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Indexes gain as investors weigh key corporate earnings

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Upbeat comments from Tesla help to offset a disappointing forecast from Microsoft.

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All the S&P 500 sectors were higher at the close in New York on Thursday, except for technology, which fell 0.8%. (AP pic)

NEW YORK:
All three major US stock indexes rose on Thursday as investors digested a stack of key earnings reports, with upbeat comments from Tesla helping to offset a disappointing forecast from Microsoft.

All the S&P 500 sectors were higher, except for technology, which fell 0.8%.

Tesla shares rose 3.3% and were among the biggest boosts to the S&P 500. CEO Elon Musk vowed to launch long-awaited cheaper models in the first half of 2025 and start testing an autonomous ride-hailing service in June. The comments overshadowed its quarterly results that fell short of expectations.

Also helping the S&P 500, Meta shares gained 1.4% after the company beat Wall Street’s fourth-quarter revenue estimates but said current-quarter sales may not meet forecasts. IBM shares jumped 12.2% after the company surpassed fourth-quarter profit expectations.

Shares of Microsoft fell 6.1% after the company forecast disappointing growth in its cloud computing business.

Investors also took in comments from the CEOs of Meta and Microsoft defending their heavy investments in artificial intelligence, days after Chinese startup DeepSeek unveiled a breakthrough in cheap AI models that rattled Wall Street and triggered a sell-off in AI-linked stocks.

“It’s the push and pull of continued strong earnings against a backdrop of a less accommodating Federal Reserve and persistent inflation,” said Oliver Pursche, senior vice president, adviser for Wealthspire Advisors in Westport, Connecticut.

The Dow Jones Industrial Average rose 226.94 points, or 0.51%, to 44,942.34. The S&P 500 climbed 30.93 points, or 0.51%, to 6,070.24 and the Nasdaq Composite added 42.49 points, or 0.22%, at 19,674.72.

The Fed kept interest rates unchanged on Wednesday and removed language acknowledging easing inflation from its latest policy meeting statement.

The majority of S&P 500 companies that have reported fourth-quarter results have beaten analysts’ expectations, LSEG data showed.

United Parcel Service lost 14.3% and weighed on the Dow Jones Transportation Average after the company forecast 2025 revenue below expectations.

Results from Apple and Intel are due after the closing bell.

Advancing issues outnumbered decliners by a 4.66-to-1 ratio on the NYSE. There were 217 new highs and 42 new lows on the NYSE.

On the Nasdaq, 2,990 stocks rose and 1,315 fell as advancing issues outnumbered decliners by a 2.27-to-1 ratio.

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