Wall Street is edging closer to a new record on Thursday after a series of stronger-than-expected economic reports and mixed earnings results from major U.S. companies.
By early afternoon, the S&P 500 was up 0.4%, poised to surpass its all-time high set just last week. The Dow Jones Industrial Average had gained 125 points (about 0.3%), while the Nasdaq Composite added 0.8%, extending its record from the previous day.
Trading was steadier compared to the previous session, which was unsettled after President Donald Trump mentioned he had discussed the idea of firing the Federal Reserve chair. Although such a move might lead to lower interest rates favored by Wall Street, it could also weaken the Fed’s ability to tackle inflation effectively.
A standout performer was Taiwan Semiconductor Manufacturing Co., which posted a nearly 61% jump in net income from a year ago. The chipmaker reported strong demand, particularly from artificial intelligence sectors, boosting its U.S.-listed shares by 3.9%. Other AI-related stocks also saw gains, with Nvidia rising 1.3%, a key driver behind the S&P 500’s rise.
PepsiCo climbed 6.6% after surpassing revenue and profit expectations and reaffirmed its cautious financial outlook, which had been lowered earlier this year due to tariff costs and softer consumer spending.
United Airlines shares rose 1.4% following better-than-expected quarterly profits. The airline also noted an uptick in customer demand starting in early July and anticipated reduced economic uncertainty to benefit its business in the second half of the year.
Lucid Group’s stock soared 42.6% after announcing Uber’s plan to deploy 20,000 or more of its vehicles over six years for a robotaxi program using technology from Nuro. This program is slated to launch next year in a major U.S. city. Uber, which is investing heavily in both Lucid and Nuro, saw its shares dip slightly by 0.2%.
On the downside, Abbott Laboratories dropped 8.4% despite beating quarterly estimates, as it lowered the top range of its revenue growth forecast through 2025.
Elevance Health fell 11.1% after reporting weaker profits than expected and cutting its 2025 profit outlook due to rising medical costs in its Affordable Care Act business and other challenges.
Shares of Archer-Daniels-Midland and Ingredion, producers of high fructose corn syrup, also declined amid reports that Coca-Cola may switch to using real cane sugar in its flagship soda, a move prompted by President Trump, though the company has not confirmed it. Ingredion lost 1.9%, while Archer-Daniels-Midland slid 2.3%.
In bond markets, Treasury yields were mostly steady following upbeat economic reports. Retail spending in the U.S. increased more than economists had forecast, supported by a healthy jobs market, helping the economy avoid a recession. Another report showed a drop in new unemployment claims, suggesting fewer layoffs. A third indicated strong manufacturing growth in the mid-Atlantic region.
These solid economic signs may encourage the Federal Reserve to hold interest rates steady. After cutting rates late last year, the Fed has maintained them this year while waiting to see how tariffs will impact inflation and growth.
Lower rates could stimulate the economy and asset prices but risk fueling inflation, which tariffs may already be exacerbating.
Thursday’s data pushed the two-year Treasury yield slightly higher to 3.91%, reflecting expectations around the Fed’s next moves. Longer-term yields were stable, with the 10-year Treasury yield steady at 4.46%. The Fed has less control over longer-term rates, which are more influenced by bond market investors.
Yields on longer-term bonds had spiked briefly on Wednesday amid concerns that President Trump might remove Fed Chair Jerome Powell, who has resisted pressure to cut rates. A less independent Fed could keep short-term rates low, potentially letting inflation rise in the coming years. Those concerns eased after Trump said firing Powell was unlikely.
Internationally, stock markets in Europe and Asia mostly rose, reflecting a broadly positive mood in global markets.
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