NEW YORK (AP) — U.S. stocks are ticking higher Thursday and once again flirting with a record following mixed profit reports from big companies.
The S&P 500 rose 0.4% and was sitting a bit below its all-time high set late last month. The Dow Jones Industrial Average was up 260 points, or 0.5%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.3% higher.
Equinix jumped 11.6% even though the digital infrastructure company’s profit for the latest quarter came up short of analysts’ expectations. It gave financial forecasts for 2026 that topped analysts’, and CEO Adaire Fox-Martin said that “demand for our solutions has never been higher.”
The company’s data centers are helping to power the world’s move into artificial-intelligence technology, even if doubts are rising about whether all the investments will ultimately pay off in the form of higher profits and productivity for customers.
Chip company Nvidia rose less than 1%, but because the AI frenzy has helped it grow to become Wall Street's most valuable stock, it was the strongest single force lifting the S&P 500.
At the same time, some companies are feeling the downsides of that rush into AI.
AppLovin fell 12.8% even though it reported a stronger profit for the latest quarter than analysts expected. Like other software companies, it’s come under pressure from worries that AI-powered competitors will steal customers, and its stock came into the day with a loss of 32.2% for the young year so far.
Cisco Systems sank 7.3% despite likewise topping analysts’ expectations for profit and revenue last quarter. The tech giant indicated that it may make less profit off each $1 in revenue during the current quarter than it did in the past quarter.
Analysts said it could be an indicator of higher prices for computer memory that everyone is having to pay amid a rush driven by AI.
In the bond market, Treasury yields edged lower after a report said slightly more U.S. workers filed for unemployment benefits last week than economists expected.
Still, the number was lower than the prior week’s, which is a signal that the pace of layoffs may be improving. It also followed a surprisingly strong report on the job market from Wednesday, which said the nation’s unemployment rate improved last month.
A strengthening job market could push the Federal Reserve to keep its cuts to interest rates on pause, even if President Donald Trump has been loudly and aggressively calling for lower rates. That’s because lower rates can worsen inflation at the same time that it gives the economy a boost.
It all raises the stakes for Friday’s upcoming report on inflation at the U.S. consumer level. Economists expect it to show inflation eased to 2.4% last month from 2.7% in December.
The yield on the 10-year Treasury slipped to 4.16% from 4.18% late Wednesday.
In stock markets abroad, South Korea’s Kospi rushed 3.1% higher thanks to gains for Samsung Electronics, SK Hynix and other tech stocks. The moves were more modest in other Asian markets.
In Europe, Germany’s DAX returned 1.4%, and France’s CAC 40 rose 1%.
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AP Business Writers Chan Ho-him and Matt Ott contributed.
