Stocks Edge Higher as AI Momentum and Tech Earnings Offset Trade and Data Risks
Stocks rose Thursday, with investors turning back to bullish tech and earnings news despite persistent U.S.-China trade tensions and a lack of key economic data.
Shortly before the mid-session, the S&P 500 was up 0.41%, the Nasdaq gained 0.71%, and the Dow Jones added 118 points, or 0.26%, as tech-led optimism helped offset macroeconomic uncertainty.
Which Sectors Led the Market Gains?
Technology led sector performance, rising 0.78%, followed by communication services at 0.87% and healthcare with a 0.47% gain.
Consumer discretionary, real estate, and utilities also posted modest advances.
Energy was flat, up just 0.03%. Financials fell 0.76%, reversing earlier strength following bank earnings, while industrials slipped 0.1%.
Nine of eleven sectors were in positive territory shortly before the session’s midpoint, suggesting underlying support from diversified areas of the market.
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See all Dow Jones forecastsAre Tech Earnings Still Driving the Indexes?
Several major tech names lifted sentiment.
Broadcom rose 2% and Nvidia gained 1.2% after Taiwan Semiconductor raised its 2025 revenue growth target and posted a 40% jump in Q3 profit. The chipmaker also confirmed $42 billion in capex plans through year-end.
Salesforce surged 6%, the best performer in the Dow, after setting long-term revenue targets above $60 billion by 2030.
Micron added 3.5% after receiving a bullish analyst call from UBS, further bolstering enthusiasm around AI and chip-related plays.
How Are Trade and Policy Developments Shaping Sentiment?
President Trump’s latest trade threats, including a proposed ban on cooking oil imports from China, reignited concerns over escalating tensions. These follow recent Chinese export restrictions on rare earth minerals and Trump’s 100% tariff threat.
Meanwhile, the ongoing U.S. government shutdown has stalled the release of key economic indicators, including labor market and inflation data, leaving investors with fewer inputs to assess broader economic health.
What’s the Short-Term Market Outlook?
Despite global trade uncertainty and increased volatility—reflected in the VIX holding around 20—markets are finding support in strong corporate guidance and earnings from dominant tech names. However, reliance on a narrow group of leaders has raised concentration risk concerns.
Without broader sector participation, especially in cyclicals and financials, the rally may lack durability. For now, sentiment remains cautiously bullish, supported by earnings momentum, but vulnerable to external shocks from geopolitics and domestic policy gridlock.
More Information in our Economic Calendar.
