The U.S. stock market climbed on Thursday as heavyweight companies like Nvidia (NASDAQ:NVDA) and others reported stronger-than-expected earnings. The S&P 500 Index rose 0.5%, while the Dow Jones Industrial Average jumped 1.1%. Bitcoin also made headlines, briefly surging past $99,000 before settling back slightly.
Despite mixed signals from other tech stocks, the market’s optimism reflected resilience across multiple sectors, including financials, smaller companies, and technology.
Nvidia Leads the Charge in Stock Market Gains
Nvidia continued to be a driving force on Wall Street, with shares rising 1.4% after yet another stellar earnings report. The chipmaker exceeded expectations in revenue and profit, fueled by ongoing demand for its AI chips.
Wedbush analyst Dan Ives called Nvidia’s report “flawless,” crediting CEO Jensen Huang for maintaining the company’s dominance in AI technology. Nvidia’s market performance remains crucial due to its $3.6 trillion valuation, making it a heavyweight that heavily influences the S&P 500.
The AI boom also lifted other stocks like Snowflake (NYSE:SNOW), which soared 32.3% after its earnings report showed better-than-expected revenue growth.
Bitcoin Surges Above $99,000
Bitcoin made headlines again, crossing $99,000 for the first time before retreating to $98,250, according to CoinDesk. This surge represents more than double Bitcoin’s value at the start of the year.
Several factors contributed to Bitcoin’s rise:
Regulatory Changes: SEC Chair Gary Gensler announced his resignation, raising hopes of a less restrictive crypto regulatory environment.
Political Support: President-elect Donald Trump pledged to make the U.S. a global crypto hub, including creating a “strategic reserve” of Bitcoin.
Despite its meteoric rise, Bitcoin remains volatile. MicroStrategy (NASDAQ:MSTR), a company that invests heavily in Bitcoin, initially gained 14.6% but ended the day down 10.7%.
Economic Data Offers Mixed Signals
Economic reports released Thursday highlighted the complexity of the current market environment:
Job Market Strength: Weekly unemployment claims fell, suggesting continued resilience in the U.S. labor market.
Manufacturing Weakness: The mid-Atlantic manufacturing index unexpectedly contracted, pointing to challenges in the industrial sector.
Housing Market Recovery: Sales of previously owned homes rose more than expected, providing a glimmer of hope in the housing market.
Oil Prices Continue to Climb
Crude oil prices rose for the fourth consecutive day amid escalating tensions in the Russia-Ukraine conflict. Benchmark U.S. crude gained 2%, while Brent crude, the international standard, climbed 1.8%.
Rising oil prices contributed to gains in energy stocks, supporting the broader market’s advance.
Tech Sector Faces Challenges
While many areas of the stock market showed strength, some tech giants struggled.
Alphabet (NASDAQ:GOOGL): Google’s parent company dropped 5.5% after U.S. regulators called for breaking up its Chrome browser and limiting its Android dominance.
Amazon (NASDAQ:AMZN): Amazon shares slid 2.4%, further weighing on tech-heavy indices.
Despite these setbacks, the overall stock market remained buoyant, supported by gains in smaller companies and financials.
International Markets React
Global markets reflected a mixed sentiment:
India: Adani Enterprises plummeted 22.6% following U.S. charges against founder Gautam Adani for alleged fraud.
Europe and Asia: Indexes showed varied performance, with little consensus on market direction.
Outlook for Stock Market Today
The combination of strong earnings from companies like Nvidia and optimism around Bitcoin’s rise has buoyed investor sentiment. However, headwinds in the tech sector and mixed economic data highlight the importance of diversification.
As the year progresses, markets will continue to navigate the intersection of macroeconomic uncertainty, regulatory developments, and company-specific performance.
Whether you’re watching Nvidia, Bitcoin, or Alphabet, staying informed about key drivers is essential for making smart investment decisions.
Featured Image: Freepik © freepik
