U.S. Stocks Steady as Market Eyes Record Highs

NEW YORK (AP) – On Thursday, U.S. stocks showed slight fluctuations as investors navigated a generally quiet day on Wall Street, positioning themselves close to a significant record.

S&P 500 Approaches All-Time High

In afternoon trading, the S&P 500 index saw a 0.3% increase, placing it on track to potentially eclipse its all-time high, which was set just weeks ago. This comes after the index nearly reached that milestone the previous day. The Dow Jones Industrial Average experienced a gain of 349 points, or 0.8%, at approximately 1:33 p.m. Eastern time, although the Nasdaq composite saw a minor decline of 0.1%.

Treasury Yields on a Stable Path

The relatively calm trading was complemented by modest movements in U.S. Treasury yields. Recently, significant fluctuations in these yields have impacted the stock market, with rising inflation fears and concerns surrounding the U.S. government’s substantial debt contributing to increased Treasury yields.

Market Reactions to Political Commentary

Treasury yields rose further following remarks from President Donald Trump at the World Economic Forum, where he discussed the possibility of imposing tariffs on imports. Though he didn’t provide detailed plans, crude oil prices dipped nearly 1% in response to his comments urging oil-producing nations to lower crude prices.

U.S. Employment Figures Impacting Expectations

The yield on the 10-year Treasury note increased slightly to 4.65%, barely below the month’s highs, while the two-year yield, which is more sensitive to Fed policy changes, decreased to 4.29%. Earlier in the day, yields remained steady following reports indicating an unexpected rise in unemployment benefit applications, which nonetheless fit within a moderate range observed in recent months.

Corporate Earnings: Mixed Results

On the corporate front, GE Aerospace shares surged 6.8% after reporting unexpectedly strong quarterly profits, with a notable 50% increase in orders for its airplane engines and services compared to last year. Conversely, Netflix also rose 2.2% following a robust earnings report, further boosting the S&P 500.

Challenges for Airlines and Video Game Producers

In stark contrast, American Airlines saw a 7.9% drop in stock value due to fears of a more significant projected loss in the first quarter of 2025. Meanwhile, video game developer Electronic Arts plummeted 16.5% after announcing revenue slowdowns related to its popular titles, highlighting the challenges facing certain sectors.

Global Market Observations

Internationally, stock movements were mostly subdued. The Chinese government’s recent moves to invigorate local stock markets resulted in a brief uptick in Hong Kong shares, although the Hang Seng index ultimately ended the day down 0.4%. In Japan, the Nikkei 225 managed a 0.8% increase despite the fallout from a scandal involving Fuji Media Holdings.

Cryptocurrency Trends Amid Political Climate

As for the cryptocurrency sphere, hope for a more favorable regulatory environment under President Trump contributed to a boost in Bitcoin prices, which hovered around $106,000 following a record high on Monday.

Conclusion: What Lies Ahead for Stocks

As U.S. stocks remain within striking distance of record highs, both corporate performance and economic indicators will play critical roles in shaping market sentiment. While fluctuations in Treasury yields and implications from unemployment data continue to influence trading dynamics, the resilience displayed by major companies suggests a cautiously optimistic outlook. Keeping an eye on these developments will be essential for investors navigating the current landscape.

AP Business Writers Matt Ott and Elaine Kurtenbach contributed to this report.