The U.S. market has presented a mixed picture through earnings reports from major companies, while concerns over prolonged artificial intelligence investment and geopolitical risks are shaping market sentiment.
A series of strong earnings reports has been offset by lingering concerns over how long AI-related spending will continue. SpaceX and AMD reportedly posted sales above expectations, but investor reaction was limited.
Eli Lilly, Merck, ConocoPhillips, Caterpillar and Disney were generally viewed as having solid earnings, while some believe that the earnings growth rate for S&P 500 companies is also advancing this quarter.
AMD's stock price fell approximately 7%, while SanDisk and Western Digital also came under selling pressure after reporting their earnings. SpaceX's stock price fell approximately 14% following its earnings release, but turned higher on Thursday. Developments following the end of its first lock-up period are expected to draw close attention.
Earnings trends at major energy-sector companies, intermediate signals from the crude oil market and commitments concerning increased production are also key areas of focus, together with foreign exchange rates, the employment market and the Federal Reserve's outlook, in shaping the market's overall direction.