The Dow Jones Industrial Average rose on Thursday{

Dow finishes nearly 270 points higher

The Dow Jones Industrial Average jumped 269.76 points, or 0.8%, to finish at 34,122.42. The S&P 500 added 0.45% to end at 4,396.44, while the tech-heavy Nasdaq Composite closed flat at 13,591.33.

— Samantha Subin

Financial stocks outperform after Fed stress test

Financial stocks gained on Thursday, contributing to the Dow Jones Industrial Averages' more than 100-point rise and a 1.1% increase in the S&P 500 financials sector.

The gains stemmed from big bank stocks, including JPMorgan Chase, Bank of America, Goldman Sachs and Wells Fargo. Shares rose more than 2% after the lenders passed the Federal Reserve's annual stress test. Other winners in the financial sector included Visa, M&T Bank, Comerica and Charles Schwab, last up about 2% each.

Energy and materials stocks also rose lifting the respective S&P sectors about 0.7% each. Some winners up more than 1% included Steel Dynamics, Mosaic, EQT Corp, Coterra Energy and Marathon Oil.

— Samantha Subin

the Federal Reserve's annual stress test

The 30-stock index jumped 269.76 points, or 0.8%, to finish at 34,122.42, lifted by major bank names. The S&P 500 added 0.45% to end at 4,396.44, while the tech-heavy Nasdaq Composite closed flat at 13,591.33.

JPMorgan Chase and Goldman Sachs each rose more than 3%, while Wells Fargo advanced 4.5%. The action came a day after the central bank said all 23 institutions included in its annual stress test are well capitalized to weather a severe recession scenario. Other financial stocks that took a hit during this year's banking crisis also gained, including Charles Schwab, Western Alliance and Zions Bancorporation.

A slate of positive economic data signaled economic resilience despite looming recession fears. That included a large upward revision{

GDP revision, jobless claims show resilient economy

Two pieces of economic data on Thursday suggested that the U.S. economy is in stronger shape that Wall Street thought.

First-quarter GDP was revised sharply higher to 2.0% growth from 1.3%, according to the Commerce Department.

Meanwhile, weekly jobless claims fell to 239,000, the lowest level since May. Economists surveyed by Dow Jones were expecting 264,000 claims.

— Jesse Pound

"Sectors that do well when the economy is performing well are holding up today, but certainly the stress tests yesterday were another good sign that even if the economy softens, banks are much more resilient than what we saw back in the 2008 period," said Edward Jones senior investment strategist Mona Mahajan.

It has been a banner first half, and Friday marks its final trading day. The S&P 500 is up 14.5% this year and on pace for its best monthly performance since January. The tech-heavy Nasdaq has climbed nearly 30% and is heading toward its best first half since 1983 as rising optimism around artificial intelligence pushes up technology stocks. The blue-chip Dow is the relative underperformer, up just 2.9%.

Despite the solid start to 2023, some on Wall Street are bracing for a potentially volatile second half.

"Markets don't go up in a straight line forever, and so, we wouldn't be surprised to see some period of consolidation," as Wall Street takes some profits, Mahajan said. Investors should consider using volatility to position for a broad-based recovery, she added.

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Apple — up nearly 46% in 2023 — nears $3 trillion market capitalization

Apple climbed to yet another intraday record Thursday, touching a high of $190.07 and bringing its market capitalization to within a hair of $3 trillion. In late day trading, Apple's market value was about $2.98 trillion.

By CNBC's calculations based on the current number of shares outstanding, Apple will become a $3 trillion company — a level it's never before achieved — when the stock reaches $190.73.

— Scott Schnipper, Christopher Hayes

Dow finishes nearly 270 points higher

The Dow Jones Industrial Average jumped 269.76 points, or 0.8%, to finish at 34,122.42. The S&P 500 added 0.45% to end at 4,396.44, while the tech-heavy Nasdaq Composite closed flat at 13,591.33.

— Samantha Subin

Wolfe Research says Powell will continue to 'thread the needle' into a weakening backdrop

Recent comments from Federal Reserve Chair Jerome Powell did little to change the market's view on the economic outlook from here, according to Wolfe Research's Chris Senyek.

"In our view, Fed Chair Powell will likely continue to try to 'thread the needle' between bringing down inflation & avoiding a recession, which is near-term bullish," he said in Thursday note to clients, adding that the firm's expectations that rates will remain "higher for longer" remain unchanged.

"While we still expect a U.S. recession to start hitting in the 2nd half, the outlook for other major developed markets is likely to deteriorate even faster, given that they are even more behind the inflation curve," Senyek said.

