Stocks saw considerable volatility over the course of the trading session on Thursday, with the major averages showing wild swings back and forth across the unchanged line before eventually closing in positive territory.
The Dow climbed 168.61 points or 0.4 percent to 44,882.13, ending the day within striking distance of the record closing high set in early December.
The S&P 500 also advanced 31.86 points or 0.5 percent to 6,071.17, while the Nasdaq rose 49.43 points or 0.3 percent to 19,681.75.
The major averages moved sharply lower late in the session after President Donald Trump said he would follow through on his threat to impose 25 percent tariffs on imports from Canada and Mexico on Saturday, February 1st.
However, the major averages rebounded going into the close, reflecting the significant volatility seen throughout the session.
The choppy trading on the day came amid a mixed reaction to earnings news from several big-name companies.
Shares of IBM Corp. (IBM) skyrocketed by 13.0 percent after the tech giant reported fourth quarter earnings that exceeded analyst estimates.
Facebook parent Meta Platforms (META) also posted a notable gain after reporting fourth quarter results that beat estimates on both the top and bottom lines.
On the other hand, shares of Microsoft (MSFT) plunged by 6.2 percent after the software giant reported better than expected fiscal second quarter results but provided disappointing revenue guidance for the current quarter.
Delivery giant UPS (UPS) also showed a substantial move to the downside, plummeting by 14.1 percent after reporting fourth quarter earnings that beat expectations but forecasting full-year revenue below analyst estimates.
UPS also announced it has reached an agreement with Amazon (AMZN) to lower its volume by more than 50 percent by the second half of 2026.
In U.S. economic news, the Commerce Department released a report showing U.S. economic growth in the fourth quarter of 2024 slowed by more than expected.
Sector News
Gold stocks moved sharply higher as the price of the precious metal reached highs, driving the NYSE Arca Gold Bugs Index up by 4.1 percent to its best closing level in well over a month.
Interest rate-sensitive utilities and housing stocks also saw considerable strength, with the Dow Jones Utility Average and the Philadelphia Housing Sector Index surging by 2.4 percent and 2.3 percent, respectively.
Significant strength was also visible among semiconductor stocks, as reflected by the 2.3 percent jump by the Philadelphia Semiconductor Index.
Networking, airline and pharmaceutical stocks also saw notable strength, while the steep drop by Microsoft weighed on the software sector.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Thursday, with many markets still closed for Lunar New Year. Japan’s Nikkei 225 Index rose by 0.3 percent, while Australia’s S&P/ASX 200 Index climbed by 0.6 percent.
The major European markets also moved to the upside on the day. While the U.K.’s FTSE 100 Index jumped by 1.0 percent, the French CAC 40 Index advanced by 0.9 percent and the German DAX Index increased by 0.4 percent.
In the bond market, treasuries moved higher after ending the previous session roughly flat. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell 4.3 basis points to a one-month closing low of 4.512 percent.
Looking Ahead
A Commerce Department report on personal income and spending is likely to be in focus on Friday, as it includes readings on consumer price inflation preferred by the Federal Reserve.
On the earnings front, Apple (AAPL) and Intel (INTC) are among the companies releasing their quarterly results after the close of today’s trading.
Energy giants Exxon Mobil (XOM) and Chevron (CVX) are also among the companies due to report their quarterly results before the start of trading on Friday.
Business News
Major Averages Close Higher Following Significant Late-Day Volatility
2025-01-30 21:14:37
