Stocks rallied on Thursday as investors anticipated more corporate earnings reports and awaited a key labor report later in the week. The Dow Jones Industrial Average rose by 322.37 points to close at 38,225.66, the S&P 500 gained 0.91% to settle at 5,064.20, and the Nasdaq Composite surged 1.51% to end at 15,840.96. Market sentiment was boosted by a less hawkish Federal Reserve meeting, with the base case being that rate cuts are delayed but not canceled.
Chipmaker Qualcomm saw a 9.7% increase in its stock price following better-than-expected earnings and strong revenue guidance, while restaurant delivery service DoorDash dropped 10.3% after reporting a wider loss per share. Used car retailer Carvana soared 33.8% after reporting record-breaking earnings, and Moderna surged 12.7% on a smaller-than-expected loss. Megacap technology stocks also saw gains, with Nvidia and Amazon jumping over 3% each, and Apple rising 2.2% ahead of its quarterly results after the closing bell.
Investors reacted to the Federal Reserve’s decision to keep interest rates unchanged and Fed Chair Jerome Powell’s indication that an interest rate hike is not imminent. However, the futures market pricing based on the CME Group FedWatch Tool suggests only a 14% chance of a rate cut in June. Attention now shifts to Friday’s April nonfarm payrolls report, with economists expecting 240,000 job gains, down from 303,000 additions in March. Wall Street will be watching for signs of easing wage and price pressures amid concerns about potential delays in rate cut plans due to strong economic and labor market data.
Earnings season continues with reports from Apple and Amgen after the bell on Thursday, followed by Coinbase and DraftKings. Overall, the stock market remains optimistic as investors navigate through a mix of corporate earnings reports, economic data releases, and guidance from the Federal Reserve. Market analysts are closely monitoring developments to gauge the impact on stock prices and overall market sentiment, particularly in light of the ongoing uncertainty and volatility in the financial markets.
As investors await more earnings reports and economic data, the focus remains on the outlook for interest rates and the Federal Reserve’s next steps. With the labor market report scheduled for release on Friday, market participants are keen to assess the implications for future Fed policy decisions. The coming days are likely to bring further clarity on the direction of the stock market and the broader economy, as companies continue to release their quarterly results and economic indicators provide insight into the state of the recovery.
