The Impressive TimesNew York, Feb 6,2025 – Wall Street closed higher on Wednesday as investors evaluated corporate earnings reports, economic indicators, and global trade developments. The market showed resilience despite ongoing geopolitical uncertainties and mixed sector performances.
The Dow Jones Industrial Average advanced 317.24 points, or 0.71%, to settle at 44,873.28. The S&P 500 added 23.60 points, or 0.39%, closing at 6,061.48, while the Nasdaq Composite gained 38.31 points, or 0.19%, ending at 19,692.33.
Among the S&P 500 sectors, real estate and technology led the rally, climbing 1.59% and 1.57%, respectively. On the downside, communication services and consumer discretionary stocks struggled, declining 2.79% and 1.59%, respectively.
The latest economic reports reflected a slowdown in the services sector. The U.S. Services Purchasing Managers’ Index (PMI) slipped to 52.8% in January, compared to 54% in December. Business activity also softened, with the Business Activity Index falling from 58% to 54.5%, as per the latest Services ISM Report On Business.
However, optimism in the labor market boosted investor sentiment. The ADP Employment Change report revealed that private businesses added 183,000 jobs in January, surpassing the forecast of 153,000. This data fueled gains in the S&P 500, as noted by Vladimir Zernov, an analyst at FX Empire.
Earnings reports from major corporations painted a mixed picture. Advanced Micro Devices (AMD) reported robust revenue growth in its data-center division but missed analyst expectations, leading to a 6.27% drop in its stock.
Walt Disney posted strong gains in its streaming business and box office success with Moana 2. However, its stock declined 2.44% as the company refrained from revising its earnings outlook.
Tech giant Alphabet saw its shares tumble 6.94% after reporting a slowdown in Google Cloud’s revenue growth, marking its weakest performance since 2023. Meanwhile, Uber faced a sharp 7.56% decline as its operating income came in below market expectations, disappointing investors.
As investors continue to assess corporate earnings and economic trends, market volatility is expected. Analysts suggest that strong labor market data and corporate performance will play a crucial role in shaping investor sentiment in the coming weeks. The next major focus remains on the Federal Reserve’s stance on interest rates and upcoming inflation data.
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