Stock market today: Dow, S&P 500, Nasdaq futures inch higher, eye ...

4 hours ago

Yahoo Finance

Updated Thu, Nov 7, 2024, 4:05 PM 2 min read

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US stocks stepped higher on Thursday, eyeing a return to the Trump rally as investors mapped out the next president's likely impact on markets and awaited the Federal Reserve's policy decision.

The Dow Jones Industrial Average (^DJI) hovered near the flatline, on the heels of a 1,500-point gain that marked the blue-chip gauge's best day since 2022. The S&P 500 (^GSPC) rose roughly 0.4%, while the tech-heavy Nasdaq Composite (^IXIC) moved up 0.9% as shares of chip heavyweight Nvidia (NVDA) rose to new highs.

Spirits still appear buoyant after Donald Trump's presidential election win, which sent all three major stock gauges soaring to fresh record highs on Wednesday. His plans for corporate tax cuts and deregulation have fueled optimism for a boost to the economy that will feed into stocks.

But some on Wall Street see signs of a relief rally, given Trump's decisive victory also put paid to worries about a contested vote. They suggest stock gains could slow as the euphoria fades.

The Fed's interest-rate decision later Thursday — typically, a dominant event for markets — is taking something of a back seat amid the election fallout.

For one thing, investors see a 25 basis point rate cut as pretty much a sure thing at the end of policymakers' two-day meeting. Instead, the focus is on what Chair Jerome Powell might reveal about the future path of policy, especially as Trump's return could mean rates stay higher for longer.

On the corporate front, Arm Holdings (ARM) stock fell as the chip designer's revenue forecast disappointed Wall Street hopes for stronger, AI-powered growth. By contrast, peer Qualcomm's (QCOM) shares jumped more than 4% after its sales and profit outlooks topped estimates.

Meanwhile, Trump Media & Technology Group stock (DJT) continued to pull back from the big spike that followed the election result. Shares in the company — the home of Trump's social media platform, Truth Social — fell by double digits in early trading.

S&P 500 - Figure 2 — Photo Yahoo Finance

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Nvidia, Amazon extend gains to hover at record highs

Shares of AI chip heavyweight Nvidia (NVDA) and e-commerce giant Amazon (AMZN) each gained more than 1% on Thursday, extending gains from Wednesday's monster rally following Donald Trump's White House victory.

Both stocks closed at all-time record highs on Wednesday.

Earlier this week Nvidia surpassed iPhone maker Apple (AAPL) as the largest company in the world. The AI chip maker is expected to join the Dow Jones Industrial Average on Friday, replacing semiconductor giant Intel (INTC).

Meanwhile Amazon stock has been in an upward trend after the company posted a stronger than expected quarterly result last week. On Thursday shares were trading just above $210 each.

Earnings roundup: Moderna, WBD stocks surge on Q3 results, Hershey drops

Another batch of companies reported earnings Thursday morning.

Moderna (MRNA) jumped 5% at the market open as its earnings beat expectations partly thanks to better-than-anticipated Covid vaccine sales. Warner Bros. (WBD) jumped 10% thanks to streaming growth as Max subscribers soared. Meanwhile, Hershey (HSY) fell more than 1% after sinking as much as 3% pre-market as high cocoa prices cut into its sales outlook for the year.

Here’s a closer look at how the companies performed:

Hershey: Adjusted earnings per share of $2.34 vs. $2.56 per share expected, revenue of $2.99 billion vs. $3.07 billion expected

Moderna: Earnings per share of $0.03 vs. a loss of $1.98 per share expected, revenue of $1.86 billion vs. $1.25 billion expected

S&P 500 - Figure 3 — Photo Yahoo Finance

Warner Bros.: Adjusted earnings per share of $0.05 vs. a loss of $0.12 per share expected, revenue of $9.62 billion vs. $9.81 billion expected

Meanwhile, energy companies traded flattish after showing mixed results as natural disasters impact some of their businesses. Duke Energy (DUK) saw its profits hit by hurricane costs, while Pacific Gas & Electric (PCG) missed on revenue just as it shut off power in Northern California amid fire risks. Nuclear power provider Vistra soared 11% after an earnings beat as it recovers from earlier losses.

Stocks extend gains after Trump rallly, ahead of Fed decision

Stocks extended their gains on Thursday following a monster rally on the heels of Donald Trump's White House victory. The move higher in stocks comes ahead of the Federal Reserves rate policy decision.

The Dow Jones Industrial Average (^DJI) inched up 0.1% while the S&P 500 (^GSPC) rose roughly 0.3%. The tech-heavy Nasdaq Composite (^IXIC) moved up 0.5% after all three major averages closed at record highs on Wednesday.

As Yahoo Finance's Jennifer Schonberger reports, the Federal Reserve is expected to cut interest rates by 25 basis points and avoid any unnecessary surprises after the election of Trump as the next president.

Meanwhile parts of the 'Trump Trade' showed signs of a some unwinding on Thursday as Trump Media & Technology Group stock (DJT) sank double digits, reversing the gains it enjoyed in the prior session.

DJT stock sinks, reversing election-fueled gains

Trump Media & Technology Group stock (DJT) sank double digits in premarket trading on Thursday, reversing the gains it enjoyed on Wednesday as Donald Trump clinched victory over Kamala Harris in the presidential election.

S&P 500 - Figure 4 — Photo Yahoo Finance

As Yahoo Finance's Allie Canal reports, shares in the company — the home of Trump's social media platform, Truth Social — have been on a wild ride over the past week, with the up-and-down moves mostly tied to Trump's chances of reclaiming the White House.

The stock is down about 10% over the past five days, although shares have rallied nearly 120% in the past month.