Transportation stocks soar on airline optimism
U.S. markets climbed Thursday, buoyed by strong guidance from Delta Air Lines and tempered reactions to President Trump’s latest round of tariff threats. The Dow Jones Transportation Index jumped over 3%, reaching its highest point since February, led by double-digit gains in airline stocks.
Delta surged 12.5% after projecting third-quarter and full-year profits above expectations. United Airlines rose 16% and American Airlines advanced 14%, reflecting broad investor optimism across the sector. The transportation rally signaled renewed confidence in economic growth despite looming trade uncertainties.
Jobless claims support risk appetite
Initial jobless claims came in lower than anticipated, at 227,000 versus a forecast of 235,000, marking a seven-week low. While volatility around the July Fourth holiday may have influenced the number, investors viewed it as a sign of continued labor market resilience. “Collectively, Delta’s outlook and tame jobless claims reignited risk appetite,” said Mark Luschini of Janney Montgomery Scott.
By mid-afternoon, the Dow gained 0.65% to 44,749.19, the S&P 500 rose 0.39% to 6,287.71, and the Nasdaq edged up 0.17% to 20,646.35. Nine of the eleven major S&P sectors posted gains, with communication services and technology the only laggards.
Tech mixed as Nvidia rebounds
The Nasdaq’s performance was muted by declines in Meta, Netflix, and Microsoft, even as Nvidia regained its $4 trillion market valuation. Tesla climbed 3% following the announcement of a shareholder meeting scheduled for November, a move welcomed by investor groups pressing for greater corporate transparency.
Trump’s latest tariff threats, including a 50% levy on copper imports and potential duties on Brazilian goods, failed to rattle investors. Analysts attributed the subdued reaction to a belief that inflationary impacts will be limited or delayed. Fed minutes released Wednesday suggested policymakers view tariff effects as “temporary or modest,” and rate cuts later this year remain likely.
Stocks to watch: WK Kellogg jumps, Conagra sinks
WK Kellogg surged 30.6% following reports of a $3.1 billion buyout by Ferrero, the maker of Nutella. In contrast, Conagra Brands slid 3% after citing rising tariff-related input costs, particularly for metals and China-sourced ingredients, which hurt its earnings forecast.
Overall, advancing stocks outpaced decliners by a 2.19-to-1 margin on the NYSE and 1.54-to-1 on the Nasdaq. The S&P 500 saw 28 new 52-week highs, while the Nasdaq Composite recorded 84.
