Tech Titans Lift Markets Amidst Global Trade Tensions
The S&P 500 and Nasdaq reached record highs driven by Google's strong performance, uplifting tech shares like Microsoft and Nvidia, amidst global trade optimism. However, Tesla and IBM shares fell due to disappointing results. The Fed's interest rate strategy and looming trade wars remain significant market influencers.
The S&P 500 and Nasdaq indices soared to record highs on Thursday, buoyed by encouraging results from Alphabet, Google's parent company, which spurred a rally in other major AI stocks. However, Wall Street's enthusiasm was dampened by a sharp decline in Tesla shares, following underwhelming quarterly results.
Alphabet climbed 1.6% after its financials suggested substantial returns on its investments in AI technology. This ripple effect boosted shares in Microsoft, Nvidia, and Amazon. Meanwhile, progress in U.S.-Japan trade discussions and ongoing negotiations with the European Union contributed to market optimism.
In contrast, Tesla saw a nearly 9% drop after CEO Elon Musk cautioned about impending challenges amid reduced government support for electric vehicles. Other notable declines included IBM and Honeywell, reflecting mixed responses to second-quarter earnings across sectors.
(With inputs from agencies.)
Google News