U.S. stocks rose slightly on Thursday, with cautious gains across major indexes as disappointing quarterly results from Tesla and IBM tempered optimism from other megacap tech firms, while simmering U.S.-China trade tensions kept risk appetite subdued.
At 11:31 a.m., the Dow Jones Industrial Average gained 70.69 points, or 0.15%, to 46,661.10. The S&P 500 advanced 25.17 points, or 0.38%, to 6,724.57, while the Nasdaq Composite climbed 152.12 points, or 0.67%, to 22,892.52.
Tesla’s shares fell as much as 5% after the company missed third-quarter profit estimates, even though it slightly beat revenue expectations. The report marked the start of the so-called “Magnificent Seven” earnings parade, setting the tone for a closely watched tech reporting season. Analysts said the revenue beat did little to offset concerns about shrinking automotive margins amid rising production costs and growing competition from Chinese electric vehicle makers.
Register for Tekedia Mini-MBA edition 19 (Feb 9 – May 2, 2026): big discounts for early bird.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab: From Technical Design to Deployment (next edition begins Jan 24 2026).
But as Tesla stumbled, other technology giants moved higher, led by bargain-hunting in megacap names. Nvidia, Alphabet, Amazon, and Meta each rose about 1%, while Broadcom gained 1.4%. Together, the “Magnificent Seven” group — which represents nearly 35% of the S&P 500’s total weight — helped buoy the broader market.
Honeywell rose 7% after raising its 2025 profit forecast, even as it prepares to spin off its advanced materials division. The upbeat projection helped keep the Dow positive. However, IBM weighed on the index, slipping 2.5% after reporting a slowdown in its key cloud software unit, suggesting weaker demand in enterprise spending.
Market analysts said that while most companies have exceeded analysts’ earnings expectations so far this quarter, their cautious forward guidance has kept equity gains restrained. Investors, still wary of elevated valuations, are looking for stronger confirmation that corporate earnings can sustain momentum through the year’s end.
“Earnings data this quarter to this point has probably been even a little bit more valuable than it might be in other quarters, simply because of the lack of other data on the state of the U.S. economy,” said Jim Baird, chief investment officer at Plante Moran Financial Advisors.
That “data drought” has been deepened by the ongoing U.S. government shutdown, now in its 23rd day, which has frozen several key economic reports, including the latest jobless claims. The absence of real-time data has left investors “flying blind,” according to analysts, increasing the focus on Friday’s core CPI report — expected to hold steady at 3.1% — as the clearest signal for the Federal Reserve ahead of its policy meeting next week.
Markets are already pricing in a 25-basis-point rate cut, with traders expecting another reduction in December as inflation pressures cool. The Fed’s recent guidance suggests policymakers are leaning toward maintaining flexibility amid lingering uncertainty about the pace of economic slowdown.
Geopolitical jitters also weighed on sentiment after Reuters reported that the Trump administration was considering sweeping new restrictions on high-tech exports to China, in response to Beijing’s latest curbs on rare-earth shipments. The report reignited concerns of an escalation in the trade dispute between Washington and Beijing, which investors fear could disrupt supply chains and dampen global growth.
Energy stocks climbed 1.4% after oil prices rose following new U.S. sanctions targeting Russia’s energy exports. Chevron, Exxon Mobil, and Halliburton each gained between 1% and 2%, providing another lift to the S&P 500.
Meanwhile, the quantum computing sector rallied sharply after the Wall Street Journal reported that the Trump administration was in talks with several companies to take equity stakes in exchange for federal funding. IonQ jumped 12%, D-Wave Quantum surged 18%, and Rigetti Computing gained 13%, marking one of the day’s most active segments.
The day’s biggest decliner was Molina Healthcare, whose shares plunged 21.4% after the insurer slashed its annual profit forecast, citing higher medical costs. Peer Centene fell 6.9%, dragging down the broader healthcare sector.
On market breadth, advancing issues outnumbered decliners by a 1.48-to-1 ratio on the New York Stock Exchange and by 1.53-to-1 on the Nasdaq. The S&P 500 posted 10 new 52-week highs and four new lows, while the Nasdaq recorded 45 new highs and 62 new lows.
Traders described the session as one defined by “measured optimism,” where gains were underpinned by selective buying rather than broad enthusiasm. With U.S. economic data frozen, geopolitical risks mounting, and the Fed poised to decide on another rate cut, investors are treading carefully — waiting for the next clear signal that the rally still has room to run.