- Stocks rose modestly on Thursday, Their eighth victory day marked investor optimism after a strong slate of high-tech corporate revenues, with uncertainty about US tariff policy underway.
The stock market was put high on Thursday with strong tech company revenues highlighting the potential to make AI profits even if underlying economic news is mixed.
The S&P 500 rose 0.6% and the Dow rose 0.2%, marking eight consecutive win days in both indexes. Nasdaq, which is more technologically, had a 1.5%.
Both Meta and Microsoft reported better revenue than expected the day before. Meta, who owns Facebook and Instagram, is leaning even further towards AI, pushing up its multi-billion dollar capital spending plan. Microsoft reported a 13% revenue surge The strength of the clouds and AI business.
They are two of the so-called seven epic tech stocks that have driven the stock market higher for the majority of the post-pandemic period.
The tech company’s expansion plans show confidence in the economy despite uncertainty about US tariff policy, said Jeff Buchbinder, chief equity strategist at LPL Financial luck Earlier this week.
“The headlines are getting better, but we haven’t seen anything meaningful and concrete yet, so it seems the market is making a leap in faith to quickly get some attractive trade deals with some trading partners,” he said.
Since President Donald Trump said he had suspended tariffs for 90 days on April 9, executive officials have said negotiations have progressed, but details have been scarce. Top economist Stephen Milan on Wednesday said high taxes in China will remain in the near future.
Elsewhere, data shows that the still intense economy is quickly inviting. McDonald’s reported the biggest decline in sales since the pandemic on Thursday as consumers pulled back discretionary purchases. Burrito Chain Chipotle took note of a similar slowdown last week. And in 30 years, consumer trust has fallen with the fastest clip. Unemployment applications are steadily increasing, but far below the levels seen in the recession.
On Wednesday, the Commerce Department reported that first quarter GDP had shrunk as businesses stockpile items ahead of higher tariffs, even if underlying consumer spending remains strong.
Investors will now look to a Friday morning employment report from the Labor Bureau, which contains data collected in mid-April, drawing a clearer picture of the post-duty economy.
“Soft data has told us that the economy has been weakening for a while, but we haven’t seen that much with hard data,” says Buchbinder.
This story was originally featured on Fortune.com.
