The S&P 500 and Nasdaq indexes reached all-time highs on Thursday after the publication of solid results from Alphabet, Google’s parent company, which encouraged expectations for other stocks linked to artificial intelligence, according to preliminary market data. Alphabet shares rose as the search giant’s results supported investor confidence that the company’s strong investment to lead the development of AI is beginning to show positive results.
The shares of Microsoft, Nvidia and Amazon, prominent companies in the technology sector with a strong presence in the artificial intelligence market, also rose. In addition, the recent trade agreement between the United States and Japan, added to signs of progress in negotiations with the European Union, contributed to the widespread advance of Wall Street.
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Sam Stovall, chief investment strategist at CFRA Research, stated that “investors feel optimistic about trade negotiations, the economy, the trend of inflation, and second-quarter earnings reports, which have been better than expected.”
In contrast,
Tesla‘s shares suffered a sharp decline after its CEO, Elon Musk, warned of “a few difficult quarters” because the US government cuts aid to electric vehicle manufacturers. So far in 2025, Tesla has lost about 25% of its value.
For its part, IBM retreated after reporting negative results for the second quarter, mainly affected by low sales in its main software division.
According to preliminary figures, the S&P 500 gained 5.53 points, or 0.08%, to 6,363.87 points. The Nasdaq Composite rose 38.85 points, or 0.19%, to 21,057.96 points, while the Dow Jones Industrial Average fell 312.08 points, or 0.69%, and closed at 44,698.21 points.
European stocks close higher
European markets closed higher on Thursday after the
European Central Bank held interest rates steady, as investors celebrated strong earnings from major banks and easing trade tensions with the United States.
The pan-European STOXX 600 index ended the session up 0.2%, after earlier touching a six-week high.
Stocks retreated from highs as investors recalibrated their expectations about future monetary easing after ECB President Christine Lagarde said that before deciding on further interest rate cuts, policymakers were seeking clarity on trade and its impact on the economy.
Interest rate futures markets reflected this shift in opinion, with traders scaling back bets on a rate cut in September. The yield on the German 2-year bond DE2YT=RR also jumped.
“At 2%, rates are held in the middle of the ECB’s 1.5% to 2.5% neutral band. However, uncertainty is very high and, if trade tensions intensify, further easing may be needed later in the year to help maintain business and consumer confidence,” said Marchel Alexandrovich, an economist at Saltmarsh Economics.
The central bank’s caution comes at a time when eurozone inflation has returned to the 2% target set by the ECB, along with signs of economic resilience.
Nevertheless, the mood remained upbeat thanks to expectations of a trade agreement between the United States and the EU, after the European Commission affirmed that it was within reach.
