US stocks struggled to make headway on Thursday as investors digested megacap tech earnings and waited for Apple (AAPL) results for more clues on prospects for Big Tech.
The S&P 500 (^GSPC) hovered near the flatline, while the Dow Jones Industrial Average (^DJI) added 0.1%. The tech-heavy Nasdaq Composite (^IXIC) dipped 0.4%, dragged by shares of Nvidia (NVDA) and Microsoft (MSFT) down 4% and 6%, respectively.
After the Federal Reserve stood pat on interest rates as expected, investors have turned to parsing earnings reports — and in particular, the first wave of results from the “Magnificent Seven” companies that have driven broader stock market gains.
Tesla’s (TSLA) stock ticked higher despite an earnings miss as investors took on trust its vow to return to growth in 2025. Meanwhile, Meta’s (META) quarterly earnings beat helped lift its shares, but Microsoft stock slumped after its cloud revenue fell short.
Faith in Big Tech was put to the test after DeepSeek’s cheaper AI model rattled assumptions about the likelihood of a payoff, the focus was on the rationale for their massive AI investments.
Apple (AAPL), whose stock has been hit by multiple downgrades, is scheduled to report earnings after the bell. Investors will scrutinize its quarterly report after the bell for signs its iPhone sales are doing better than feared. Chipmaker Intel (INTC) will also report results.
Meanwhile Mastercard (MA) stock jumped to all-time highs after the credit card company’s profit came in better than expected. Peer Visa (V) will report after the bell.
The Bureau of Economic Analysis’s advance estimate of fourth-quarter gross domestic product (GDP) showed the US economy grew at an annualized pace of 2.3%, below the 2.6% expected by economists.
Meanwhile, American Airlines (AAL) CEO Robert Isom expressed condolences following the 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,” said Isom.
