U.S. stocks close higher on strong earnings, AI optimism
NEW YORK, May 1 (Xinhua) -- U.S. stocks ended higher on Thursday, as robust earnings from major technology firms and aggressive plans for artificial intelligence investments lifted investor sentiment.
The Dow Jones Industrial Average rose 83.60 points, or 0.21 percent, to 40,752.96. The S&P 500 added 35.08 points, or 0.63 percent, to 5,604.14. The Nasdaq Composite Index increased by 264.40 points, or 1.52 percent, to 17,710.74.
Seven of the 11 primary S&P 500 sectors ended in green, with technology and communication services leading the gainers by adding 2.21 percent and 1.55 percent, respectively. Meanwhile, health and consumer staples led the laggards by losing 2.79 percent and 0.78 percent, respectively.
Leading the charge were shares of Microsoft and Meta Platforms, both of which reported better-than-expected quarterly results after the close on Wednesday. Microsoft surged 7.63 percent, while Meta gained 4.23 percent, as investors cheered their strong performance and ambitious AI spending outlooks.
Nvidia, a major beneficiary of the AI boom, climbed 2.47 percent, boosted by the positive signals from Microsoft and Meta regarding continued infrastructure investments. Broadcom rose 2.53 percent, Alphabet added 1.18 percent, while Tesla edged lower.
"Few stocks are truly immune to Trump tariffs and trade war, but AI is a lot less impacted than investors currently believe," said Jed Ellerbroek, portfolio manager at Argent Capital Management. "We're early in a very steep growth curve right now, and that goes for AI infrastructure."
Amazon and Apple, both set to release their earnings after Thursday's close, were also in focus.
Outside of tech, McDonald's reported disappointing first-quarter earnings and a decline in U.S. sales, citing the impact of tariffs on consumer behavior. McDonald's CEO Chris Kempczinski noted that Americans are "grappling with uncertainty," which weighed on spending. Shares of the fast-food giant fell 1.86 percent.
On the economic front, data was light, but the U.S. weekly jobless claims came in higher than expected, raising fresh concerns about underlying weakness in the labor market. Investors were also monitoring manufacturing indicators ahead of Friday's highly anticipated April jobs report.
The 10-year U.S. Treasury yield ticked up to 4.218 percent as of 4:30 p.m. EDT, after falling to 4.18 percent on Wednesday, its lowest level since early April, reflecting ongoing shifts in expectations around economic growth and interest rate policy.
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