Tech Rally Lifts Wall Street Despite U.S.–China Tensions
Tesla shares climbed 2.2% after the EV maker reported quarterly revenue of $28.1 billion, slightly above estimates.
Quick overview
- Investors returned to technology shares, boosting Wall Street's main indexes despite rising U.S.–China trade tensions.
- The Dow Jones rose 0.3%, the S&P 500 gained 0.6%, and the Nasdaq Composite advanced 0.9%.
- Concerns over potential U.S. export restrictions on products containing U.S. software added to market volatility.
- Tesla's shares increased after reporting quarterly revenue above estimates, while IBM and Moderna faced challenges in their earnings reports.
Investors piled back into technology shares on Thursday after the previous session’s pullback, lifting Wall Street’s main indexes even as U.S.–China trade tensions flared. Expectations of fresh Federal Reserve rate cuts also returned to the spotlight.
The Dow Jones Industrial Average rose 0.3% to 46,734.61 points, the S&P 500 gained 0.6% to 6,737.91, and the Nasdaq Composite advanced 0.9% to 22,941.80.
U.S.–China Frictions Resurface
Sentiment was dented by a Reuters report stating that the Trump administration is weighing sweeping export restrictions on products made with, or containing, U.S. software, in retaliation for Beijing’s curbs on rare-earth exports.
The potential measures, which would affect industries ranging from semiconductors and aerospace to consumer electronics, raise the risk of escalation between the world’s two largest economies ahead of a planned meeting between U.S. President Donald Trump and China’s Xi Jinping.
No final decision has been made, but the report suggests Washington is seeking to counter Beijing’s growing dominance in critical minerals.
Trump Targets Russian Oil Majors
Separately, Trump announced sanctions on Rosneft and Lukoil, Russia’s largest oil companies, citing Moscow’s “lack of serious commitment” to a peace process in Ukraine. Crude prices surged as much as 5.6% on concerns about tighter global supply.
The move marks a sharp shift in Trump’s stance toward Russia, after he had avoided imposing direct sanctions earlier in his second term.
Earnings Season Rolls On
Tesla shares climbed 2.2% after the EV maker reported quarterly revenue of $28.1 billion, slightly above estimates. However, net profit fell 37% as higher R&D spending and tariff-related costs ate into margins, while the expiration of U.S. EV tax credits threatens demand.
IBM shares slipped 0.8% after disappointing software revenue growth, despite third-quarter results beating expectations and an upgraded outlook driven by artificial-intelligence tailwinds.
Moderna fell 2.2% after early phase-3 data for its cytomegalovirus (CMV) vaccine failed to meet the primary efficacy endpoint of preventing CMV infection among selected female participants.
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