The stock market saw a significant boost on Thursday as tech giants Microsoft and Meta Platforms reported stronger-than-expected profits for the first quarter of the year. The S&P 500 rose 0.6% for its eighth consecutive gain, marking its longest winning streak since August. The Dow Jones Industrial Average increased by 83 points, or 0.2%, while the Nasdaq composite climbed 1.5%.
Microsoft’s stock surged 7.6% after the company reported a 13% year-over-year increase in revenue, driven by the strength of its cloud computing and artificial intelligence businesses. Meta Platforms, the parent company of Facebook and Instagram, also exceeded analysts’ expectations for revenue and profit, with its stock climbing 4.2% after reporting that AI tools helped boost its advertising revenue.
The positive earnings reports from these influential stocks helped steady Wall Street, with the S&P 500 now within 9% of its record set earlier this year. Other companies, including CVS Health and Carrier Global, also reported better-than-expected profits, contributing to the market’s gains.
Despite the positive news, uncertainty remains about the potential impact of U.S. President Donald Trump’s trade war on the economy. Many CEOs remain cautious about the rest of the year, with General Motors cutting its profit forecast for 2025 due to expected tariffs. McDonald’s fell 1.9% after reporting weaker revenue than expected, citing consumer uncertainty.
The economic outlook remains mixed, with surveys showing increasing consumer pessimism about the economy’s direction. While some reports indicated a weakening job market, with more U.S. workers filing for unemployment benefits than expected, others suggested that manufacturing activity was better than feared. The fear of ‘stagflation,’ a scenario where the economy stagnates while inflation remains high, continues to concern investors.
In the bond market, Treasury yields fluctuated following the economic reports, with the yield on the 10-year Treasury initially falling before recovering to 4.21%. Internationally, Tokyo’s Nikkei 225 rose 1.1% after the Bank of Japan kept its benchmark interest rate unchanged, and hopes of potential trade deals helped support markets.
