Highlights

  • Dow Jones rose 306.78 points, S&P 500 gained 37.73 points, Nasdaq climbed 211.20 points.
  • Russell 2000 hit a record closing high, showing strength in small-cap stocks.
  • Economic data and earnings reports supported investor optimism despite weekly losses.

U.S. stock markets advanced for a second consecutive day on Thursday as investors responded to the rescission of tariff threats by President Donald Trump against European allies and to economic data highlighting American resilience. The Dow Jones Industrial Average rose 306.78 points, or 0.63%, to 49,384.01, the S&P 500 gained 37.73 points, or 0.55%, to 6,913.35, and the Nasdaq Composite added 211.20 points, or 0.91%, to 23,436.02. The small-cap Russell 2000 index climbed 0.8% to a record closing high.

The rebound followed a sharp sell-off on Tuesday triggered by the initial tariff threats. Despite two days of gains, the S&P 500 and Nasdaq are still down 0.4% for the week, while the Dow remains largely unchanged. Investors noted that geopolitical developments continue to create volatility, emphasizing the importance of diversification across sectors and asset classes.

Earnings reports contributed to market movements, with major tech stocks—known as the Magnificent Seven—leading gains. Meta rose 5.7% and Tesla added 4.2%, while Procter & Gamble advanced 2.6% after its quarterly report. Some financial and industrial stocks saw pullbacks, including Huntington Bancshares, Fifth Third Bancorp, Regions Financial, GE Aerospace, Abbott, and McCormick, reflecting mixed performance and cost pressures.

Economic indicators also supported the rally. U.S. consumer spending increased in October and November, the GDP grew 4.4% in Q3 2025, and initial jobless claims rose less than expected, signaling continued economic strength. Trading volume totaled 18.30 billion shares, above the 20-day average of 16.91 billion, suggesting active participation as markets digested geopolitical, economic, and corporate developments.