Stock Market Trading Close to All-Time Highs Still
Investors should expect a reasonably strong day of trading for Thursday after Wednesday's highs, thanks to a healthy stock market.
Quick overview
- Krispy Kreme and GoPro saw significant stock increases of 4.60% and 12.41%, respectively, on Wednesday.
- The Nasdaq Composite rose by 0.61%, while the S&P 500 added 0.78%, and the Dow Jones experienced the largest gain at 1.14%.
- The stock market remains resilient despite new tariff actions, buoyed by a recent trade deal with Japan.
- Earnings reports from Tesla and Alphabet showed mixed results, with Tesla underperforming and Alphabet exceeding expectations.
Wednesday was another day of incredible highs for the stock market, with a couple of unexpected names making the biggest waves as the market remains strong.
Krispy Kreme (DNUT) and GoPro (GPRO) made waves on Wednesday with very high stock values during the day. Krispy Kreme rose 4.60% while GoPro added an astounding 12.41%. Meanwhile, the Nasdaq Composite and S%P 500 continue to stay near record highs.
The day closed off Wednesday with the Nasdaq up by 0.61%, making a strong recovery from the previous day’s dip. The S&P 500 added 0.78%, capping off another day as a strong mover among the big three stock market indices. It was the Dow Jones, however, that made the biggest upward swing on Wednesday with an increase of 1.14%.
Will We Continue to Have a Strong Market?
The Dow enjoyed a surge in momentum thanks to many of its stocks gaining more than 2% for the day, including Boeing, Nvidia, UnitedHealth, and Merck & Co. On the lower end of the Dow, no stock dropped more than 0.76% for the day, making it easy for the index to grow substantially. The Dow is now back to numbers on par with its highest point for the year, which was previously back in January.
The stock market seems relatively unbothered by new tariff action taken by Donald Trump, especially now that a trade deal has been reached with one of the country’s biggest trade partners- Japan. The win there will likely continue to be the story as other countries negotiate with the United States and come close to what Trump is asking them for. Trump has proven that he can play hardball, and with so many countries already onboard his new tariff plans, the stock market is able to relax and expect that the very high tariffs that have been already announced will likely come down before going into effect.
A couple of major companies posted their earnings on Wednesday after the closing bell, including Tesla (TSLA) and Alphabet (GOOG). Tesla continued to underperform and miss the mark on analyst expectations. Alphabet exceeded expectations, though and should be climbing on Thursday as the market opens.
For Thursday, expect the market to continue its run of record highs and for the overall thrust of the stocks to be upward. This situation can only improve if the Federal Reserve announces an interest rate cut, as it is expected to do in the near future.
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