Wall Street Surges to Records Amid Positive Economic Data and Corporate Earnings

Wall Street experienced a record-breaking day on Thursday, fueled by positive economic news and a mix of corporate profit reports from major U.S. companies. The S&P 500 surpassed its previous all-time high, climbing 0.5%. The Dow Jones Industrial Average also rose significantly, gaining 229 points, while the Nasdaq composite reached a new record, increasing by 0.7%.

Trading activity was calmer compared to the previous day, when President Donald Trump's comments about potentially firing the Federal Reserve chair caused market volatility. Such a move could potentially lead to lower interest rates, which are favored by Wall Street, but it could also weaken the Fed's ability to manage inflation.

The technology sector benefited from a strong profit report from Taiwan Semiconductor Manufacturing Co., a major chip maker. The company's stock saw a substantial increase, driven by robust demand from artificial-intelligence and other customers. Other companies involved in AI also saw gains, contributing to the overall positive performance of the S&P 500.

PepsiCo's stock jumped significantly after the company reported revenue and profit that exceeded expectations. United Airlines also saw a rise in its stock price following a stronger-than-expected profit report. The airline noted an increase in customer demand and anticipated less economic uncertainty in the second half of the year. Lucid Group's stock surged after announcing a deal with Uber Technologies for its robotaxi program.

On the other hand, Abbott Laboratories experienced a decline in its stock price despite delivering results that met analysts' expectations. Elevance Health also saw a decrease after reporting weaker-than-expected profits and lowering its profit forecast for the year.

Overall, the S&P 500, Dow Jones Industrial Average, and Nasdaq composite all closed higher, reflecting the positive market sentiment.

In the bond market, Treasury yields showed mixed results following several positive economic reports. One report indicated increased spending at U.S. retailers, while another showed a decrease in unemployment claims. A third report suggested strong growth in manufacturing in the mid-Atlantic region.

These positive economic indicators could influence the Federal Reserve's decision on interest rates. The Fed has maintained steady rates this year and is waiting for more data on the impact of tariffs on the economy and inflation before making any further moves.

The two-year Treasury yield, which reflects expectations for the Fed, increased, while longer-term Treasury yields remained relatively stable. Bond investors had briefly driven longer-term yields higher the previous day due to concerns about the potential firing of the Federal Reserve chair.

Stock markets in Europe and Asia also experienced gains.