Stock markets rise to new records thanks to the one-two punch of airlines and Big Tech
- The S&P 500 and Nasdaq set a new record on Thursday as airlines and tech led equities higher.
After a shaky start to the week, stocks pushed deeper into record territory Thursday with the airline sector and Big Tech continuing to lead the markets higher.
The S&P 500 gained 0.27% Thursday to close at a new record; the tech-heavy Nasdaq closed 0.09% higher and the Dow rose 0.43%.
Delta Air Lines, which had pulled profit guidance earlier this year on economic instability, beat analysts’ profit expectations and released a solid outlook for the rest of the year. The stock surged 13% and pulled the rest of the airline sector with it.
WK Kellogg, the maker of Froot Loops and other popular breakfast cereals, rose 30% after Nutella maker Ferrero announced a deal to buy the company.
Chipmaker Nvidia gained 0.72% a day after the investor favorite reached a $4 trillion market valuation.
Most of the sectors in the S&P 500 were up, with banks and consumer-focused companies accounting for much of the gains. JPMorgan rose 1.4% and McDonald’s was 2.5% higher, the AP reported.
No trade deals, no problem
Wednesday had marked the deadline for the U.S. to finish trade deals with 90 trading partners or risk the reinstatement of punitive tariffs. However, with only two deals inked since Liberation Day—one with Vietnam and one with the United Kingdom—President Donald Trump had pushed the deadline back to Aug. 1. On Tuesday, Trump announced he would send letters to 14 countries spelling out the U.S.’ tariff position, a method he said was “a more powerful way” than individual negotiations.
The news sent momentary jitters through equity markets, but stocks had shrugged off all uncertainty by midweek to march higher still.
“The market has demonstrated a remarkable ability to hear what it wants to hear, see what it wants to see, and nothing is going to change its mind,” Eric Winograd, chief U.S. economist at AllianceBernstein, told Fortune last week.
In economic news, the Labor Department reported Thursday that initial applications for jobless claims fell last week—another sign of good news after a surprisingly strong month for job creation in June.
This story was originally featured on Fortune.com