U.S. stocks extend gains as tensions ease

U.S. equities continued their upward trajectory on Thursday, building on the previous session's momentum as a reduction in geopolitical risk and stable inflation data bolstered investor confidence.

The Dow Jones Industrial Average rose 0.63 percent to 49,384.01. The S and P 500 added 0.55 percent to 6,913.35. The Nasdaq Composite Index increased by 0.91 percent to 23,436.02.

Seven of the 11 primary S and P 500 sectors ended higher, with communication services and consumer discretionary leading the gainers by going up 1.57 percent and 1.22 percent, respectively. Real estate and utilities led the laggards by losing 1.1 percent and 0.73 percent, respectively.

Market sentiment remained positive following U.S. President Donald Trump's midweek assurance that the United States "won't use force" in its pursuit of strategic interests in Greenland. The statement effectively removed a significant tailwind of volatility that had previously rattled global markets. On the macroeconomic front, the U.S. Bureau of Economic Analysis (BEA) announced on Thursday that the final reading of third-quarter GDP grew at an annualized rate of 4.4 percent, marking a slight upward revision from the previous estimate of 4.3 percent. It represents an acceleration from the 3.8 percent growth in the second quarter of 2025.

Meanwhile, the BEA released the delayed personal consumption expenditures (PCE) price index for both October and November 2025, the Federal Reserve's preferred inflation metric. The data showed a monthly increase of 0.2 percent and a year-over-year rise of 2.8 percent in November, both aligned precisely with economists' expectations.

Despite its importance, analysts suggested the PCE report may carry less influence than usual during the Fed's upcoming policy meeting on Jan 27-28, due to reporting delays caused by the recent government shutdown, which has left officials with a less current snapshot of December's economic activity.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note initially held steady at 4.27 percent before retreating to approximately 4.25 percent, matching Wednesday's close. This stabilization follows a peak of 4.3 percent reached earlier in the week, which represented the highest closing level for the yield since August.

U.S. stocks extend gains as tensions ease

The U.S. House of Representatives on Thursday failed to pass a resolution that would have barred President Donald Trump from further military actions against Venezuela, with a tie-breaking vote, 215-215, according to U.S. media reports.

The Democratic-backed war powers resolution requires the president to "remove United States Armed Forces from Venezuela, unless explicitly authorized by a declaration of war or specific statutory authorization for use of military force."

Lawmakers opposing the resolution argued that since the United States currently has no ground troops deployed in Venezuela, the resolution was unnecessary.

The tie vote reflects concerns within the Congress, including among some Republican lawmakers, about Trump's foreign policy, according to analysis by some U.S. media outlets.

Previously, several Democratic lawmakers said that given Trump and his administration's recent repeated signals of potential military intervention in Greenland, Iran, Colombia, Mexico, and Cuba, they would continue to push for such votes.

On Jan 3, the United States blatantly launched large-scale military strikes against Venezuela, seized by force Venezuelan President Nicolas Maduro and his wife, and took them out of the country.

The U.S. military strike against Venezuela and capture of its president has shocked the international community, triggering a steady stream of condemnation and serious concerns worldwide.

US House rejects resolution on restricting Trump's military action against Venezuela