US stocks climbed higher on Thursday as the nation’s GDP growth surpassed expectations, despite disappointing earnings from electric vehicle giant Tesla. The Dow Jones Industrial Average opened 0.2% higher, while the S&P 500 rose 0.4% after reaching a record close the previous day. The tech-heavy Nasdaq 100 also saw gains of around 0.5%.
In the morning, an initial estimate revealed that the US economy had grown by 3.3% on an annualized basis in the fourth quarter, outperforming economists’ predictions of 2% growth. This positive economic news helped bolster investor confidence and contributed to the overall market uptick.
However, Tesla’s quarterly results painted a less upbeat picture. The company warned of a significant slowdown in its electric vehicle production growth and fell short on profit expectations. CEO Elon Musk expressed concern about the possibility of Chinese carmakers overtaking Tesla in the absence of trade restrictions. As a result, Tesla’s stock plunged by 8% in premarket trading, underperforming other tech-centered stocks that have been the driving force behind the S&P 500’s recent rally.
Looking ahead, the performance of Intel and several airlines, including American Airlines, Alaska Airlines, and Southwest Airlines, will be in focus as investors eagerly await their respective earnings reports. In particular, Intel’s results will be closely watched for any indications of how artificial intelligence advancements may impact the chipmaker’s business.
In other aviation news, the Federal Aviation Administration (FAA) recently authorized the return of Boeing 737 Max 9 jets to service following safety checks, with airlines now responsible for conducting the necessary inspections. However, the FAA also instructed Boeing to halt any plans to increase production of the model. This decision not only caused a decline in Boeing’s stock price but also raised concerns about the potential disruptions faced by the company’s customers and suppliers.
As the markets continue to navigate a blend of positive economic growth and mixed corporate earnings, investors will closely monitor the latest developments and quarterly reports to make informed decisions. Overall, the stock market today experienced upward momentum driven by stronger-than-expected GDP growth, despite Tesla’s struggles and concerns surrounding Boeing’s operations.
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