Nasdaq 100: ServiceNow Soars, Alphabet Earnings in Focus as Tech Stocks Drive Gains

Wall Street Turns Higher Midday as Earnings Fuel Tech Rally, Tariff Easing Signals Lift Mood

Stocks pushed higher by midday Thursday, with the S&P 500 and Nasdaq reversing earlier weakness on the back of upbeat earnings and comments suggesting a possible thaw in U.S.-China trade tensions. The Dow also joined the advance, though remains weighed by select industrial laggards. A combination of earnings momentum and easing geopolitical tone helped steady sentiment, at least temporarily.

Which sectors are leading the charge?

Technology and consumer discretionary led the rebound. The information technology sector jumped 2.7%, driven by strength in software and megacaps. Consumer discretionary followed closely behind, lifted by strong earnings from key players. Gains in these sectors offset weakness in consumer staples and airlines, where tariff-related cost pressures weighed on outlooks.

Other sectors traded mixed, with modest support from industrials and communication services. Energy and utilities remained laggards, reflecting cautious positioning in defensives and cyclicals alike.

Which stocks are driving sector moves?

ServiceNow was the session’s standout, rocketing 14.8% after beating estimates and offering an upbeat outlook, setting the tone for tech. Hasbro surged 15.7% after strong demand and better-than-expected margins drove a solid earnings beat. Alphabet climbed 1.8% ahead of its post-close report, contributing to tech’s midday momentum.

On the downside, Procter & Gamble dropped 5.2% after trimming its profit forecast, dragging down consumer staples. Alaska Airlines slid nearly 10% after pulling its financial outlook, echoing broader challenges across the airline space as companies grapple with rising input costs and tariff uncertainties.

Why is trade back in focus?

Markets responded to remarks from Treasury Secretary Scott Bessent, who labeled current U.S.-China tariffs as “unsustainable,” signaling potential for policy moderation. Reports that the administration may reduce some tariffs added fuel to the rebound. Still, traders are wary—China’s demand for full removal of levies suggests negotiations remain complex.

What’s the takeaway for traders?

Today’s gains are driven by strong sector performances in tech and discretionary, coupled with hopes for trade policy relief. However, volatility remains a key theme, with the broader market still down year-to-date. The S&P 500, despite today’s lift, is over 11% below its February high.

With earnings season in full swing and trade headlines still moving markets, traders should remain alert to sudden shifts. Key megacap earnings, any White House announcements, and sector-specific guidance will dictate the next leg of market direction.

More Information in our Economic Calendar.