Wall Street's rally roars into a 3rd day as companies' profits keep piling up, for now at least

NEW YORK (AP) — Wall Street’s rally kept rolling Thursday as better-than-expected profits for U.S. companies piled up, though CEOs said they’re unsure whether it will last because of uncertainty created by President Donald Trump’s trade war.

The S&P 500 charged 2% higher and pulled within 11% of its record set earlier this year. The Dow Jones Industrial Average rose 486 points, or 1.2%, while the Nasdaq composite jumped 2.7%.

Tech stocks helped lead the way, including ServiceNow after the AI platform company delivered a stronger profit for the start of 2025 than analysts expected. The company, whose AI agents help clients manage their customers, saw its stock jump 15.5% after it also gave a forecasted range for upcoming subscription revenue that beat some analysts’ expectations.

Southwest Airlines likewise reported stronger results than expected for the first three months of the year. But its stock flipped between gains and losses through the morning after it also became the latest U.S. carrier to say the outlook for the economy looks so cloudy that it’s pulling some of its financial forecasts for the year.

CEO Bob Jordan said the company is “controlling what we can control,” and it’s cutting how much flying it will do in the second half of the year. Southwest’s stock eventually pulled higher in afternoon trading and finished up 3.7%.

Rival American Airlines, meanwhile, pulled its financial forecasts for the full year and said it plans to provide an update when “the economic outlook becomes clearer.” Its stock rose 3.1% after it also topped profit expectations for the latest quarter.

Companies across industries have been talking about how difficult it is to give financial forecasts for the upcoming year, as Wall Street typically expects them to do, because of the on-again-off-again rollout of Trump’s tariffs.

U.S. stocks rallied the prior two days on hopes that Trump was softening his approach on tariffs and his criticism of the Federal Reserve, which had earlier shaken markets. But China, the world’s second-largest economy, on Thursday denied it’s involved in active negotiations with the United States over tariffs, saying that any suggestion of progress was as groundless as “trying to catch the wind.”

Calling Trump’s policy announcements “headline turbulence,” Tan Jing Yi of the Asia & Oceania Treasury Department at Mizuho Bank warned that global economies could be hurt in the long run, adding: “Sentiments swing from hopes of intense relief to inflicted economic gloom.”

This week began with a steep loss for U.S. stocks on fears about the trade war, and it’s been a microcosm of the market’s severe swings in recent weeks as investors struggle with how to react to conditions that sometimes change by the hour. The only certainty is that the market will likely keep swinging until more clarity arrives on tariffs, which many investors expect would cause a recession unless they’re rolled back.

“It’s an unhealthy market backdrop right now, and we’re trying not to react too much,” said John Belton, a portfolio manager at Gabelli Funds.

Households across the United States are preparing for the higher prices that economists say tariffs would bring, while the head of the International Monetary fund urged countries to move “swiftly’’ to resolve their trade disputes that threaten global economic growth.

In the meantime, many U.S. companies are continuing to report stronger profit than analysts expected for the start of 2025, while offering caution and uncertainty about the year ahead.

Toy company Hasbro was a winner and jumped 14.6% after reporting better profit and revenue for the latest quarter than analysts expected. It cited strong growth for its Magic: The Gathering game, among other products.

Texas Instruments rallied 6.6% after the semiconductor company likewise reported a stronger profit than expected.

They helped offset a 3.7% drop for Procter & Gamble, which fell even though the company behind Olay, Tide and Pampers reported stronger results for the latest quarter than expected. Its revenue came in below expectations, and it also cut its forecast for profit growth this fiscal year.

Procter & Gamble said it’s expecting a $200 million hit to its earnings this fiscal year because of higher costs for commodities.

At PepsiCo, CEO Ramon Laguarta said his company expects “more volatility and uncertainty” and that “consumer conditions in many markets remain subdued and similarly have an uncertain outlook.”

His company’s stock fell 4.9% after the beverage and snack maker cuts its forecast for an underlying measure of profit over 2025, citing increased costs from tariffs and subdued conditions for customers. A 25% tariff on imported aluminum for cans is among those hitting PepsiCo and other beverage makers.

