US Market Reaction To Trump's Gaza Plan; Dow Jones Record Best Performance In 2 Weeks; S&P 500, Nasdaq Up Too

Us market reacted in a bullish tone after Donald Trump stirred a panic with his comment that the US should take over Gaza. He even signaled plans to send US troops to the conflicted strip. Dow Jones recorded its best performance in two weeks, while S&P 500 and Nasdaq Composite surged too on February 5th. While US stock futures traded higher in the early hours of Thursday, continuing their gaining momentum.

While addressing reporters, Donald Trump announced that his government is looking to take over the Gaza Strip and will do a job with it too. He called his plan a long-term ownership. He also hinted that they could send US troops to dismantle all dangerous unexploded bombs in the region. By taking over, Trump aims to create thousands and thousands of jobs to economically revive Gaza.

Israel's Prime Minister Benjamin Netanyahu praised Trump for his out-of-the-box fresh ideas.

After Trump's Gaza plan, Dow Jones traded to hit an intraday high of 44,886.88 before closing at 44,873.28, up by 317.24 points or 0.71%, which makes it the best performance in two weeks.

The S&P 500 index surged by 23.60 points or 0.39% to close at 6,061.48, while the tech-heavy index Nasdaq Composite climbed by 38.31 points or 0.19% to finish at 19,692.33.

Meanwhile, on Thursday, US stock futures jumped for the second consecutive day.

According to Trading Economics, on Wednesday, the Dow surged 0.71%, marking its best performance in nearly two weeks. The S&P 500 and Nasdaq Composite also saw gains of 0.39% and 0.19%, respectively, driven by a 5.2% jump in Nvidia shares as artificial intelligence stocks clawed back losses from the DeepSeek debacle.

Trading Economics further said, investors also brushed off concerns about tariffs, as both the US and its trading partners have adopted a cautious approach so far. Strong earnings reports and solid economic data further fueled positive market sentiment.

Looking ahead, investors are focusing on quarterly reports from Amazon and other major companies on Thursday, as well as the latest weekly jobless claims. In after-hours trading, semiconductor firms Qualcomm, Arm, and Skyworks Solutions saw declines following weak quarterly results, while Ford Motor's stock dropped on a disappointing 2025 forecast.