Stocks closed higher on Thursday as investors parsed a patchwork of corporate results and digested the confirmation of a meeting between former U.S. President Donald Trump and Chinese President Xi Jinping, a development that briefly softened geopolitical jitters. The gains came amid an upward revision in analysts’ expectations for third-quarter corporate profits, a signal of underlying resilience in U.S. earnings even as individual company reports diverged.

Data from LSEG showed analysts now expect S&P 500 third-quarter earnings to rise 9.9 percent year-on-year, up from a forecast of 8.8 percent on Oct. 1. That upward revision reflects companies that beat estimates and helped offset sector-specific disappointments, providing investors with an earnings narrative that is more constructive than markets priced at the start of October.

Sector performance was mixed. American Airlines shares rose 5.6 percent after the carrier raised its annual profit forecast, a sign that pricing power and capacity management continue to support airline margins despite high fuel costs earlier in the year. By contrast, Southwest Airlines fell 6.3 percent despite posting a surprise quarterly profit and reporting record current-quarter sales, underscoring investor sensitivity to management commentary and forward guidance even when headline results beat expectations.

Energy and industrial names led some of the strongest moves. Independent refiner Valero Energy jumped 7.0 percent after reporting better-than-expected third-quarter profits, reflecting stronger refining margins and continued demand for transportation fuels as seasonal consumption patterns persist. Chemical giant Dow reported a smaller-than-expected quarterly loss, with the company attributing improved results to cost-cutting measures and higher volumes that helped offset weakness in chemical prices. Those outcomes highlight the ongoing cyclical pressures in chemicals and the margin benefits from efficiency programs.

Market reaction to the confirmed Trump-Xi meeting was immediate but measured. Investors frequently treat high-level diplomatic engagement as a de-risking event for global trade and supply-chain sentiment, and confirmation of direct talks between the two leaders appeared to reduce tail-risk premia in certain risk-sensitive assets. How much any single meeting will influence trade policy, tariffs or longer-term strategic competition remains uncertain, and markets will likely wait for concrete outcomes rather than headlines.

The broader picture is one of cautious optimism: upward earnings revisions provide statistical support for risk assets, while mixed corporate beats and misses emphasize the dispersion across sectors. For policymakers, stronger-than-expected corporate earnings could temper recession concerns and factor into debates over interest-rate paths, but persistent sectoral weaknesses—especially in cyclical industrials and parts of the consumer economy—mean central-bank decisions will continue to hinge on incoming economic data.

Investors will be watching subsequent earnings releases and any tangible developments from the Trump-Xi meeting for indications of whether the current blend of corporate resilience and geopolitical détente can persist into year-end.