U.S. Stocks Near Record Amid Earnings Strength/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The S&P 500 climbed 0.4%, just 0.5% shy of its all-time high, led by strong performances in tech and industrials. McCormick and Micron delivered robust earnings and forecasts, boosting investor confidence in corporate fundamentals amid tariff uncertainty. Economic reports showed resilient durable‑goods orders and low jobless claims, offsetting a downwardly revised Q1 GDP print.
Quick Look
- S&P 500: +0.4%, trading near record high
- Dow Jones: +207 points, +0.5%
- Nasdaq: +0.4%, bolstered by tech gains
- Top Gainers: McCormick (+5.3%), Micron, Nvidia
- Economic Data: Durable‑goods orders up; jobless claims down; Q1 GDP revised to –0.5%
- Treasuries: 10‑yr yield at 4.26%, 2‑yr at 3.73%
- Global Markets: Nikkei +1.6%, Kospi –0.9%
- Oil Prices: U.S. benchmark +1% at $65.55
U.S. Stocks Near Record Amid Earnings Strength
Deep Look
Market Snapshot:
U.S. equities edged higher in early trading Thursday, with the S&P 500 rising 0.4% and inching closer to its February record. The Dow Jones climbed roughly 207 points (+0.5%), while the Nasdaq added 0.4%, led by standout performances from select tech and industrial stocks.
McCormick Leads Industrials:
Cooking-spice giant McCormick surged 5.3% to lead the market, following a strong quarterly profit beat. The company also issued a full-year outlook above Wall Street expectations—even factoring in President Trump’s tariffs—as it plans to offset cost pressures through efficiency and price actions.
Tech Powers Rally:
Micron Technology gained 0.3% after delivering better-than-expected quarterly revenue and results. CEO Sanjay Mehrotra cited surging demand for memory chips driven by AI. Nvidia, the poster child of the AI boom, rose 0.5%, lifting its year-to-date gain to 15.3%.
Tariff Concerns Fade, But Cautious Watching Remains:
While earlier fears over Trump’s proposed tariffs rattled markets in spring—sentencing the S&P to a roughly 20% slide—investor angst has eased. Uncertainty remains about the final size, timing, and economic impact of tariffs, which continue to influence inflation and earnings forecasts.
Economic Momentum and Mixed Signals:
A trio of Thursday economic reports underscored broad resilience in spite of Q1 softness:
- Durable‑goods orders surged more than expected, signaling industrial strength.
- Weekly jobless claims dropped to 236,000—near historical lows—confirming steady employment.
- Yet, revised data showed the economy shrank 0.5% in Q1, a steeper drop than earlier 0.2% estimates. Economists largely attributed this contraction to pre-tariff import surges, expecting a rebound to approx. 3% growth in Q2.
Bond Market Response:
Following the economic updates, Treasury yields remained narrow in range: the benchmark 10‑year yield modestly declined to 4.26%, and the two-year yield edged down to 3.73%. Bond markets are also sensitive to expectations around Federal Reserve policy and potential changes at its helm.
Fed in Focus:
The Wall Street Journal reported that Trump may soon nominate a successor to Fed Chair Jerome Powell—fueling speculation over the central bank’s direction. Powell has emphasized caution on rate cuts until trade and economic data clarify. Markets warn that a politically influenced Fed appointment could add upward pressure to inflation, though monetary decisions would still require a committee consensus.
Global Markets & Commodities:
Overseas, Japan’s Nikkei added 1.6%, while South Korea’s Kospi fell 0.9%. In oil markets, U.S. crude recovered 1% to $65.55, though prices remain subdued below levels recorded before the Israel–Iran conflict.
Bottom Line:
A mixture of solid earnings, healthy economic headlines, and diminished tariff fears helped push U.S. stocks closer to record territory. Investors will now monitor upcoming guidance from the Fed, trade policy updates, and second-quarter growth data to validate this rally.
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