Wall Street Higher: Meta’s AI Push Boosts Market, Microsoft Drops/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The stock market climbed Thursday, with the S&P 500 rising 0.6%, the Nasdaq up 0.7%, and the Dow Jones Industrial Average gaining 127 points (0.3%). Meta Platforms surged 4.4% after reporting strong Q4 earnings and reaffirming its AI investment strategy. Tesla gained 1.6% despite weaker-than-expected profits, while Microsoft fell 4.7% due to slower growth in its cloud business. Bond yields eased after a report showed U.S. GDP growth slowing more than expected, reinforcing hopes for future Federal Reserve rate cuts.
Stock Market Gains as AI Stocks Rally: Quick Looks
- S&P 500 up 0.6%, Nasdaq gains 0.7%, Dow adds 127 points.
- Meta jumps 4.4% after strong earnings and continued AI investment.
- Tesla climbs 1.6%, with Musk reaffirming plans for full self-driving technology.
- Microsoft drops 4.7%, as cloud growth slows despite earnings beat.
- Bond yields decline after weaker-than-expected U.S. GDP growth.
- European stocks rise as ECB cuts interest rates to boost economy.
Wall Street Higher: Meta’s AI Push Boosts Market, Microsoft Drops
Stock Market Rises as Meta Leads, Bond Yields Ease
Tech Stocks Drive Market Gains
The S&P 500 rose 0.6%, the Nasdaq climbed 0.7%, and the Dow Jones Industrial Average gained 127 points (0.3%) as investors reacted to strong corporate earnings and easing inflation concerns.
- Meta Platforms surged 4.4% after delivering better-than-expected Q4 profits and reaffirming long-term AI investments.
- Tesla shares rose 1.6% despite missing earnings estimates, with Elon Musk reiterating plans to launch full self-driving technology in June.
- Nvidia dipped 0.4% as concerns lingered about AI chip demand following Chinese competitor DeepSeek’s advancements.
Microsoft’s Cloud Growth Disappoints
- Microsoft shares fell 4.7% despite beating profit estimates, as investors focused on slower-than-expected cloud growth.
- CEO Satya Nadella defended Microsoft’s AI position, arguing that efficiency gains in AI technology will lead to more industry adoption.
Bond Yields Decline After GDP Report
- The 10-year Treasury yield fell to 4.52% from 4.53%, as a weaker-than-expected U.S. GDP report raised hopes that the Fed could ease monetary policy later in 2025.
- U.S. GDP grew at a 2.3% annualized rate in Q4, slightly below expectations, signaling potential slowing in economic momentum.
Federal Reserve & ECB Rate Moves
- The Federal Reserve kept rates steady on Wednesday, signaling that more evidence of slowing inflation or economic weakness is needed before cutting rates.
- The European Central Bank (ECB) cut interest rates in an effort to revive Europe’s sluggish economy, sending European stock markets higher.
Looking Ahead: Market Outlook
- Investors are closely watching upcoming inflation data to gauge the Fed’s next moves.
- Tech sector remains key driver, with AI companies leading gains but facing volatility.
- Rate cut expectations in 2025 could provide further support to markets, though economic uncertainty remains.
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