Wall Street experienced a significant upswing as major indices closed higher following President Donald Trump's decision to delay new reciprocal tariffs. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all posted gains during Thursday's regular trading session. GameStop shares notably jumped 7% in extended trading, while Airbnb shares soared by 12%.
The S&P 500 added 1.04% during the day's session, reflecting investor optimism. Meanwhile, the Nasdaq Composite showed a robust increase of 1.5%, bringing its week-to-date gain to 2.2%. The Dow Jones Industrial Average advanced 0.77%, reaching session highs after Trump signed a presidential memorandum on reciprocal tariffs.
In the after-hours market, GameStop shares surged as the company considered investing in bitcoin and other cryptocurrencies. This potential strategic move has piqued investor interest, contributing to the stock's rise. Meanwhile, Coinbase shares rose nearly 1% after reporting fourth-quarter earnings that exceeded expectations.
In related developments, economic indicators pointed towards a softer inflation outlook. January's producer price index and Wednesday's consumer price index reports suggested a subdued reading for the personal consumption expenditures (PCE) price index. This index is the Federal Reserve's preferred measure of inflation and is due later this month.
S&P 500 futures showed little movement Thursday night, reflecting a cautious market sentiment. Shortly after 6 p.m. ET, Dow futures were marginally higher, while S&P 500 futures were fractionally lower. Market analysts anticipate that Friday could be pivotal as investors digest the latest developments and assess their implications.
"Friday is going to be one of those days where people are going to try to figure out what this all means." – Mark Malek, chief investment officer at Siebert.
President Trump's decision to hold off on new tariffs has provided some relief to the markets, which have been sensitive to trade tensions. This move aligns with recent economic data suggesting a stable inflation environment, factors that could influence future Federal Reserve policy.
Airbnb's impressive 12% gain highlighted a positive response to its performance and outlook. As travel demand slowly recovers, investors remain optimistic about the company's potential for growth.