U.S. stock markets ended on a positive note as investors analyzed a series of earnings announcements, including those from the well-known Magnificent 7 companies.

The S&P 500 index climbed 0.51%, adding 31.86 points to reach 6,071.17; the Dow Jones Industrial Average increased 0.38%, up 168.61 points to 44,882.13; while the tech-focused Nasdaq saw a rise of 0.23%, gaining 45.72 points to hit 19,678.05. The yield on the 10-year Treasury dropped to 4.526%, marking its lowest point of the year amid signs of slowing U.S. economic growth.

The Magnificent 7 refers to prominent tech giants that dominate major stock indexes and have significantly driven stock market rallies in recent years. These companies are Apple, Microsoft, Amazon, Alphabet (Google), Tesla, Meta (Facebook), and Nvidia.

On Wednesday, Tesla, Microsoft, and Meta posted mixed financial results, but investors found relief in the confirmations from Meta and Microsoft regarding their ongoing investments in artificial intelligence.

On Monday, AI stocks experienced a sharp decline after China’s DeepSeek announced it had developed a competitive AI model for under $6 million, a stark contrast to the higher spending of U.S. firms. This revelation raised concerns that many U.S. companies may slow down their AI expenditures, potentially impacting industries ranging from semiconductors to energy, which support AI development.

Nvidia’s shares, which fell sharply due to its chips being integral to AI technology, continued to decline, even as news emerged about sustained AI investment plans. Bloomberg reported that the Trump administration discussed limiting Nvidia’s chip sales to China.

Apple is set to be the next Magnificent 7 company to release its earnings report following Thursday’s market close.

Highlights from Corporate News

With the Federal Reserve likely pausing its interest rate changes for now, investors are focusing on corporate earnings for market trends. Significant stock movements included:

• Microsoft surpassed earnings estimates for its second fiscal quarter, though its sales forecast for the current quarter fell short. The company noted challenges in its Azure cloud segment while highlighting $13 billion in annual revenue from its AI division. Consequently, its shares dropped by 6%.
• Intel revealed that it exceeded analysts’ earnings expectations for the last quarter of the year but cautioned that the initial quarter of this year might underperform.
• Tesla’s profits fell below expectations, although CEO Elon Musk mentioned that more affordable vehicle models are slated for release this year, predicting growth for their automotive sector. The stock increased nearly 3%.
• Meta achieved record quarterly revenue and surpassed earnings forecasts. Additionally, Meta has agreed to pay $25 million to resolve a lawsuit from Donald Trump regarding his banned social media accounts, with a significant portion set for Trump’s presidential library. Shares rose by 1.5%.
• Mastercard’s stock increased by 3% after the company exceeded earnings estimates, benefiting from cross-border transactions.
• UPS warned it would miss its revenue expectations and significantly reduce volume for its largest client, presumably Amazon. This led to a more than 14% drop in UPS shares.
• Comcast topped Wall Street’s expectations for the final quarter of last year, aided by its broadband services. However, shares fell by 11% following a larger-than-anticipated decline in broadband subscribers and lackluster performance for its Peacock streaming service.
• IBM’s results exceeded analysts’ projections, leading to a 13% increase in shares.
• Southwest Airlines surpassed profit predictions in the last quarter of 2025, driven by high travel demand and better airfare. Its shares closed down by 1.23%.
• Caterpillar reported mixed results, beating earnings expectations but falling short on revenues, with shares dropping by 4.63%.
• Whirlpool’s shares plummeted by 16.5% after presenting a weaker outlook than analysts had expected.
• Cigna saw a 6.7% decline in its stock following a miss in profit estimates for the last quarter of the year.
• Flagstar Financial reported a smaller-than-expected loss for the quarter, resulting in a 15.3% increase in its shares.

Bitcoin Updates

Tesla announced that the value of its bitcoin holdings surged in the last quarter of the year due to a change in accounting practices.

Previously reported at a value of $184 million over the previous four quarters, Tesla’s bitcoin holdings skyrocketed to $1.08 billion during the three months ending in December, as disclosed in the earnings report Wednesday.

This sudden increase can be attributed to a policy adjustment by the Financial Accounting Standards Board, which will require companies to report their digital assets at current market values at the end of each quarter starting in early 2025. The previous method involved reporting at the lowest value recorded during ownership, regardless of any subsequent price increases.

Trump’s proposal for a national bitcoin strategic reserve and recent expectations for relaxed regulations have also contributed to a rise in cryptocurrency values.

Additionally, an Illinois bill aimed at enabling the acceptance of bitcoin donations, allowing the state to hold them for five years before transferring or converting them, further boosted bitcoin’s appeal on Thursday.

At the latest update, bitcoin rose by 1.36% to $105,166.40.

Economic Growth Overview

The U.S. economy expanded at an annualized rate of 2.3% in the last quarter of the year, resulting in a total growth of 2.5% for 2024. This quarterly rate reflects a decrease from 3.1% in the previous quarter, falling slightly below economists’ predictions.

However, economists express no concerns, noting that “the U.S. consumer continues to drive overall economic growth, supported by stable employment and strong wage growth,” according to Nationwide Chief Economist Kathy Bostjancic. “Significant wealth effects from rising equity and home values are boosting spending, particularly among higher-income households.”

The slower growth led to reductions in both 10-year and 30-year Treasury yields to their lowest points of the year. This stunted economic growth could lead to potential rate reductions, even though the Federal Reserve indicated on Wednesday that current rate cuts would be on hold for now.

(This story has been updated with the latest information.)

Medora Lee is a reporter focused on money, markets, and personal finance.