— Samantha Subin

Retail traders reduce exposure to A.I. stocks

Retail traders took profit on names with exposure to artificial intelligence over the past week of trading, according to JPMorgan.

When looking at the net difference between buying and selling from retail investors, $648 million was sold off of Advanced Micro Devices. Nvidia saw a net loss of $106 million, while retail traders dropped $92 million on balance of Microsoft. All three have rallied in recent months amid excitement around AI.

But retail investors bought into Tesla on net over the same time period, putting $288 million into the stock.

— Alex Harring

Implied volatility for regional banks is still low, Barclays says

Options market pricing suggests that the mid-month slide for regional bank stocks was not a sign that investors were expecting another crisis, according to Barclays.

The SPDR S&P Regional Banking ETF (KRE) fell 8% last week, erasing some of a recent recovery rally for the ETF. However, Barclays strategist Stefano Pascale said there was little change in the options pricing around the fund.

"While KRE vol remains expensive, it is noteworthy that the recent ~10% pullback (amid talk of increased capital requirements) left implied vol unperturbed, suggesting investors remain sanguine about regional banks," the note said.

The KRE has stabilized again this week and is up more than 1% on Thursday.

— Jesse Pound

Fed's Bostic doesn't see the need for rate hikes or cuts ahead

Atlanta Federal Reserve President Raphael Bostic said Thursday he's not on the same page as his fellow central bankers who have indicated further interest rate hikes likely will be needed to bring down inflation.

"In my view, it is less certain that we need to keep hiking the policy interest rate in the immediate term, lest we risk tightening too much and draining too much momentum from the economy," Bostic said in prepared remarks for a speech in Dublin, Ireland.

Citing a variety of surveys and indicators, Bostic said he thinks inflation is well on its way back to the Fed's 2% target "and in a way that may well be sustainable."

A nonvoting member this year of the Federal Open Market Committee, Bostic said that while he doesn't foresee future rate increases, he also doesn't expect any cuts either this year or in 2024.

—Jeff Cox

All S&P 500 sectors have rallied this month, but some haven't been strong enough for winning quarters

All 11 sectors of the S&P 500 are up compared with the start of June. But those gains haven't been enough to pull real estate, consumer staples, energy and utilities stocks into positive territory for the second quarter, which also concludes with the end of the trading month on Friday.

Real estate is up 3.8% so far this month, but is still on track to end the quarter 0.2% lower. Consumer staples' 1.7% monthly advance has still left it 1.1% below flat on the quarter.

Energy's month-to-date jump of 5.2% leaves it poised to close the quarter slightly nearly 3% down. And utilities' 0.4% June gain puts it on track to finish the second quarter 4.2% lower.

The other seven sectors are all slated to end both the month and quarter up. Information technology, consumer discretionary and communication services are all on pace for quarterly gains larger than 11%.

— Alex Harring

Fidelity Investment files spot bitcoin ETF

Fidelity Investments is joining the rush of asset managers launching bitcoin ETFs, according to a securities filing released Thursday.

Earlier this month, BlackRock's filed for a spot bitcoin ETF, which has long been opposed by the Securities and Exchange Commission.

— Jesse Pound

Fed research paper sees trouble ahead for the stock market

A new white paper from the Federal Reserve argues that elevated tax and interest rates could translate into "bleak" 2% annual returns for the stock market.

"The boost to profits and valuations from ever-declining interest and corporate tax rates is unlikely to continue, indicating significantly lower profit growth and stock returns in the future," Michael Smolyansky writes in the paper titled "End of an era: The coming long-run slowdown in corporate profit growth and stock returns."

A principal economist for the central bank, Smolyansky said most of the market's returns can be traced to low interest rates and taxes that likely won't be around again for a while.

— Jeff Cox

UBS survey shows resilient restaurant consumer

Restaurant consumers are largely resilient despite the macro economic outlook, UBS's latest quick-serve restaurants/casual dining survey found.

"Results suggest restaurant visit demand remains solid and although easing from elevated levels in '21 and '22, is consistent w/ pre-COVID levels," analyst Dennis Geiger wrote in a note Thursday. "While customers indicated spending pressures are having an impact on visit intent & select brand perceptions, brands that are executing against key traffic driving initiatives exhibit positive visit intent."

Quick-serve restaurants appear best positioned in this environment, thanks to their good value and promotions, he said.

"We view survey results as most favorable for MCD, w/ consumer respondents highlighting positive brand perceptions & solid go forward visit intent, consistent w/ our positive franchisee discussions suggesting ongoing momentum & optimism in outlook," Geiger added.

— Michelle Fox

Stocks making the biggest moves midday

Check out some of the companies making headlines in midday trading.

