Tesla's Promise of Affordable EVs Lifts U.S. Stocks Amid Earnings Reports

U.S. stocks climbed on Thursday, driven by strong earnings reports. Tesla's promise to deliver affordable models enhanced market optimism, despite Microsoft's cloud forecast disappointment. Tariff tensions from President Trump loomed, while AI investments faced scrutiny. Overall, technology shares influenced significant market movement.

U.S. stock markets experienced gains on Thursday, buoyed by a series of significant earnings reports, with Tesla playing a pivotal role in driving optimism despite mixed news from other major companies.

President Trump's reiteration of a 25% import tariff plan briefly unsettled markets but key tech shares, particularly Tesla, turned things around. CEO Elon Musk's pledge of affordable models and new tech ventures overshadowed lackluster quarterly outcomes.

Meta and IBM contributed positively, but Microsoft's bleak cloud business prospects were a disheartening surprise. Adding to tensions, AI investment debates surged after a Chinese startup's breakthrough sparked sell-offs in related stocks. Analysts caution about policy impacts and market trajectories.

(With inputs from agencies.)