The stock market on Wall Street pushed further into record territory on Thursday afternoon, with traders parsing a fresh round of economic data and earnings from some of the nation’s largest companies. By late trading, the S&P 500 was up about 0.3%, the Dow Jones Industrial Average had edged up 0.2% and flirted with an all-time high, and the Nasdaq composite was higher by roughly 0.6%. The moves reflected a market that remains comfortable with a robust economy even as the labor market shows signs of cooling, a combination that continues to support valuations near peak levels while keeping policymakers in focus.

The day’s gains were broad but concentrated in technology and consumer-discretionary names. Big-tech leaders such as Broadcom, Alphabet and Amazon helped pull indices higher, even as a handful of other stocks drifted lower on earnings misses or cautious guidance. Hormel Foods, for example, fell after reporting quarterly results that disappointed investors and prompting a trimmed annual outlook. The contrast underscored a market that is searching for leadership within a mixed corporate earnings backdrop while continuing to chase the potential for further upside in a low-rate environment.

Economists and market strategists pointed to the latest gross domestic product data as a key driver of the day’s optimism. The GDP print reinforced the view that the U.S. economy remains capable of delivering ongoing growth, even as some pockets of the labor market cool. “The GDP print reinforces the fact that this continues to be an economy, domestically, that is showing a great deal of resilience in terms of producing economic growth,” said Northey, a market strategist. The takeaway for investors is that domestic demand and corporate earnings momentum could support equities even if hiring remains uneven.

On the policy front, traders continued to price in a potential Federal Reserve rate cut next month, a prospect supported by softer payroll data and a sense that inflation is not accelerating rapidly enough to force a sharper policy stance. Fed Chair Jerome Powell signaled last week that a rate reduction may be warranted as the economy cools in the labor market, a stance that has kept credit conditions supportive for equities. Analysts cautioned that while a cut could bolster equity valuations, it also increases the importance of corporate earnings quality and macro data in sustaining momentum.

From the corporate frontline, the market reaction to earnings was mixed. While Broadcom, Alphabet and Amazon rose on strong or resilient guidance, Hormel’s disappointing numbers underscored the uneven nature of the earnings season. Investors are weighing whether the gains in a few large-cap tech names can offset slower results in more cyclical or traditional consumer goods names, and whether the overall earnings trajectory can justify higher valuations as the market approaches historic highs. In this environment, some investors are adopting a selective approach, favoring balance sheets and secular growth stories over tempo of near-term earnings beats.

The broader market narrative remains one of cautious optimism. While the S&P 500 has advanced into new territory and the Dow has chalked up fresh highs, strategists warn that valuations have climbed, and the path forward could hinge on a continued stream of solid earnings, inflation trends, and the health of the labor market. Market breadth has been uneven, with gains concentrated in a few leadership names while a swath of other stocks trade in a tight range. Still, the sense of momentum persists as investors chase the upside potential of a long-growth cycle and await further clarity from the Fed on policy direction and the economic data calendar.

To provide a more complete picture, analysts from different vantage points offered their take. Some noted that a strong GDP backdrop can sustain risk appetite even as the job market’s temperature remains cool enough to keep rate-cut expectations intact. Others warned that if wage growth or inflation were to reaccelerate, the Fed could recalibrate policy faster than markets anticipate, potentially weighing on equities. The confluence of robust corporate outcomes, macro growth, and policy expectations continues to shape daily swings, with traders trying to balance optimism with the fragility that can accompany peak-cycle markets.

Looking ahead, market participants are watching forthcoming data releases and earnings reports for guidance on whether this period of record-setting activity can extend deeper into the summer. Analysts emphasize several watchpoints: the trajectory of inflation in core measures, the durability of consumer demand, and the degree to which the labor market softens without derailing broader economic expansion. If these forces align, the market could push to new highs; if not, investors may shift toward sectors perceived as more resilient in a modest-growth, rate-cut environment.

Conclusion: The current market setup reflects a delicate balance between inflation, growth, and policy expectations. While the GDP data offers encouragement about sustained expansion and a possible easing of monetary policy, the path forward will depend on a steady drumbeat of earnings resilience and macro data that confirms the economy’s ability to grow without reigniting inflation. For now, Wall Street appears willing to chase further gains into the next trading sessions, but with a heightened awareness of the risks that come with valuations that have stretched in a low-rate regime.