By Lumine
NEW YORK, Wall Street charged higher Thursday, marking its eighth straight day of gains, fueled by blockbuster earnings from Microsoft and Meta Platforms that sent AI-related stocks soaring, even as investors weighed signs of mounting economic strain.
The S&P 500 climbed 0.6%, the Nasdaq surged 1.5%, and the Dow Jones Industrial Average edged up 0.2%, with all three indexes recovering from early losses. Traders appeared to shrug off fears from the recent GDP contraction, instead doubling down on tech optimism and long-term bets in artificial intelligence infrastructure.
Tech Titans Drive Market Momentum
Microsoft shares jumped nearly 8%, while Meta rose over 4%, after both companies posted earnings far above expectations. Their aggressive AI spending forecasts sparked gains across the sector, lifting:
- Nvidia (+2.5%)
- Broadcom (+2.5%)
- Alphabet (+1%)
The rally reaffirmed AI’s dominance as the market’s driving force, even amid broader economic uncertainty.
BUT ECONOMIC STRESS LINGERS
The rally came despite troubling macro signals. The Commerce Department confirmed a 0.3% GDP contraction in Q1, the first decline in three years. Adding to the caution, Thursday’s jobless claims ticked higher, raising stakes for Friday’s critical April jobs report.
The Trump administration’s recent shift toward softer trade rhetoric helped soothe markets, but economists warned that beneath the surface, the economy remains fragile.
“There’s a real disconnect between market momentum and economic fundamentals,” said Michelle Harrington, chief equity strategist at GWI Capital. “Investors are betting on the future, but the present remains shaky.”
EARNINGS SHAKEUP: WINNERS & LOSERS
Quarterly earnings painted a mixed picture across key sectors:
- CVS Health: +4%
- Eli Lilly: -12%
- Qualcomm: -9%
- McDonald’s: -2%
- Amazon: +3% (ahead of earnings)
- Apple: +0.3% (ahead of earnings)
After-hours trading showed signs of investor caution, with volatility expected around Friday’s data drop.
MARKETS SNAPSHOT (as of Thursday’s close)
- 10-Year Treasury Yield: ↑ to 4.22% (from 4.18%)
- Gold: ↓ 2.1% to $3,250/oz (off recent $3,500 peak)
- Oil (WTI): ↑ 1.3% to $59/barrel
- Bitcoin: ↑ to $96,500, highest in over two months
WHAT’S NEXT
Friday’s April jobs report could be the tipping point, revealing whether the U.S. economy is on a gradual rebound, or bracing for deeper trouble.
While AI-driven euphoria continues to lift Wall Street, investors remain jittery, closely watching Washington’s next moves on tariffs, trade policy, and monetary response.
