U.S. markets shed some jitters and ended higher on Thursday as investors digested this week’s Federal Reserve decision and waited for April’s jobs report.
The Dow and S&P each rose nearly 1%, while the tech-heavy Nasdaq rose 1.5%.
The day’s gains were led by a basket of tech and tech-related stocks. Shares in online used car retailer Carvana, known for its car vending machines, rose 34% after the company missed profit estimates. The company reported total revenue of $3 billion, a significant 17% increase year-over-year.
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It was just two years ago that after a pandemic-era sales surge, Carvana’s stock price was close to zero and it looked like it was on the verge of bankruptcy. Since then, a major reorganization that prioritized profitability over growth is now paying off.
Semiconductor maker Qualcomm also rose 10% as sales and profit growth beat expectations. Also, online furniture retailer Wayfair ended the day up 16% after reporting a narrower-than-expected loss, thanks largely to significant headcount cuts. The retailer remains unprofitable, but its customer base is growing.
Among the day’s biggest losers were Etsy, which fell 15% after another dismal earnings report, and DoorDash, which fell 10% after issuing a weaker-than-expected outlook for the second quarter. Peloton also fell after announcing another round of layoffs and the resignation of its CEO after just two years at the helm.
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Apple’s financial results were scheduled to be released after the bell on Thursday. The iPhone maker has struggled this year, with its stock falling 7% as China’s economy slows. Investors will be looking for more clarity on how Apple is doing in China, where competition in the smartphone space is intensifying. The company could also give hints about the next version of the iPhone, due out later this year, which is expected to be a major upgrade to the core product.
Looking forward to Friday, April’s unemployment rate data will be the key economic indicator. The labor market is expected to remain resilient despite rising interest rates, with economists expecting to add around 250,000 jobs.
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Newsweek is committed to challenging conventional wisdom, finding common ground and finding connections.