All told, the S&P 500 rose 108.91 points to 5,484.77. The Dow Jones Industrial Average added 486.83 to 40,093.40, and the Nasdaq composite jumped 457.99 to 17,166.04.

In the bond market, Treasury yields continued to ease following their disconcerting run higher earlier this month. Yields usually fall when fear is dominating markets, but their surprising earlier rise stirred fears that Trump’s trade war was degrading the U.S. bond market’s status as one of the world’s safest places to keep cash.

The yield on the 10-year Treasury fell to 4.30% from 4.40% late Wednesday, in part on expectations that the Federal Reserve could cut interest rates later this year to soften the economic blow that may come from tariffs.

Yields sank after a report showed slightly more U.S. workers applied for unemployment benefits last week than economists expected. A separate report said sales of previously occupied homes weakened by more than expected in March.

In stock markets abroad, indexes were mixed amid modest moves across much of Europe and Asia.

AP Business Writers Yuri Kageyama and Matt Ott contributed.

Trader Michael Capolino works on the floor of the New York Stock Exchange, Thursday, April 24, 2025. (AP Photo/Richard Drew)

Specialist Genarro Sapolito works on the floor of the New York Stock Exchange, Thursday, April 24, 2025. (AP Photo/Richard Drew)

Trader Edward Curran, right, works on the floor of the New York Stock Exchange, Thursday, April 24, 2025. (AP Photo/Richard Drew)

Trader Peter Mancusoi works on the floor of the New York Stock Exchange, Thursday, April 24, 2025. (AP Photo/Richard Drew)

Specialist John Parisi works at his post on the floor of the New York Stock Exchange, Thursday, April 24, 2025. (AP Photo/Richard Drew)

Trader John Romolo works on the floor of the New York Stock Exchange, Thursday, April 24, 2025. (AP Photo/Richard Drew)

Trader Christopher Lagana works with colleagues on the floor of the New York Stock Exchange, Thursday, April 24, 2025. (AP Photo/Richard Drew)

Trader Edward McCarthy works on the floor of the New York Stock Exchange, Thursday, April 24, 2025. (AP Photo/Richard Drew)

Trader Robert Oswald works on the floor of the New York Stock Exchange, Wednesday, April 23, 2025. (AP Photo/Richard Drew)

Specialists Mark Fitzgerald, left, and John Parisi confer on the floor of the New York Stock Exchange, Wednesday, April 23, 2025. (AP Photo/Richard Drew)

Trader Jonathan Mueller works on the floor of the New York Stock Exchange, Wednesday, April 23, 2025. (AP Photo/Richard Drew)

Trader Sal Suarino works on the floor of the New York Stock Exchange, Wednesday, April 23, 2025. (AP Photo/Richard Drew)

Specialist Anthony Matesic, left, and trader Michael Conlon work on the floor of the New York Stock Exchange, Wednesday, April 23, 2025. (AP Photo/Richard Drew)

Specialist Michel Pistillo, left, works with traders James Matthews, center, and Ryan Falvey on the floor of the New York Stock Exchange, Wednesday, April 23, 2025. (AP Photo/Richard Drew)

Trader Niall Pawa, left, and Specialist Meric Greenbaum work on the floor of the New York Stock Exchange, Wednesday, April 23, 2025. (AP Photo/Richard Drew)

Specialist Glenn Carell, left, and trader Timothy Nick work on the floor of the New York Stock Exchange, Wednesday, April 23, 2025. (AP Photo/Richard Drew)

Trader Michael Milano works on the floor of the New York Stock Exchange, Wednesday, April 23, 2025. (AP Photo/Richard Drew)

Trader Fred Demarco works on the floor of the New York Stock Exchange, Wednesday, April 23, 2025. (AP Photo/Richard Drew)

GUANARE, Venezuela (AP) — Freedom came too late for Edilson Torres.

