Stocks Up After Solid GDP as Tech Earnings Roll In: Markets Wrap

(Bloomberg) — Stocks rose after data showed the world’s largest economy remains solid, which bodes well for the strength of Corporate America.

Big tech led gains on Thursday, with Tesla Inc. and Meta Platforms Inc. climbing on upbeat outlooks. Microsoft Corp. retreated after saying its cloud-computing business will continue to grow slowly in the current quarter. Traders are now eagerly awaiting to hear from Apple Inc., which is due to report results after the closing bell. United Parcel Service Inc. sank 13% on a disappointing revenue forecast.

Inflation-adjusted gross domestic product increased an annualized 2.3% in the fourth quarter after rising 3.1% in the prior three-month period, according to the government’s initial estimate published Thursday. The median forecast in a Bloomberg survey of economists called for a 2.6% growth.

To Neil Birrell at Premier Miton Investors, while the data is all a bit historic now, the economy is “doing just fine.”

“Overall, the economy is on firm footing heading into 2025, which should support risk assets given the strong linkage between economic growth and corporate profits,” said Josh Jamner at ClearBridge Investments.

The S&P 500 rose 0.4%. The Nasdaq 100 climbed 0.5%. The Dow Jones Industrial Average was little changed.

The yield on 10-year Treasuries declined one basis point to 4.52%. The Bloomberg Dollar Spot Index fell 0.3%. Euro-zone bonds continued to trade higher after the European Central Bank lowered borrowing costs for a fifth time since June.

Corporate Highlights:

• The collision between an American Airlines Group Inc. regional jet and a military helicopter near Ronald Reagan airport in Washington left no survivors on board the two aircraft, authorities said, making it one of the most deadly US air disasters in decades.
• Southwest Airlines Co. warned that costs will climb faster than expected as it grapples with heavy labor expenses, undercutting gains from strong demand for leisure travel.
• United Parcel Service Inc. projected annual revenue well below expectations, telling investors that a long-awaited rebound in demand for its parcel services won’t arrive this year.
• Tesla Inc. plans to launch a long-promised robotaxi business and get back to growing vehicle sales after a year of decline in both deliveries and earnings.
• Microsoft Corp. said its cloud-computing business will continue to grow slowly in the current quarter as the company struggles to build enough data centers to handle demand for its artificial intelligence products.
• Meta Platforms Inc. Chief Executive Officer Mark Zuckerberg exuded confidence in his company’s artificial intelligence strategy, saying 2025 will be a “really big year” in which its AI assistant will become the most widely used in the industry.
• Caterpillar Inc. warned that revenues will be “slightly lower” in 2025 as demand concerns weigh on the outlook of the heavy equipment maker.
• Mastercard Inc. reported earnings that beat estimates as the firm diversifies beyond its traditional payment network into anti-fraud services, data analysis and global money movement.

Key events this week:

• US personal income & spending, PCE inflation, employment cost index, Friday

Some of the main moves in markets:

Stocks

• The S&P 500 rose 0.4% as of 9:30 a.m. New York time
• The Nasdaq 100 rose 0.5%
• The Dow Jones Industrial Average was little changed
• The Stoxx Europe 600 rose 0.6%
• The MSCI World Index rose 0.5%
• Bloomberg Magnificent 7 Total Return Index rose 0.6%
• The Russell 2000 Index rose 1%

Currencies

• The Bloomberg Dollar Spot Index fell 0.3%
• The euro rose 0.1% to $1.0435
• The British pound rose 0.1% to $1.2466
• The Japanese yen rose 0.7% to 154.18 per dollar

Cryptocurrencies

• Bitcoin rose 1% to $104,760.07
• Ether rose 3.5% to $3,249.22

Bonds

• The yield on 10-year Treasuries declined one basis point to 4.52%
• Germany’s 10-year yield declined seven basis points to 2.52%
• Britain’s 10-year yield declined seven basis points to 4.56%

Commodities

• West Texas Intermediate crude rose 0.4% to $72.91 a barrel
• Spot gold rose 0.9% to $2,784.87 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Margaryta Kirakosian, Allegra Catelli and Divya Patil.

©2025 Bloomberg L.P.