from Chinese rival DeepSeek, which claimed to have created a large language model capable of rivaling top global models without relying on advanced chips. This announcement had initially raised doubts about the necessity of ongoing investments in AI technology, data centers, and power, which unsettled the market at the week’s beginning.
The AI boom has significantly contributed to the U.S. stock market’s repeated records in prior years, notably impacting stocks like Nvidia, which faced substantial losses. On Thursday, Nvidia fell by 3.9%, significantly weighing on the S&P 500.
Microsoft also exerted considerable downward pressure on the index, shares plummeting by 6.2%. Although the technology giant reported profits that exceeded analysts’ expectations for the recent quarter, investor focus shifted to the slower-than-anticipated growth of its cloud computing arm, which is crucial to its AI initiatives.
CEO Satya Nadella addressed the implications of DeepSeek’s innovations in his statements about AI, acknowledging their contributions while advocating for advancements that encourage consumption and app development.
Companies are under growing pressure to deliver stronger profit reports to counteract the downward pull on stock valuations caused by rising bond yields. As interest rates on bonds rise, investors become less inclined to pay high prices for stocks.
Treasury yields have been increasing due to concerns that inflation may remain elevated above the Federal Reserve’s 2% target. Contributing factors include a robust U.S. economy and apprehensions about potential new tariffs and policies under President Trump.
On Thursday, Treasury yields stabilized following a report indicating solid, though slightly slower-than-expected, economic growth in the U.S. for late 2024. The 10-year Treasury yield remained steady at 4.53%, comparable to its late-Wednesday figure.
Yields experienced some downward pressure as the European Central Bank made a significant decision to lower its main interest rate, aiming to invigorate its stagnant economy. Meanwhile, in Washington, the Federal Reserve has also been lowering its main rate since September to enhance the U.S. economy, but opted to maintain the status quo during Wednesday’s meeting. Fed Chair Jerome Powell noted that the Fed seeks more signs of either inflation slowdown or job market softness before considering further rate reductions.
On Wall Street, Tesla shares rose by 1.9%, despite previously fluctuating between gains and losses. Although the electric vehicle manufacturer reported a weaker than expected profit for the recent quarter, CEO Elon Musk announced plans to introduce unsupervised “full self-driving” technology as a paid service starting in Austin this June.
IBM saw a remarkable jump of 12.4%, surpassing analyst profit expectations. CEO Arvind Krishna highlighted the company’s growing generative AI endeavors, projecting an overall revenue increase of at least 5% for this year.
Conversely, UPS shares tumbled by 17.6% despite beating profit expectations. The delivery service revealed that Amazon, its largest client, would cut its volume by over 50% in the latter half of 2026.
American Airlines’ stocks dropped by 2.4% following a midair collision involving an American Eagle flight and an Army helicopter near Washington. The cause of the incident is currently under investigation.
Globally, stock indices in Europe saw upward movement, influenced by a 0.3% increase in Japan’s Nikkei 225, while several markets in Asia remained closed in observance of the Lunar New Year holiday.
