Wall Street stocks finished higher Thursday, adding to their winning week, as investors sifted through a flood of data on the economy, interest rates, and corporate profits.
The S&P 500 gained 1% after recovering from an early slump, rising to its highest level in six weeks. The Dow Jones Industrial Average recovered from a midafternoon drop to close 0.5% higher, while the Nasdaq composite surged 1.4%, boosted by Tesla and technology stocks.
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The S&P 500 climbed 39.05 points to 3,998.95. The recent increases brought the benchmark index’s winning streak to three days.
The Dow rose 162.06 points to 32,036.90, while the Nasdaq added 161.96 points at 12,059.61. The major indexes are all on pace for a weekly gain.
Smaller company stocks also rose. The Russell 2000 gained 8.74 points, or 0.5%, at 1,836.69.
As with the U.S. Federal Reserve, which is set to raise rates next week for the fourth time this year, the hope is that higher rates will slow the economy enough to beat back high inflation. The risk is that higher rates push down on investment prices, and too-aggressive hikes could cause a recession.
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The two-year Treasury yield, which tends to move with expectations for the Fed, slumped to 3.09% from 3.25% late Wednesday. Forecasts among traders for what the Federal Reserve will do at its meeting next week have tilted toward an increase of 0.75 percentage points and away from a colossal hike of a full percentage point.
The 10-year yield, which influences mortgage rates, fell to 2.90% from 3.03%.
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Tesla climbed 9.8% in the first trading after the electric-vehicle maker reported results for the spring that was better than analysts expected. It was the biggest gainer in the S&P 500.
Steelmaker Nucor jumped 9.1% after its results topped forecasts. Philip Morris International, the tobacco company, rose 4.2% after reporting a stronger profit than expected.
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United Airlines tumbled 10.2% after its profit and revenue fell short of expectations. It also scaled back its plans for growth later this year. American Airlines fell 7.4% after it reported weaker earnings than expected, though its revenue topped forecasts.
AT&T sank 7.6% even though it reported better profit and revenue than Wall Street forecast. It cut its forecast for the amount of cash it will generate this year.
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Stocks of energy companies also fell as the price of U.S. crude oil settled 3.5% lower.
European stocks ended mixed, with several events keeping the continent in the market’s spotlight beyond the European Central Bank’s momentous moves.
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In Asia, Tokyo’s Nikkei 225 rose 0.4% after the Bank of Japan announced no major policy changes after a two-day meeting, as was widely expected. It’s been a holdout in the global rush to raise interest rates.