Micron Technology — The chip stock dropped 3.2%. Micron reported revenue of $3.75 billion late Wednesday, topping the $3.65 billion expected by analysts, per Refinitiv. Micron said it believes the memory chip industry has passed its trough in revenue, but said its situation in China — which announced in May that it would bar some purchases of Micron's products — "remains uncertain and fluid."

Occidental Petroleum - Shares of the oil giant rose more than 1% after Warren Buffett's Berkshire Hathaway once again increased its stake. The conglomerate purchased an additional 2.1 million Occidental shares on Monday, Tuesday and Wednesday, boosting its stake in the Houston-based energy producer to 25.1%.

Joby Aviation — Shares climbed 14% in midday trading. The company announced a $100 million investment earlier on Thursday from SK Telecom. The stock has been on a hot streak this week: On Wednesday, shares surged 40% after the company said it received a permit to begin flight testing its first electric vertical takeoff and landing aircraft.

Read the full list here.

— Brian Evans

JPMorgan downgrades Citizens shares after Federal Reserve's annual stress test

Citizens Financial Group were briefly under pressure after the release of the Federal Reserve's annual stress test on Wednesday. Following the report, JPMorgan analyst Vivek Juneja on Thursday downgraded Citizens Financial Group to neutral from overweight. All 23 of the U.S. banks passed the stress test, but the analyst noted Citizens will see a bigger increase in capital requirements.

"[This] will increase capital requirement to estimated 8.6% CET1 ratio which will further pressure profitability levels. Citizens has a lower cushion relative to peers above minimum CET1 requirements among our banks based on 3/31 levels and has continued to buy back stock in 2Q," Juneja wrote.

"In addition, Citizens is being pressured by high losses on its CRE loans due to high level of maturities of office CRE loans in 2023 and 2024 - it recently increased its outlook for 2Q NCOs to 40ish bp range. Citizens' increase in capital erosion in DFAST '23 was driven by increased loan loss provisions," Juneja added.

— Sarah Min

AI concerns overshadow long-term growth potential for WMG, UBS says

UBS analyst Batya Levi initiated coverage of Warner Music Group with a neutral rating, saying that the company's long-term prospects looked strong but that the stock could have a hard time rallying in the near term.

"We see WMG as a LT beneficiary of secular trends in the music industry (inc. the adoption of streaming/emerging platforms driving DD revenue growth; a predictable business model supported by global IP) and improving operating leverage," Levi wrote.

"That said, WMG's revenue growth has recently been below industry levels due to a delayed release slate and a choppy advertising market. The impact of AI has also weighed on the group, a risk we expect the industry to manage through but remain an overhang for now."

UBS set a price target of $29 per share for WMG. Trading closed at $26.67 per share on Thursday.

— Jesse Pound

Pfizer underperformance could be here to stay, Credit Suisse says

Pfizer may continue underperforming its peers in the pharmaceutical space, Credit Suisse warned.

Analyst Trung Huynh downgraded the pharmaceutical stock to neutral from outperform and cut his price target by $7 to $40. His new target implies shares could rally 10.2% over the next year, but the stock has tumbled nearly 30% since 2023 began.

"As Pfizer enters a period of uncertainty and limited pipeline catalysts, we see greater opportunity for growth among other US Major peers," Huynh said in a Thursday note to clients.

CNBC Pro subscribers can read more here.

— Alex Harring

Disney faces 'meaningful uncertainty,' KeyBanc says

KeyBanc moved to the sidelines on Disney with multiple business units under pressure.

Analyst Brandon Nispel downgraded shares of the media and entertainment giant to sector weight from overweight. He noted challenges facing ESPN, studios and parks.

"We prefer to step aside, acknowledging meaningful uncertainty, and wait for further catalysts, as buying the dip has been a losing trade," Nispel said in a note to clients Wednesday.

CNBC Pro subscribers can read the full story here.

— Alex Harring

Financial stocks outperform after Fed stress test

Financial stocks gained on Thursday, contributing to the Dow Jones Industrial Averages' more than 100-point rise and a 1.1% increase in the S&P 500 financials sector.

The gains stemmed from big bank stocks, including JPMorgan Chase, Bank of America, Goldman Sachs and Wells Fargo. Shares rose more than 2% after the lenders passed the Federal Reserve's annual stress test. Other winners in the financial sector included Visa, M&T Bank, Comerica and Charles Schwab, last up about 2% each.

Energy and materials stocks also rose lifting the respective S&P sectors about 0.7% each. Some winners up more than 1% included Steel Dynamics, Mosaic, EQT Corp, Coterra Energy and Marathon Oil.

