Stock Market Gains Amid Consumer Spending Data
Major UPS Stock Plunges indexes advanced on Thursday following a report from the Bureau of Economic Analysis, which revealed that consumer spending remained robust despite a slight slowdown in gross domestic product (GDP) growth. The S&P 500 gained 0.5%, the Dow Jones Industrial Average climbed 0.4%, and the tech-heavy Nasdaq inched 0.3% higher by the end of the trading session.
Leading the gains in the S&P 500, Vistra Corp. (VST) surged 13.6%, making it the top-performing stock of the day. The energy producer rebounded after recent losses triggered by the emergence of a cost-effective artificial intelligence (AI) model from Chinese startup DeepSeek, which had cast a shadow over AI-related stocks. However, renewed optimism about Vistra’s role in supplying power to AI data centers fueled its dramatic rise, contributing to its remarkable 330% surge over the past year.
IBM (IBM) shares also experienced a significant boost, climbing 13.0% after the company surpassed analysts’ earnings and revenue forecasts for the fourth quarter. The tech giant attributed its strong performance to rising demand for AI technology and continued momentum in its Red Hat Linux operating system. IBM’s software business saw notable year-over-year growth, further bolstering investor confidence.
Las Vegas Sands and Tech Giants See Gains
Casino operator Las Vegas Sands (LVS) witnessed an 11.1% jump in its stock price following the release of its quarterly earnings report. Although lower-than-expected profits, partly due to weakness in its Macao operations, weighed on investor sentiment, fourth-quarter revenue exceeded expectations. The Marina Bay Sands resort in Singapore performed strongly, contributing to the revenue beat. Additionally, the company repurchased $450 million worth of shares during the period, further boosting investor confidence.
Meanwhile, UPS Stock Plunges tech and software companies faced mixed results. ServiceNow (NOW) saw its shares drop 11.4% despite posting better-than-expected adjusted earnings and meeting sales forecasts. The decline was driven by weaker-than-expected subscription revenue growth, a key performance metric for the firm. Looking ahead, ServiceNow projected a slight deceleration in this area for the first quarter, leading to a sharp reaction from investors.
Comcast (CMCSA) also struggled, with its shares sliding 11.0% after reporting a larger-than-anticipated decline in broadband customers. Despite this setback, the media giant beat profit and revenue estimates, posting record earnings per share and benefiting from growth in its Peacock streaming service.
UPS Stock Plummets as Amazon Partnership Winds Down
United Parcel Service (UPS) experienced the steepest decline among S&P 500 stocks on Thursday, with shares plunging 14.1%. The shipping giant reported lower-than-expected fourth-quarter sales and profits, disappointing investors. Additionally, UPS Stock Plunges announced a major shift in its business strategy, revealing an agreement to cut its delivery volume for Amazon (AMZN) by 50% by the end of 2025. While Amazon remains UPS’s largest customer, accounting for nearly 12% of its revenue in 2024, the company stated that reducing its reliance on the e-commerce giant would allow it to focus on more profitable projects, ultimately improving margins.
The broader market’s gains reflected resilience in consumer spending despite economic headwinds. However, significant declines in key stocks such as UPS, ServiceNow, and Comcast underscored ongoing volatility and sector-specific challenges.
