NEW YORK (AP) 鈥� Wall Street鈥檚 rally kept rolling Thursday as better-than-expected profits for U.S. companies piled up, though because of uncertainty created by trade war.
The S&P 500 charged 2% higher and pulled within 11% of its record set earlier this year. The Dow Jones Industrial Average rose 486 points, or 1.2%, while the Nasdaq composite jumped 2.7%.
Tech stocks helped lead the way, including ServiceNow after the AI platform company delivered a stronger profit for the start of 2025 than analysts expected. The company, whose AI agents help clients manage their customers, saw its stock jump 15.5% after it also gave a forecasted range for upcoming subscription revenue that beat some analysts鈥� expectations.
Southwest Airlines likewise reported stronger results than expected for the first three months of the year. But its stock flipped between gains and losses through the morning after it also became the to say the outlook for the economy looks so cloudy that it鈥檚 .
CEO Bob Jordan said the company is 鈥渃ontrolling what we can control,鈥� and it鈥檚 cutting how much flying it will do in the second half of the year. Southwest鈥檚 stock eventually pulled higher in afternoon trading and finished up 3.7%.
Rival American Airlines, meanwhile, pulled its financial forecasts for the full year and said it plans to provide an update when 鈥渢he economic outlook becomes clearer.鈥� Its stock rose 3.1% after it also topped profit expectations for the latest quarter.
Companies across industries have been talking about how difficult it is to give financial forecasts for the upcoming year, as Wall Street typically expects them to do, because of the on-again-off-again rollout of Trump鈥檚 tariffs.
U.S. stocks on hopes that Trump was softening his approach and his , which had earlier shaken markets. But China, the world鈥檚 second-largest economy, on Thursday with the United States over tariffs, saying that any suggestion of progress was as groundless as 鈥渢rying to catch the wind.鈥�
Calling Trump鈥檚 policy announcements 鈥渉eadline turbulence,鈥� Tan Jing Yi of the Asia & Oceania Treasury Department at Mizuho Bank warned that global economies could be hurt in the long run, adding: 鈥淪entiments swing from hopes of intense relief to inflicted economic gloom.鈥�
This week on fears about the trade war, and it鈥檚 been a microcosm of the market鈥檚 severe swings in recent weeks as investors struggle with how to react to conditions that sometimes change by the hour. The only certainty is that the market will likely keep swinging until more clarity arrives on tariffs, which many investors expect would cause a recession unless they鈥檙e rolled back.
鈥淚t鈥檚 an unhealthy market backdrop right now, and we鈥檙e trying not to react too much,鈥� said John Belton, a portfolio manager at Gabelli Funds.
that economists say tariffs would bring, while the urged countries to move 鈥渟wiftly鈥欌�� to resolve their trade disputes that threaten global economic growth.
In the meantime, many U.S. companies are continuing to report stronger profit than analysts expected for the start of 2025, while offering caution and uncertainty about the year ahead.
Toy company Hasbro was a winner and jumped 14.6% after reporting better profit and revenue for the latest quarter than analysts expected. It cited strong growth for its Magic: The Gathering game, among other products.
Texas Instruments rallied 6.6% after the semiconductor company likewise reported a stronger profit than expected.
They helped offset a 3.7% drop for Procter & Gamble, which fell even though the company behind Olay, Tide and Pampers reported stronger results for the latest quarter than expected. Its revenue came in below expectations, and it also cut its forecast for profit growth this fiscal year.
Procter & Gamble said it鈥檚 expecting a $200 million hit to its earnings this fiscal year because of higher costs for commodities.
At , CEO Ramon Laguarta said his company expects 鈥渕ore volatility and uncertainty鈥� and that 鈥渃onsumer conditions in many markets remain subdued and similarly have an uncertain outlook.鈥�
His company鈥檚 stock fell 4.9% after the beverage and snack maker cuts its forecast for an underlying measure of profit over 2025, citing increased costs from tariffs and subdued conditions for customers. A 25% tariff on for cans is among those hitting PepsiCo and other beverage makers.
All told, the S&P 500 rose 108.91 points to 5,484.77. The Dow Jones Industrial Average added 486.83 to 40,093.40, and the Nasdaq composite jumped 457.99 to 17,166.04.
In the bond market, Treasury yields continued to ease following their disconcerting run higher earlier this month. Yields usually fall when fear is dominating markets, but their surprising earlier rise stirred fears that Trump鈥檚 trade war was degrading the U.S. bond market鈥檚 status as one of the world鈥檚 safest places to keep cash.
The yield on the 10-year Treasury fell to 4.30% from 4.40% late Wednesday, in part on expectations that the Federal Reserve could cut interest rates later this year to soften the economic blow that may come from tariffs.
Yields sank after a report showed last week than economists expected. A separate report said sales of previously occupied homes in March.
In stock markets abroad, indexes were mixed amid modest moves across much of Europe and Asia.
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AP Business Writers Yuri Kageyama and Matt Ott contributed.
Stan Choe, The Associated Press