— Samantha Subin

Netflix rises as Citi says rally could continue

Netflix rose slightly on Thursday after Citi said the stock could extend its rally thanks to the success of its advertisement-enabled subscription tier.

Analyst Jason Bazinet reiterated his buy rating and added a positive catalyst watch. Bazinet also raised his price target by $100 to $500 per share, which now implies a potential upside of 16.3%.

"We are more bullish on the likely success of the Ad Tier," he said in a note to clients Wednesday.

CNBC Pro subscribers can read more on Bazinet's call.

— Alex Harring

Odds rising that a July Fed rate hike is a near certainty. And now September's in play too.

Odds that the Federal Reserve will raise its benchmark fed funds rate to 5.25%-5.50% at its next meeting on July 26 have climbed to more than 89% in the wake of Thursday's upward revision to first quarter gross domestic product and weaker-than-expected weekly jobless claims.

The probability of a July hike was less than 82% on Wednesday and 74% a week ago, according to the CME Fed Tracker tool that uses 30-day fed funds futures pricing data.

Meanwhile, the probability of another quarter point move to 5.50%-5.75% at the Fed's next meeting in September (it skips August), have also risen further, to almost 27%. A week ago, the odds of rates moving that high in September were a hair below 15%.

— Scott Schnipper

Micron moves down in morning trading

Investors sold gains on Micron as the market opened Thursday, pushing shares down more than 4% after trading up briefly.

Despite the leg down in morning trading, the chip stock is still up more than 30% this year.

— Alex Harring

Stocks open little changed

Stocks opened little changed on Thursday, with all three major averages hovering near the flatline.

The S&P 500 and Nasdaq Composite dipped less than 0.05% each, while the Dow Jones Industrial Average added 13 points.

— Samantha Subin

Stocks making the biggest premarket moves

Here are some of the names making moves in the premarket

• Joby Aviation — Shares gained another 19% premarket. The aviation company announced a $100 million equity investment from South Korea's SK Telecom, expanding an existing partnership. On Wednesday, the stock surged 40% after the company said it received a permit to begin flight testing its first electric vehicle takeoff and landing vehicle (eVTOL).
• Overstock — Shares rose nearly 10% after the retailer closed its deal to buy the Bed Bath & Beyond brand out of bankruptcy. Overstock will shift to using the Bed Bath & Beyond name in the coming weeks.
• Virgin Galactic — The stock climbed about 2% ahead of the spaceflight company's first commercial spaceflight launch later Thursday.

— Michelle Fox

Powell expects it will take 'a good while' for low inflation to return

Federal Reserve Chairman Jerome Powell said Thursday he doesn't expect a low-inflation environment to happen anytime soon, complicating decisions for policymakers.

Speaking in Madrid, Spain, the U.S. central bank leader said it could be a "good while" before the rate of price increases returns to the Fed's 2% target.

"In terms of rates we're, you know, I think we're just going to have to find our way," Powell said during a question-and-answer session.

"You would have thought it wouldn't have been thinkable to have a 5% interest rate before the pandemic, and now the question is, is that tight enough policy?" he added. "A strong majority of [Federal Open Market Committee] participants think that we need to do more to get to a level of tight policy ... So I don't think we have the longer-run answer."

—Jeff Cox

GDP revision, jobless claims show resilient economy

Two pieces of economic data on Thursday suggested that the U.S. economy is in stronger shape that Wall Street thought.

First-quarter GDP was revised sharply higher to 2.0% growth from 1.3%, according to the Commerce Department.

Meanwhile, weekly jobless claims fell to 239,000, the lowest level since May. Economists surveyed by Dow Jones were expecting 264,000 claims.

— Jesse Pound

Big banks rise after passing Fed stress test

Bank stocks rose broadly in premarket trading Thursday after passing the Federal Reserve's annual stress test that evaluates the financial resilience of the largest financial institutions.

The Fed said Wednesday that all 23 banks included in the annual assessment are well capitalized to weather a severe recession scenario. This year's stress test comes after a slew of bank collapses sent shockwaves through the industry.

Bank of America and Wells Fargo gained nearly 2% before the bell. Morgan Stanley, Goldman Sachs and JPMorgan Chase were last up more than 1% each.

— Samantha Subin

Freyr pops in premarket trading following bullish Morgan Stanley call

Freyr jumped more than 10% before the bell on the back of a Morgan Stanley upgrade.

Analyst Adam Jonas upgraded the battery stock to overweight from equal weight. His $13 price target implies shares could rally 72.2% from Wednesday's close. That would mark a turn for the stock, which has fallen about 13% this year.

