U.S. stocks closed higher on Thursday, driven by a tech rally, as investors looked for more signs of easing global trade conflict. Investors also digested a mixed bag of corporate earnings. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 1.2% or 486.83 points, to close at 40,093.40 points. This was also the first time the blue-chip index closed above the 40,000 mark since April 15.
The S&P 500 jumped 2% or 108.91 points to end at 5,484.77 points and exit correction territory after recording its third straight day of gains. Tech and materials, industrials and consumer discretionary stocks were the biggest gainers.
The Technology Select Sector SPDR (XLK) rose 3.7%, while the Consumer Discretionary Select Sector SPDR (XLY) gained 2%. The Materials Select Sector SPDR (XLB) and Industrials Select Sector SPDR (XLI) each added 2.2%. Ten of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq climbed 2.7% or 457.99 points to finish at 17,166.04 points.
The fear-gauge CBOE Volatility Index (VIX) was down 6.96% to 26.47. Advancers outnumbered decliners on the NYSE by a 5.84-to-1 ratio. On Nasdaq, a 3.38-to-1 ratio favored advancing issues. A total of 14.95 billion shares were traded on Thursday, lower than the last 20-session average of 19.15 billion.
Easing Trade War Fears Send Tech Stocks on a Rally
Optimism surrounding easing trade tensions between the United States and China has been boosting stocks this week. The momentum continued for the third straight session on Thursday. However, China said that no trade talks were taking place with the United States and called for the cancellation of “unilateral tariffs” first.
China’s comments came a day after President Donald Trump said that he would take a less aggressive stance toward trade talks with China. Also, Treasury Secretary Scott Bessent said that both the U.S. and China have a chance to crack a “big deal” on trade.
Although there is a lack of clarity on trade negotiations, investors are optimistic after Trump’s comments that the tariffs will be much less than they currently are. The U.S. currently has a 145% tariff on all Chinese imports.
Tech stocks led Thursday’s rally after suffering for weeks owing to the uncertainty over the impact of tariffs on the nation’s economy. Shares of NVIDIA Corporation (NVDA) rose 3.6%, while Amazon.com, Inc. (AMZN) and Meta Platforms, Inc. (META) gained 5.9% and 2.5%, respectively Meta Platforms has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Earnings Season Gathers Pace
Investors also shifted focus to the earnings season, which some big names reporting their quarterly results on Thursday. Shares of The Procter & Gamble Company (PG) ended 3.7% lower after the company reported third-quarter fiscal 2025 earnings of $1.54 per share, which came in line with the Zacks Consensus Estimate.
Shares of American Airlines Group Inc. (AAL) popped 3.1% after the company reported first-quarter 2025 loss of $0.59 per share, narrower than the Zacks Consensus Estimate of a loss of $0.69.
Economic Data
The Labor Department reported that jobless claims totaled 222,000 for the week ending April 19, increasing 6,000 from the previous week’s revised level of 216,00. The four-week moving average was 220,250, a decrease of 750 from the previous week’s revised average of 221,000.
Continuing claims came in at 1,841,000, a decrease of 37,000 from the previous week’s revised level of 1,878,000. The 4-week moving average was 1,864,000, a decrease of 1,500 from the previous week's revised average of 1,865,500.
The National Association of Realtors said that existing home sales declined 5.9% in March to a seasonally adjusted annual rate of 4.02 million. Year over year, existing home sales 2.4% in March.
In a separate report, the Commerce Department said that orders for durable goods, items meant to last three years or more, jumped 9.2% in March, sharply higher than the consensus estimate of a rise of 2%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report Procter & Gamble Company (The) (PG): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
