U.S. Stocks Climb as Robust Earnings Overshadow Trade Tensions

U.S. stocks opened in positive territory Thursday, as upbeat corporate earnings helped restore investor confidence and temporarily diverted attention from the ongoing trade tensions between Washington and Beijing.

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By midmorning in New York, the S&P 500 had risen 0.3%, extending gains from the prior session. The Nasdaq 100, driven largely by tech shares, advanced 0.6%, while the Cboe Volatility Index (VIX) eased to around 20.6, signaling reduced market anxiety.

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“The S&P 500 is managing to notch modest gains this week, but investor sentiment remains cautious as markets await further updates on the tariff front,” noted Daniela Sabin Hathorn, senior market analyst at Capital.com.

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With earnings season now in full swing, attention turned to a string of better-than-expected results from major technology firms. Salesforce Inc. surged more than 7% after the software giant projected a return to double-digit revenue growth in the coming years, reigniting optimism about its long-term outlook.

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Meanwhile, upbeat results from Taiwan Semiconductor Manufacturing Co. (TSMC) boosted sentiment across the AI and semiconductor sector, lifting shares of Nvidia Corp., Micron Technology Inc., and Broadcom Inc.

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“AI and chips continue to drive the market narrative even if some worry it’s becoming a bubble,” said Neil Wilson, investor strategist at Saxo UK. He pointed to TSMC’s strong quarter and the news that CoreWeave Inc. has partnered with Poolside, an AI coding startup that introduced its first product just a year ago.

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Despite the positive tone from earnings, investors remained mindful of the U.S.–China trade conflict, which has fueled several bouts of volatility in recent sessions. On Wednesday, stocks opened strong but faltered midday before rebounding into the close a reflection of how quickly sentiment can shift amid policy uncertainty.

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Adding to investor unease, the ongoing U.S. government shutdown has delayed key economic data releases, making it harder for markets to assess the economy’s underlying health.

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“Markets are bumping up against a natural ceiling until there’s greater clarity on both trade and fiscal policy,” said Michelle Green, chief economist at Board. “The mix of tariff uncertainty and delayed data from the shutdown is contributing to a higher policy risk premium that investors are now factoring into prices.”

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Among individual movers, U.S. Bancorp shares climbed after the lender posted third-quarter revenue that beat Wall Street estimates, offering a rare bright spot for a stock that has lagged behind larger banking peers in recent years.

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In contrast, Hewlett Packard Enterprise Co. (HPE) fell sharply after issuing a disappointing full-year forecast for both profit and cash flow. The guidance came in below consensus expectations, raising questions about near-term demand for its computer hardware and storage products.

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The market’s tone Thursday reflected a push-and-pull dynamic between encouraging corporate results and lingering macroeconomic risks. While stronger earnings especially from tech are bolstering confidence in the resilience of the U.S. economy, uncertainty surrounding tariff policy, government funding, and data transparency continues to cloud the outlook.

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Investors appear cautiously optimistic that the earnings momentum can sustain the rally, at least in the near term. However, analysts warn that volatility could quickly return if trade headlines worsen or if upcoming reports signal a cooling in economic activity.

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“Earnings strength has given investors something solid to focus on,” said Hathorn, “but the market remains sensitive to external shocks particularly those tied to trade or politics.”

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For now, the earnings-driven rebound is helping stocks stay afloat, even as geopolitical uncertainty looms in the background. The performance of major tech and semiconductor names continues to steer sentiment, suggesting that investor confidence remains anchored in corporate fundamentals rather than macro fears.

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As Wall Street navigates the remainder of earnings season, traders will be watching for signs of sustained growth — and whether that can offset the persistent drag from global trade disputes and policy gridlock in Washington.

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