"We see next 3-6 months as a catalyst window for unlocking shareholder value," Jonas said in a Wednesday note. "In our opinion, FREY is a relatively binary investment opportunity that we believe can show meaningful progress on commercial milestones."

CNBC Pro subscribers can click here to read more.

— Alex Harring

Chip stocks gain with Micron

Popular chipmakers rose before the bell as Micron Technology posted better-than-expected results for the recent quarter and highlighted improving demand trends.

The news boosted Micron more than 3% premarket. Popular artificial intelligence beneficiaries Nvidia and Advanced Micro Devices rose 1% and 1.8%, respectively, in sympathy. Marvell Technology also gained 1%.

— Samantha Subin

Treasury yields climb as investors digest Fed Chair Powell’s interest rate comments

U.S. Treasury yields rose on Thursday as investors considered what could be next for interest rates after Federal Reserve Chairman Jerome Powell gave new hints about the monetary policy outlook. Further restriction is expected, Powell said Wednesday, adding that there is a possibility of rates being hiked at consecutive Fed policy meetings.

At 4:21 a.m. ET the yield on the 10-year Treasury was up by over two basis points to 3.7389%. The 2-year Treasury was last trading more than three basis points higher at 4.7534%.

Yields and prices move in opposite directions. One basis point equals 0.01%.

— Sophie Kiderlin

Fed Chair Powell: U.S. bank failures highlight need for stronger regulation

Federal Reserve Chairman Jerome Powell said Thursday that the collapse of Silicon Valley Bank and two other mid-sized American banks earlier this year indicated a "need to strengthen our supervision and regulation of institutions of the size of SVB."

Speaking at a conference held by the Spanish central bank in Madrid, Powell suggested the stress in the banking system over the spring would have been "much more difficult to manage had the largest banks been undercapitalized or illiquid."

He also said the Fed is "very reluctant to say" if the banking crisis is over, adding that central bank policymakers' job is to "worry about things."

- Elliot Smith

Stocks on the move in Europe: H&M up 16% on strong earnings, Renault up 6%

H&M shares surged more than 16% to lead the pan-European Stoxx 600 index by early afternoon after the Swedish fashion retailer posted stronger-than-expected profits for the March to May period, and said third-quarter sales had also started well.

British outsourcing company Serco jumped 10% after increasing its full-year revenue and profit forecasts.

French carmaker Renault climbed 6% after raising its 2023 outlook on the back of successful new launches, particularly the SUV Austral and Dacia Jogger models.

At the bottom of the European blue chip index, Spanish electric utility Endesa dropped 8.8%.

- Elliot Smith

European markets little changed at the open

The pan-European Stoxx 600 index hovered around the flatline shortly after markets opened, with retail stocks adding 1.2% to lead gains while travel and leisure stocks fell 0.5%.

- Elliot Smith

S&P 500 and Nasdaq Composite on pace for four straight months of gains

The S&P 500 and the Nasdaq Composite are about to end June with flying colors.

The broad-market index is up 4.7% this month, while the tech-heavy benchmark has a gain of more than 5%. That marks the fourth consecutive winning month for both averages. It's also the longest monthly streak of gains for both the S&P 500 and the Nasdaq Composite since 2021.

The tech sector boosted the S&P 500, rising 4.5% in June, but consumer discretionary also buoyed the index. That sector added 10.4%, courtesy of Carnival, Norwegian Cruise Line and Royal Caribbean. Each of the three travel stocks are on track for double-digit gains in June, according to FactSet.

The Nasdaq-100 is also on pace for a fourth straight winning month, up 4.9% in June. The index last accomplished this feat in 2020.

-Darla Mercado, Chris Hayes

Micron shares jump after earnings report

Micron Technology saw its shares jump more than 2% after the semiconductor company posted quarterly results that came in better than expected. The chipmaker posted a loss of $1.43 per share, compared to analyst estimate of a $1.61 loss, according to FactSet. Revenue of $3.75 billion in the fiscal third quarter was better than an estimate of $3.65 billion.

The company said the trough of the semiconductor industry might be over as price trends improved.

"The ongoing improvement of customer inventories and memory content growth are driving higher industry demand, while production cuts across the industry continue to help reduce excess supply," Micron said.

— Yun Li

23 biggest banks passed the Fed's stress test

All 23 of the U.S. banks included in the Federal Reserve's annual stress test weathered a severe recession scenario while continuing to lend to consumers and corporations, the regulator said Wednesday.

The banks were able to maintain minimum capital levels, despite $541 billion in projected losses for the group, the Fed said in a release. Banks including JPMorgan Chase and Wells Fargo are expected to disclose updated plans for buybacks and dividends Friday after the close of regular trading.

— Hugh Son