US stocks made little progress on Thursday as investors assessed megacap tech earnings and awaited Apple’s (AAPL) quarterly results for insights into Big Tech’s outlook.
The S&P 500 (^GSPC) and Dow Jones (^DJI) both gained 0.3%, while the Nasdaq Composite (^IXIC) hovered near the flatline, weighed down by 3% and 6% drops in Nvidia (NVDA) and Microsoft (MSFT), respectively.
Tech Earnings Under Scrutiny
Following the Federal Reserve’s decision to hold interest rates steady, market attention has shifted to earnings reports—particularly from the Magnificent Seven, which have been key drivers of stock market gains.
- Tesla (TSLA): Shares edged higher despite an earnings miss, as investors focused on its pledge for growth in 2025.
- Meta (META): Stock rose after strong quarterly earnings but failed to lift broader sentiment.
- Microsoft (MSFT): Shares dropped 6% as cloud revenue disappointed.
- Nvidia (NVDA): Fell 3%, as investors continued to react to DeepSeek’s low-cost AI model, which challenges assumptions about Big Tech’s AI spending.
Apple and Intel Earnings on Deck
Investor focus now turns to Apple (AAPL), whose shares have been under pressure from multiple analyst downgrades. The iPhone maker will report earnings after the bell, with markets watching for signs that iPhone sales are holding up better than expected.
Chipmaker Intel (INTC) is also set to report, with investors monitoring its outlook amid ongoing AI-driven semiconductor demand.
Mastercard Surges, Visa to Follow
Mastercard (MA) stock hit an all-time high after posting stronger-than-expected profits. Peer Visa (V) will report later in the day, with expectations of similar strength in the payments sector.
US GDP Growth Slows
The latest GDP report from the Bureau of Economic Analysis showed that the US economy grew at an annualized 2.3% pace in Q4, falling short of the 2.6% estimate from economists surveyed by Bloomberg.
American Airlines CEO Responds to Tragedy
American Airlines (AAL) CEO Robert Isom expressed condolences following a tragic collision between an American passenger jet and a US Army helicopter on Wednesday night.
“We’re absolutely heartbroken for the family and loved ones of the passengers and crew members and also for those that were on the military aircraft,” Isom said.
