Markets Edge Higher as Optimism Lifts S&P 500 and Nasdaq to New Records
US stock indices posted modest gains on Thursday, with both the S&P 500 and Nasdaq Composite closing at record highs. The market was buoyed by an upbeat earnings forecast from Delta Air Lines and a historic closing for Nvidia. Notably, investors seemed to shrug off the latest tariff announcements from former President Donald Trump.
Delta Air Lines Lifts the Sector
Delta's stock jumped 12 percent after the airline projected third-quarter and full-year earnings that exceeded Wall Street estimates. This unexpected bullish forecast boosted investor sentiment across the transportation industry.
Airline Stocks Take Off
The positive momentum extended to other carriers as well. United Airlines shares surged 14.3 percent, while American Airlines climbed 12.7 percent. The Dow Transportation Index, often viewed as a bellwether for the broader economy, soared to its highest level since late February.
Nvidia Hits a Historic Milestone
Chipmaker Nvidia added 0.7 percent, lifting its market capitalization past the four trillion dollar mark for the first time ever. It was the second-largest contributor to the S&P 500's gains for the day.
Market Close Summary:
- Dow Jones: up 192.34 (+0.43%), ending at 44,650.64;
- S&P 500: up 17.20 (+0.27%), ending at 6,280.46;
- Nasdaq Composite: up 19.33 (+0.09%), ending at 20,630.67.
Sector Snapshot
Nine of the S&P 500's eleven major sectors ended the day higher. The communication services sector slipped nearly 0.5 percent, while the tech sector edged down by 0.1 percent.
Nvidia Hits High, but Tech Giants Diverge
While Nvidia closed at a record high, the performance across other mega-cap stocks told a more mixed story. Shares of Netflix, Microsoft, and Meta (banned in Russia) slipped, reflecting investor caution despite broader market strength.
Tesla Leads After Shareholder Meeting Announcement
Tesla shares surged by 4.7 percent, topping the S&P 500 for the day. The rally followed the company's announcement of its annual shareholder meeting, scheduled for November. The move came after pressure from a group of investors citing legal obligations to set a date.
Labor Market Momentum Fuels Recovery
Last week's strong jobs report injected renewed confidence into Wall Street, helping major indices recover from the sharp April sell-off. That downturn had been triggered by tariff announcements made on Liberation Day.
Trump Raises Tariff Pressure
Donald Trump continued his aggressive trade rhetoric with plans to implement a 50 percent tariff on copper starting in August. He also floated the idea of slapping similar tariffs on Brazilian exports. Additional notices were reportedly sent to several trade partners. For now, countries await official word from the White House, while investors monitor negotiations closely.
WK Kellogg Surges on Ferrero Takeover Rumors
Shares of WK Kellogg soared by 30.6 percent amid reports that Italian confectionery giant Ferrero is nearing a deal to acquire the cereal maker. The potential acquisition, if finalized, could significantly reshape the breakfast foods market.
Conagra Dips on Disappointing Forecast
In contrast, Conagra Brands fell by 4.4 percent after the company issued an earnings outlook that came in below Wall Street expectations. The dip was attributed to rising costs driven by import tariffs on goods such as Hunt's ketchup and metal-based packaging, particularly from China.
EUROSTOXX 50 Futures Edge Lower
Futures tied to the EUROSTOXX 50 slipped by 0.2 percent, reflecting investor caution amid renewed trade tensions and political uncertainty across key global markets.
Currency Watch: Euro Slides, Dollar Gains Ground
The euro weakened by 0.2 percent, settling at 1.1676 against the dollar. In contrast, the US dollar strengthened against its Canadian counterpart, rising 0.3 percent to 1.3695.
Trump Delays Tariffs but Escalates Pressure
Earlier this week, Donald Trump postponed the implementation of several tariffs from July 9 to August 1, giving major trade partners additional time for negotiations. However, the reprieve came alongside an expansion of the trade conflict. New duties were introduced in multiple countries, including close allies like Japan and South Korea. Notably, a steep 50 percent tariff was placed on copper imports.
Asia-Pacific Markets Climb on Stimulus Hopes
The MSCI index of Asia-Pacific shares excluding Japan rose 0.4 percent, touching its highest level since November 2021. The gains were driven by renewed optimism over policy support, particularly after Hong Kong's Hang Seng Index jumped 1.7 percent.
Chinese Stocks Gain Ahead of High-Level Talks
Mainland Chinese equities also moved higher, with the blue-chip CSI 300 climbing 0.9 percent to reach its strongest level since December. Investors are eyeing diplomatic developments as US Secretary of State Marco Rubio and Chinese Foreign Minister Wang Yi prepare to meet at the upcoming ASEAN summit.
Nikkei Flat as Uniqlo Owner Tumbles
Japan's Nikkei index closed flat, weighed down by a 6.3 percent plunge in shares of Fast Retailing. The Uniqlo parent company issued a warning about the potentially serious impact of upcoming US tariffs on its American operations later this year.
Yen Slides Further Amid Trade Deal Concerns
The Japanese yen continues its downward trajectory, pressured by growing doubts over a potential trade agreement with the United States. On Friday, the dollar rose by 0.4 percent to reach 146.88 yen. Analysts expect the dollar to post a weekly gain of 1.6 percent, marking its strongest performance of the year.
Bitcoin Breaks Records Again
Bitcoin surged by 3.8 percent, hitting a new all-time high at 117880 dollars. The rally reflects increased investor interest, driven by uncertainty in traditional markets and optimism over easing regulatory tensions in the crypto space.
Quiet Data Week Shifts Focus to Earnings
With few significant economic releases from Europe and the US, market participants are turning their attention to upcoming second-quarter earnings reports. Investors are particularly keen to assess the impact of tariffs introduced by Donald Trump starting April 2. JPMorgan Chase is set to kick off the earnings season on Tuesday with the release of its financial results.
Oil Prices Recover Modestly
Oil futures rebounded slightly after a sharp drop the previous day. Brent crude edged up by 0.2 percent to 68.77 dollars per barrel, paring back losses from Thursday's 2.2 percent decline. West Texas Intermediate (WTI) gained 0.3 percent to settle at 66.75 dollars.
Gold Gains on Market Uncertainty
Gold prices climbed as investors sought safety amid geopolitical and economic volatility. Spot gold rose by 0.4 percent, reaching 3337 dollars per ounce.
