Wall Street opens higher: Nasdaq soars 350 points, boosted by Meta and Microsoft earnings
US markets opened in green on Thursday, lifted by a wave of strong quarterly results from major companies, even as uncertainty deepens amid sweeping changes to the country’s long-established trade policies.
Dow Jones Industrial Average traded at 40860.20, up 190.84 points of 0.47%. Nasdaq rallied 349.70 points or 2%, reaching 17796.04. S&P 500 also followed a similar pattern and inched up 55.24 points or 0.99%, to trade at 5624.30 at 9.30 am EDT.
Microsoft and Meta Platforms led Wall Street higher on Thursday after both tech giants posted first-quarter profits that surpassed analyst forecasts. CVS Health and several other companies also reported solid earnings, reinforcing a wave of strong results that have helped stabilise markets over the past week. Meanwhile, fresh data suggested the US job market may be showing signs of unexpected weakness.
Meta, the parent company of Facebook and Instagram, topped Wall Street expectations for both revenue and profit last quarter, driven by strong advertising sales fuelled by its use of artificial intelligence tools. The upbeat results sent Meta’s shares soaring 6.4%.
McDonald’s, however, reported a sharp drop in US same store sales, the steepest decline since the pandemic hit in 2020. Like Chipotle last week, the fast-food giant attributed the fall in customer traffic to growing economic uncertainty. Its shares dipped slightly, down less than 1% in premarket trading.
General Motors also made headlines after it cut its 2025 profit forecast, citing an estimated $4 billion to $5 billion impact from tariffs. The automaker now expects full-year adjusted earnings before interest and taxes to fall between $10 billion and $12.5 billion. Despite the lowered outlook, GM shares rose 2.8% after the company provided fresh guidance, following earlier signals that it was reevaluating its financial projections.
Investors continue to monitor the broader economic backdrop, with particular concern over President Donald Trump’s escalating trade war and its implications for growth. The persistent uncertainty has reignited fears of “stagflation,” a scenario where the economy stalls while inflation remains elevated, a combination that leaves the Federal Reserve with limited policy options, as easing one issue could worsen the other.
A key US jobs report due Friday is expected to offer more clarity, but for now, the inconsistent rollout of tariffs has left markets on edge about the direction of the economy.
