Key Takeaways
- The S&P 500 gained 0.5% on Thursday, Jan. 23, reaching a record close as President Donald Trump pressed for lower oil prices and interest rates.
- Moderna shares extended this week’s gains following a high-profile endorsement of AI’s potential in developing cancer vaccines.
- Shares of Electronic Arts plunged after the video game maker lowered its bookings guidance, citing soft sales from its soccer franchise.
Major U.S. equities indexes moved higher as investors absorbed the latest round of corporate earnings reports and announcements from the new presidential administration.
Speaking remotely at the World Economic Forum meeting in Davos, Switzerland, President Donald Trump pushed for lower oil prices, which he said would enable additional interest rate cuts.
The S&P 500 added 0.5% to notch an all-time closing high. The Dow was up 0.9%, while the Nasdaq rallied back from negative territory in the afternoon to close the session 0.2% higher.
Moderna (MRNA) shares jumped 10.1%, climbing the most of any S&P 500 stock. Thursday’s push higher extended strong gains posted by the biotech firm’s stock this week after Oracle (ORCL) co-founder Larry Ellison discussed the potential of artificial intelligence (AI) in creating cancer vaccines. Moderna also secured additional government funding last week to support its development of a vaccine against the avian influenza virus.
GE Aerospace (GE), the aviation manufacturer that maintained the original stock ticker of the General Electric conglomerate, posted better-than-expected sales and profits for the fourth quarter. The supplier of jet engine components also issued strong profit guidance for 2025, noting its progress on clearing up supply chain issues that weighed on aircraft production last year. GE Aerospace shares soared 6.6%.
Union Pacific (UNP) shares steamed 5.2% higher after the railroad operator topped analysts’ expectations with a year-over-year jump in quarterly earnings per share (EPS). A decline in fuel costs helped drive the strong performance, while the shipping and logistics firm also highlighted increased freight car velocity and momentum in workforce productivity.
Shares of Electronic Arts (EA) suffered the steepest drop in the S&P 500 on Thursday, plummeting 16.7% after the video game maker lowered its net bookings guidance. EA attributed its more muted forecast to underperformance from several games, especially its soccer franchise, where the company expects to post a year-over-year drop in sales in its quarterly earnings report set for release on Feb. 4.
Leidos Holdings (LDOS) secured a contract with the Transportation Security Administration (TSA) for the maintenance of security equipment at airports across the U.S., but shares of the professional services firm dropped 7.6%. The move lower came after the earnings call of fellow government contractor CACI International (CACI), which included a discussion about the potential impact of the Trump administration’s initiatives to rein in government spending. CACI shares fell 9.4%.
Micron Technology (MU) shares slid 4.0% after Korea-based memory chip competitor SK Hynix said during its earnings call that it sees a mixed demand outlook for 2025. Although AI demand should remain strong, SK Hynix is less certain about mobile and PC clients, noting shifts in trade policy and geopolitical conditions. However, U.S.-based Micron could be more likely than its Korean peer to benefit from Trump administration policies, including the recently announced Stargate AI infrastructure project.