S&P 500 Rises Again as Tech Stocks Rally and Tensions Ease

S&P 500 Rises Again as Tech Stocks Rally and Tensions Ease

Meta leads Wall Street higher as investors focus on earnings, Fed outlook and geopolitics

US stock markets closed higher for a second consecutive session, with technology stocks leading the advance as geopolitical tensions eased and corporate earnings remained broadly supportive. The rally helped markets recover further from their sharp sell-off earlier in the week.

Wall Street Closes Higher

By the end of Thursday’s session, all three major US indices finished in positive territory:

• The Dow Jones Industrial Average rose 0.6%
• The S&P 500 gained 0.5%
• The NASDAQ Composite climbed 0.9%

The gains followed a strong rebound on Wednesday, when markets snapped their worst losing streak since October after signs of easing geopolitical risks.

Meta Leads a Strong Tech Rally

Technology stocks were the standout performers, led by a sharp rise in Meta Platforms, which jumped more than 5%.

The move followed a positive note from Jefferies, which reiterated Meta as a top investment pick, citing its attractive risk-reward profile and growing strength in artificial intelligence.

Other tech names also benefited, while sentiment in the sector was further boosted by reports that Alibaba plans to list its AI chip division, T-Head, according to Bloomberg.

Attention is now turning to upcoming results from Intel, due after the market close.

Mixed Corporate Earnings Elsewhere

Beyond technology, earnings updates produced mixed reactions across the market:

• Procter & Gamble shares finished higher despite slightly weaker-than-expected quarterly sales
• Mobileye fell sharply after missing profit expectations
• McCormick & Company slipped following an earnings miss
• Freeport-McMoRan beat profit forecasts, helped by higher copper prices

Overall, results released so far suggest corporate balance sheets remain resilient, supported by steady economic growth.

More Big Earnings Ahead

The earnings season is set to intensify next week, with several major technology firms due to report, including:

• Microsoft
• Meta Platforms
• Tesla

These results are likely to play a key role in shaping market direction in the days ahead.

Federal Reserve Meeting in Focus

Investors are also looking ahead to next week’s meeting of the Federal Reserve. Markets widely expect interest rates to be left unchanged, despite pressure from the White House to begin cutting.

Recent US economic data has been largely supportive. Weekly jobless claims rose less than expected, suggesting the labour market remains robust. Meanwhile, US GDP grew at an annualised rate of 4.4% in the third quarter, slightly above forecasts.

Attention is now turning to upcoming core PCE inflation data, the Fed’s preferred inflation measure, for clues on the future path of interest rates.

Greenland Deal Helps Calm Markets

Geopolitical concerns also eased after Donald Trump announced a framework for discussions with NATO over Greenland. The move led to the withdrawal of planned US tariffs on several European countries and reduced fears of a broader confrontation.

While details remain limited, the announcement helped reassure investors and remove a key source of recent market volatility.

Market Outlook

With earnings momentum holding up, economic data remaining firm and geopolitical risks easing, markets have found some breathing space. However, upcoming earnings, inflation data and the Federal Reserve decision mean volatility is likely to remain elevated in the near term.

Sources: (Investing.com, Reuters.com)