Stock market today: Nasdaq surges as Nvidia, Amazon lead tech rally ahead of Fed decision
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US stocks extended gains on Thursday as investors continued to digest Donald Trump's electoral victory and awaited the Federal Reserve's policy decision due this afternoon.
The S&P 500 (^GSPC) rose roughly 0.6%, while the tech-heavy Nasdaq Composite (^IXIC) moved up than 1.3% as shares of chip heavyweight Nvidia (NVDA) and e-commerce giant Amazon (AMZN) rose to new highs.
Meanwhile, the Dow Jones Industrial Average (^DJI) hovered near the flat line, on the heels of a 1,500-point gain that marked the blue-chip gauge's best day since 2022.
Spirits still appeared buoyant after Trump's presidential election win, which sent all three major stock gauges soaring to fresh record highs on Wednesday. His plans for corporate tax cuts and deregulation have fueled optimism for a boost to the economy that will feed into stocks.
The Fed's interest rate decision later Thursday could be the next catalyst that moves markets.
Investors see a 25 basis point rate cut as pretty much a sure thing at the end of policymakers' two-day meeting. The focus is on what Chair Jerome Powell might reveal about the future path of policy, especially as Trump's return could mean rates stay higher for longer.
On the corporate front, Arm Holdings (ARM) stock fell as the chip designer's revenue forecast disappointed Wall Street's hopes for stronger, AI-powered growth. By contrast, peer Qualcomm's (QCOM) shares jumped more than 4% after its sales and profit outlooks topped estimates.
Meanwhile, Trump Media & Technology Group stock (DJT) continued to pull back from the big spike that followed the election result. Shares in the company — the home of Trump's social media platform, Truth Social — fell by double digits during the session.
LIVE 9 updatesNetflix stock hits all-time highs
Netflix (NFLX) stock has surged to another all-time high as tech rallies after Donald Trump clinched victory over Kamala Harris in the presidential election.
The stock is currently trading above $790 a share and has climbed more than 60% since the start of the year, with 10% gains over the past month — far outpacing broader markets.
The moves higher extend beyond the recent Trump-fueled rally, however, as Netflix stands out among a list of battered media sector names.
The streamer has added more than 50 million paying subscribers since launching its password crackdown in May 2023. Its projected full-year operating margins are expected to hit 27%, with management hinting the company has the potential to eventually secure margins similar to broadcast networks, which historically have been in the range of 40% to 50%.
And in the first three quarters of 2024, Netflix pulled in roughly $6.9 billion in net income. Its competitors aren't even close.
Disney (DIS) and Paramount Global (PARA) just reported their first quarter of profits in their respective streaming businesses earlier this summer. A shift for the industry, yes, but not a cure-all for the problems that have plagued traditional media, with Comcast (CMCSA) the most recent company to weigh spinning off its cable networks.
"Netflix is clearly running away with the ball and the media-based streaming companies are struggling to even get on the field," Barton Crockett, managing director at Rosenblatt Securities, previously told Yahoo Finance.
Lyft stock soars on earnings beat
Lyft (LYFT) shares soared more than 25% after its third quarter earnings beat expectations.
Lyft’s adjusted earnings per share of $0.29 were ahead of the $0.20 expected, while quarterly revenue of $1.5 billion beat Wall Street’s estimate of $1.4 billion, according to Bloomberg consensus estimates. Rides for the period ended Sept. 30 totaled 217 million, above the 213 million expected.
On Wednesday, Lyft announced partnerships with autonomous vehicle companies as it looks to secure a foothold in the burgeoning market, adding driverless cabs to its network in Atlanta in 2025. Wall Street analysts in notes to investors Thursday gave kudos to Lyft’s expansions beyond ride-hailing.
“LYFT is no longer a ride-hailing pure-play with it now embarking on partnerships in food delivery and AVs,” said RBC Capital Markets analyst and Lyft bull Brad Erikson. Lyft recently unveiled a partnership with DoorDash (DASH).
Still, analysts overall maintained Neutral ratings on the stock, with Wedbush analyst Scott Devitt writing, “[W]e wait for clear evidence of a more sustainable growth trajectory for the business.”
Lyft shares are up 74% from last year but far below highs in the $60 range in 2021.
Bitcoin hovers near $76,000 per token as risk-on rally extends
Bitcoin (BTC-USD) briefly touched new highs just north of $76,000, extending gains from Wednesday's monster rally following Donald Trump's White House win.
The cryptocurrency jumped to new records on Wednesday and crypto-related stocks also rose following the presidential election results. Over the summer Trump promised to make the US the crypto capital of the world and form a 'strategic bitcoin stockpile.'
Nvidia, Amazon extend gains to hover at record highs
Shares of AI chip heavyweight Nvidia (NVDA) and e-commerce giant Amazon (AMZN) each gained more than 1% on Thursday, extending gains from Wednesday's monster rally following Donald Trump's White House victory.
