Wall Street extends rally on tech boost, easing tariff tensions
Indexes up: Dow 1.07%, S&P 500 1.86%, Nasdaq 2.46%
Proctor & Gamble, PepsiCo down after trimming forecasts
Hasbro, ServiceNow leap after results
March durable goods jump more than expected
Alphabet results expected after the bell
NEW YORK, April 24 (Reuters) – Wall Street extended its rally on Thursday with a solid boost from technology shares as investors parsed a mixed bag of corporate earnings and watched for signs of progress in the U.S.-China tariff stand-off.
All three major U.S. stock indexes were higher, with the “magnificent seven” group of artificial intelligence-related megacaps, boosted by AI-powered software firm ServiceNow’s better-than-expected quarterly results giving the Nasdaq the edge.
Beijing called for the cancellation of U.S. tariffs on Chinese goods, following comments from U.S. Treasury Secretary Scott Bessent signaling that the White House could be willing to de-escalate trade tensions that have whipsawed markets for weeks.
“People are trying to dial into Trump’s modus operandi,” said Thomas Martin, Senior Portfolio Manager at GLOBALT in Atlanta. “We still don’t know how things are going to shake out and there’s still a lot of disruption currently going on.”
“There’s still a lot of volatility but add to that a stock market that was oversold by virtually all measures,” Martin added. “Investors don’t want to be caught off-sides.”
As first-quarter earnings season hits full stride, the extent to which trade war uncertainties have hit business and consumer sentiment is making itself known.
Procter & Gamble, PepsiCo, Chipotle Mexican Grill and American Airlines all cut or withdrew forecasts due to elevated uncertainty among consumers.
Shares for Procter & Gamble slid by 3.9% and PepsiCo tumbled 5.3%.
Not all guidance was downbeat.
ServiceNow’s profit was better than analysts expected due to resilient demand for AI-powered software. Its shares jumped 14.8%.
Hasbro’s results beat expectations, helped by the strength of its gaming segment, sending the toymaker’s shares up 14.9%.
Of the 157 companies in the S&P 500 that have reported so far, 74% have beaten expectations, and analysts currently believe aggregate S&P 500 earnings growth of 8.9% year-on-year, up from 8.0% as of April 1, according to LSEG.
On the data front, stronger-than-expected new orders for durable goods and rangebound jobless claims painted a picture of economic resilience.
The Dow Jones Industrial Average rose 425.37 points, or 1.07%, to 40,031.94, the S&P 500 gained 100.05 points, or 1.86%, to 5,475.91 and the Nasdaq Composite gained 410.98 points, or 2.46%, to 17,119.03.
Of the 11 major sectors of the S&P 500 all but consumer staples were higher, with technology shares enjoying the largest percentage gains, up 3.2%.
Alphabet was up 2.0% and Intel was up 4.3%, ahead of quarterly reports expected after closing bell.
Advancing issues outnumbered decliners by a 5.91-to-1 ratio on the NYSE. There were 43 new highs and 20 new lows on the NYSE.
On the Nasdaq, 3,214 stocks rose and 1,145 fell as advancing issues outnumbered decliners by a 2.81-to-1 ratio.
The S&P 500 posted 4 new 52-week highs and 4 new lows while the Nasdaq Composite recorded 35 new highs and 44 new lows. (Reporting by Stephen Culp; Additional Reporting by Lisa Mattackal and Purvi Agarwal in Bengaluru; Editing by David Gregorio)