The former police officer was set to be buried Tuesday in his humble, rural hometown following his death in a Venezuelan prison, where he was held incommunicado since his November detention on what his family said were politically motivated accusations. Hours ahead of the ceremony, his children, neighbors, police officers, friends and dozens others gathered to pay their respects.

Torres, 51, died of a heart attack on Saturday, just as his family awaited the government's promised release of prisoners following the U.S. capture of then-President Nicolás Maduro. His death comes as scores of families like his — who once hesitated to approach advocacy groups — are now coming forward to register their loved ones as “political prisoners.”

Alfredo Romero, director of the organization Foro Penal, a non-governmental organization that tracks and advocates for Venezuelan prisoners, said the group has received a “flood of messages” since last week from families.

“They didn’t report it out of fear, and now they’re doing it because, in a way, they feel that there is this possibility that their families will be freed,” Romero said. “They see it as hope, but more importantly, as an opportunity.”

The head of Venezuela’s national assembly said last week that a “significant number" of Venezuelan and foreigners imprisoned in the country would be released as a gesture to “seek peace.”

Romero explained that of the roughly 300 families who reached out, about 100 cases so far have been confirmed as politically motivated. Most of those reported over the past few days, he said, once worked for Venezuela's military.

As of Tuesday morning, Foro Penal had confirmed the release of 55 prisoners. While Venezuela's government reported a higher figure of 116, it did not identify them, making it impossible to determine whether those freed were behind bars for political or other reasons.

“My little brother, my little brother,” Emelyn Torres said between sobs after his casket, cloaked in Venezuela's flag, arrived at her home for the wake. A few feet away, their grandmother nearly fainted as dozens of people crammed into the living room to pay their respects.

Hours earlier, as a minivan transported the body of her brother 267 miles (430 kilometers) from the capital, Caracas, to Guanare, Torres learned that other men linked to the WhatsApp group that led to her brother's arrest had just been released from prison. She wailed. He did not live long enough to walk free.

Among those who have been released are: human rights attorney Rocío San Miguel, who immediately relocated to Spain; Biagio Pilieri, an opposition leader who was part of Nobel Peace Prize winner María Corina Machado’s 2024 presidential campaign; and Enrique Márquez, a former electoral authority and presidential candidate.

Italian businessman Marco Burlò, who was released from prison Monday, told reporters outside an international airport in Rome Tuesday that he was kept isolated throughout his detention, which he characterized as a “pure and real kidnapping.”

“I can’t say that I was physically abused, but without being able to talk to our children, without the right to defense, without being able to speak to the lawyer, completely isolated, here they thought that I might have died," he said.

Janetsky reported from Mexico City.

Follow AP’s coverage of Latin America and the Caribbean at https://apnews.com/hub/latin-america

Flor Zambrano, whose son, Rene Chourio, she says is detained at Zone 7 of the Bolivarian National Police for political reasons, embraces relatives of other detainees outside the facility in Caracas, Venezuela, Monday, Jan. 12, 2026. (AP Photo/Matias Delacroix)

A photo of Edilson Torres, a Venezuelan police officer who died in prison a month after being arrested on accusations of treason, and his family adorns his coffin during his wake at his home in Guanare, Venezuela, Monday, Jan. 12, 2026. (AP Photo/Ariana Cubillos)

Relatives of Edilson Torres, a Venezuelan police officer who died in prison a month after being arrested on accusations of treason, sit by his coffin during his wake in Guanare, Venezuela, Monday, Jan. 12, 2026. (AP Photo/Ariana Cubillos)

Emelyn Torres leans over the casket of her brother, Edilson Torres, a Venezuelan police officer who died in prison a month after being detained on accusations of treason, during his wake at his home in Guanare, Venezuela, Monday, Jan. 12, 2026. (AP Photo/Ariana Cubillos)

Emelyn Torres and Maria Cristina Fernandez, the sister and grandmother of Edilson Torres, a Venezuelan police officer who died in prison after being detained on accusations of treason, embrace during his wake at his home in Guanare, Venezuela, Monday, Jan. 12, 2026. (AP Photo/Ariana Cubillos)