Both stocks closed at all-time record highs on Wednesday.
Earlier this week Nvidia surpassed iPhone maker Apple (AAPL) as the largest company in the world. The artificial intelligence chipmaker is expected to join the Dow Jones Industrial Average (^DJI) on Friday, replacing semiconductor giant Intel (INTC).
Meanwhile, Amazon stock has been in an upward trend after the company posted a stronger-than-expected quarterly result last week. On Thursday, shares were trading just above $210 each.
Earnings roundup: Moderna, WBD stocks surge on Q3 results, Hershey drops
Another batch of companies reported earnings Thursday morning.
Moderna (MRNA) jumped 5% at the market open as its earnings beat expectations partly thanks to better-than-anticipated COVID vaccine sales. Warner Bros. (WBD) jumped 10% thanks to streaming growth as Max subscribers soared. Meanwhile, Hershey (HSY) fell more than 1% after sinking as much as 3% premarket as high cocoa prices cut into its sales outlook for the year.
Here’s a closer look at how the companies performed:
Hershey: Adjusted earnings per share of $2.34 vs. $2.56 per share expected, revenue of $2.99 billion vs. $3.07 billion expected
Moderna: Earnings per share of $0.03 vs. a loss of $1.98 per share expected, revenue of $1.86 billion vs. $1.25 billion expected
Warner Bros.: Adjusted earnings per share of $0.05 vs. a loss of $0.12 per share expected, revenue of $9.62 billion vs. $9.81 billion expected
Meanwhile, energy companies traded flattish after showing mixed results as natural disasters impacted some of their businesses. Duke Energy (DUK) saw its profits hit by hurricane costs, while Pacific Gas & Electric (PCG) missed on revenue just as it shut off power in Northern California amid fire risks. Nuclear power provider Vistra soared 11% after an earnings beat as it recovers from earlier losses.
Stocks extend gains after Trump rally and ahead of Fed decision
Stocks extended their gains on Thursday following a monster rally on the heels of Donald Trump's White House victory. The move higher in stocks comes ahead of the Federal Reserve's interest rate decision.
The Dow Jones Industrial Average (^DJI) inched up 0.1% while the S&P 500 (^GSPC) rose roughly 0.3%. The tech-heavy Nasdaq Composite (^IXIC) moved up 0.5% after all three major averages closed at record highs on Wednesday.
As Yahoo Finance's Jennifer Schonberger reports, the Federal Reserve is expected to cut interest rates by 25 basis points and avoid any unnecessary surprises after the election of Trump as the next president.
Meanwhile, parts of the "Trump Trade" showed some signs of unwinding on Thursday as Trump Media & Technology Group stock (DJT) sank by double digits, reversing the gains it enjoyed in the prior session.
DJT stock sinks, reversing election-fueled gains
Trump Media & Technology Group stock (DJT) sank by double digits in premarket trading on Thursday, reversing the gains it enjoyed on Wednesday as Donald Trump clinched victory over Kamala Harris in the presidential election.
As Yahoo Finance's Allie Canal reports, shares in the company — the home of Trump's social media platform, Truth Social — have been on a wild ride over the past week, with the up-and-down moves mostly tied to Trump's chances of reclaiming the White House.
The stock is down about 10% over the past five days, although shares have rallied nearly 120% in the past month.
Read more here.
Weekly initial jobless claims jump to 221,000
Initial jobless claims jumped to 221,000 last week, an increase of 3,000 from the previous week's revised level, according to data released by the US Department of Labor on Thursday morning.
The previous week's level was revised up by 2,000 from 216,000 to 218,000.
Meanwhile, continuing claims came in at 1,892,000, an increase of 39,000 from the previous week's revised level.
Good morning. Here's what's happening today.
Here's a look at the big economic and market themes happening today as Wall Street adjusts to Donald Trump's coming return to the White House. The Federal Reserve is expected to cut interest rates by 25 basis points today, aiming for stability and avoiding surprises following Trump's victory in the election.
Economic data: Fed interest rate decision; Initial jobless claims, (week ending Nov. 2)
Earnings: Affirm (AFRM), Airbnb (ABNB), Block (SQ), Datadog (DDOG), DraftKings (DKNG), Halliburton (HAL), Hershey (HSY), Moderna (MRNA), Pinterest (PINS), Rivian (RIVN), The Trade Desk (TTD)
Here are some of the biggest stories you may have missed overnight and early this morning:
Fed likely to cut rates as Powell seeks stability after Trump win
US bond yield spike sends warning to 'king of debt' Trump
How Elon Musk's latest government bet paid off
YF columnist Rick Newman: Americans want to return to a place that no longer exists
DJT short sellers get hammered by a $420M loss
How Elon Musk's latest government bet paid off
