US Stocks Rise on Tariff Relief and Positive Economic Data

Market Rally Driven by Tariff Reversal

• 📈 US stocks closed higher for a second consecutive day, with the Dow, S&P 500, and Nasdaq all posting gains.
• 🤝 The rally was fueled by President Donald Trump's decision to rescind tariff threats against European allies, easing geopolitical tensions.

Economic Resilience and Investor Sentiment

• 📊 Strong economic data, including a better-than-expected third-quarter GDP growth rate of 4.4%, underscored American economic resilience.
• 💡 This positive data, coupled with the absence of overly hot inflation figures, boosted investor sentiment after an earlier selloff at the start of the week.
• 💬 Mike Musio of FBB Capital Partners noted that markets prefer cooperation over animosity and appreciate favorable economic indicators.

Stocks on the Move

• 📉 Intel shares plunged over 11% in extended trading after forecasting lower-than-expected quarterly revenue and profit, citing difficulties in meeting demand for its AI server chips.
• 🏥 Medical device maker Abbott saw its shares slide 10%, the largest single-day drop since 2002, due to a weaker-than-anticipated profit forecast.
• 🌶️ McCormick, known for its spices and hot sauce, dropped approximately 8% after projecting weak annual profits for 2026, attributing the forecast to increased costs, including those related to tariffs.