Wall Street rallied on Thursday, snapping back from Wednesday’s losses as upbeat corporate earnings and optimism around artificial intelligence lifted sentiment.
The S&P 500 climbed 0.58% to 6,738.44, the Dow gained 144 points to 46,734.61, and the Nasdaq advanced 0.89% to 22,941.80, powered by gains in Nvidia, Broadcom, Amazon and Oracle.
Markets found another gear after the White House confirmed that President Trump will meet China’s President Xi next Thursday in South Korea, easing concerns over trade tensions. The announcement helped reverse earlier jitters caused by talk of new software export restrictions to China.
Honeywell surged nearly 7% after topping quarterly estimates and raising guidance, while American Airlines rose 6% following narrower losses and upbeat commentary.
Tesla rebounded 2% despite mixed results, and IBM pared losses after exceeding earnings forecasts.
Oil prices firmed as US sanctions on Russia’s two largest crude producers tightened supply expectations. WTI held near $61.20 after testing $62.00, while gold retreated from $4,150 to $4,050 but remains well supported by geopolitical risks and Chinese buying.
In currencies, risk appetite saw the yen weaken again while the dollar held firm ahead of today’s crucial US CPI release. The inflation data, due despite the ongoing government shutdown, could sway expectations for the Federal Reserve’s upcoming rate decision. Softer figures may trigger some dollar supply, but overall demand for the greenback remains strong amid lingering uncertainty.
European stocks also joined the rally on Friday, with the FTSE 100 hitting record highs as traders shrugged off Labour’s parliamentary setback.
Meanwhile, UK retail sales came in slightly better than forecast but with a mixed breakdown, keeping sterling steady. Eurozone flash PMIs and the US CPI later today round out the data calendar, with ECB’s Nagel also speaking.
