Wall Street Rallies Amid Earnings Surprises and Geopolitical Developments

Wall Street gains momentum as all major U.S. stock indexes close higher, driven by a mix of corporate earnings and easing geopolitical tensions. The announcement of a meeting between President Trump and China's Xi Jinping alleviates trade worries, boosting market sentiment amid varying corporate earnings reports.

Wall Street advanced on Thursday as investors negotiated a complex landscape of corporate earnings and shifting geopolitical concerns. All three major U.S. stock indexes closed higher, with the Nasdaq leading due to tech strength. Notably, the small-cap Russell 2000 emerged as the top performer, gaining momentum after the White House confirmed a forthcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping.

The announcement eased escalating trade tensions between Washington and Beijing, marked by recent retaliatory measures from both sides. Concurrently, Trump announced sanctions on Russian oil companies, diverging sharply in policy to increase pressure on Moscow over its continued war against Ukraine, spiking global oil prices. Market sentiment turned positive, with Horizon Investments' Zachary Hill noting the confirmation as a valuable checkpoint amid volatile trade vibes.

Earnings reports were pivotal, showcasing strong results that buoyed market fundamentals. While Tesla shares rebounded despite a profit miss, IBM experienced a drop due to slowdown in its cloud software segment. Meanwhile, energy firms reaped gains from rising crude prices following Trump's sanctions. Overall, investor optimism was reflected in a 9.9% expected growth in third-quarter earnings for the S&P 500, according to analysts.

(With inputs from agencies.)