US Markets Update: Stocks Near Record Highs Amid Diverging Big Tech Earnings; Gold Continues Strong Rally
US stocks experienced a mixed day of trading on Thursday, remaining close to record highs as investors analyzed varied earnings reports from major corporations. The S&P 500 saw a slight increase, while the Dow Jones Industrial Average rose modestly. In contrast, the Nasdaq composite faced a decline, primarily due to losses in significant technology stocks. Meanwhile, gold prices surged, reflecting a strong safe-haven rally amid ongoing economic uncertainties.
Market Performance Overview
On Thursday, the S&P 500 edged up by less than 0.1%, maintaining its position near the all-time high reached earlier in the week. The Dow Jones Industrial Average increased by 162 points, or 0.3%. However, the Nasdaq composite fell by 0.6%, largely influenced by declines in major technology shares. This divergence in performance highlights the mixed sentiment among investors as they navigate through the latest earnings reports from influential companies on Wall Street.
Technology Sector Dynamics
The technology sector played a pivotal role in the day’s market fluctuations. Microsoft saw a significant drop of 10.4% despite reporting better-than-expected profit and revenue figures for the latest quarter. Investors expressed concerns regarding the company’s rising capital expenditures and the growth trajectory of its Azure cloud business. Additionally, uncertainty surrounding the profitability of its artificial intelligence initiatives contributed to the stock’s decline. Conversely, Meta Platforms experienced an impressive gain of 8.6% after surpassing profit expectations, even as it indicated ongoing heavy investments in AI.
Notable Earnings Reports
Tesla’s stock dipped by 0.7% following an initial positive response to its earnings report. Although the automaker reported profits exceeding estimates, its earnings were significantly lower than the previous year. CEO Elon Musk urged investors to focus on long-term prospects, such as robotaxis and robotics, rather than current car sales figures. In contrast, IBM’s shares rose by 7.1% after exceeding profit and revenue forecasts. Southwest Airlines also saw a notable increase of 9.7%, despite missing profit estimates, as it provided a strong outlook for 2026 driven by operational changes.
Commodity and Currency Movements
In the commodities market, gold prices soared by 4.5%, reaching $5,579 an ounce. This increase extends a remarkable rally that has seen gold gain over 25% this year and nearly double in value over the past 12 months. The surge in gold prices reflects investor concerns over high equity valuations, geopolitical risks, and heavy government debt burdens. Meanwhile, the US dollar weakened slightly against major currencies, continuing a broader downtrend. In the bond market, Treasury yields remained stable, with the 10-year yield holding at 4.26%. Investors also processed the Federal Reserve’s recent decision to pause interest rate cuts, as inflation continues to exceed the central bank’s 2% target.
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