Vincent Napolitano, a trader, is seen at work on the floor of the New York Stock Exchange on Friday, May 9, 2025. (AP Photo/Richard Drew)
Wall Street closed higher on Thursday, with both the S&P 500 and Nasdaq Composite touching new records, thanks in large part to Delta Air Lines. The airline’s strong earnings report gave investors a reason to cheer, pushing the broader market upward.
Delta’s stock soared 12% after the company beat revenue and profit expectations and shared a stronger-than-expected outlook for the rest of the summer travel season. This upbeat news sent other airline stocks flying—United Airlines jumped 14.3%, American Airlines climbed 12.7%, JetBlue gained 7.8%, and Southwest rose 8.1%.
Earlier in the year, major U.S. airlines had scaled back their forecasts due to economic uncertainties and travel slowdowns, especially with tariff announcements by President Donald Trump. But now, Delta’s report suggests confidence is returning, and the outlook is improving.
Michael Antonelli, a market strategist at Baird, noted that companies are finally getting a clearer view of what to expect from ongoing tariff policies. While uncertainty remains, businesses are adjusting better to the changing trade environment.
The S&P 500 inched up 0.3%, surpassing its previous all-time high set last week, while the Nasdaq added 0.1%, hitting a new record for the second day in a row. The Dow Jones Industrial Average rose 0.4%.
Beyond airlines, several sectors showed strength. Financial and consumer-focused companies posted solid gains—JPMorgan and McDonald’s both rose by 1.8%. However, tech and communication services lagged. Autodesk’s shares dropped 6.9%, and Netflix closed 2.9% lower.
Among standout movers, WK Kellogg’s shares skyrocketed by 30.6% after Italian chocolate giant Ferrero agreed to buy the cereal brand in a deal worth roughly $3.1 billion. The deal includes the rights to manufacture and sell WK Kellogg’s products across the U.S., Canada, and the Caribbean.
In the industrial sector, Freeport-McMoRan saw its stock climb 3.6% after President Trump announced a 50% tariff on copper imports starting August 1. That announcement pushed copper prices up by nearly 2% to $5.59 per pound.
Some companies had a rough day. Conagra Brands, known for Slim Jim and Swiss Miss, slipped 4.4% after missing Wall Street expectations and cutting its earnings outlook due to rising costs linked to tariffs. Helen of Troy fell sharply by 22.7% following disappointing results and uncertainty over the economic and trade environment. The company also declined to give a forecast for fiscal 2026.
Earnings season is heating up, with big banks like JPMorgan Chase, Wells Fargo, and Citigroup set to release their results next week. Analysts expect S&P 500 companies to show a modest 5% profit increase in Q2—the slowest growth since late 2023.
In broader economic news, jobless claims dropped last week, a sign that layoffs remain low. Bond markets were mostly steady, with the 10-year Treasury yield unchanged at 4.34%.
Outside the U.S., markets showed mixed reactions. European stocks had a choppy session, and Japan’s Nikkei 225 dropped 0.4% due to exporter concerns and currency effects.
