Stocks rallied on Thursday, buoyed by strong corporate earnings and encouraging economic data, with all three major US indexes ending the day higher. The S&P 500 rose 0.54% to close at a record 6,297.36, its ninth record finish of the year, while the Nasdaq Composite gained 0.75% to end at an all-time high of 20,885.65, marking its tenth record close in 2025. The Dow Jones Industrial Average added 229.71 points, or 0.52%, to finish at 44,484.49.
The rally was broad-based, with both the S&P 500 and Nasdaq also setting fresh intraday highs. The gains follow a volatile week that included investor jitters over speculation that President Trump might fire Federal Reserve Chairman Jerome Powell, a rumour the president later denied.
Earnings season off to a strong start
Corporate results were a major driver of Thursday’s gains. PepsiCo shares surged over 7% after the company delivered earnings well above Wall Street expectations. United Airlines also impressed, rising 3% on a solid earnings beat.
Of the roughly 50 S&P 500 companies that have reported so far this earnings season, 88% have topped analyst estimates, according to FactSet.
Tech stocks helped fuel the rally, with a bullish forecast from Taiwan Semiconductor Manufacturing adding momentum to AI-related names. Nvidia rose more than 1%, lifting its market capitalisation toward US$4.25 trillion. The NYSE FANG+ Index, which tracks major tech giants, has now rebounded 45% from its April lows.
Retail sales and jobless claims beat forecasts
Economic data also boosted sentiment. US retail sales rose 0.6% in June, far exceeding the 0.2% consensus estimate and reversing a 0.9% decline in May, according to the Census Bureau. Initial jobless claims fell to 221,000 last week, down from 228,000 the previous week, suggesting continued resilience in the labour market.
Morgan Stanley’s Michael Gapen added that the June figures confirmed consumer strength through Q2, but warned that inflation, especially from tariffs, may dampen real spending in the second half of the year.
Australian markets set to open higher
ASX futures are pointing to a 38-point rise, or 0.4%, following Wall Street’s strong overnight lead. Investors will be watching for BHP’s quarterly operational review, due at 8:30am Melbourne time.
Other data on the radar includes Japan’s national CPI and US housing starts, with the University of Michigan’s June sentiment reading due late tonight.
