Stocks in the U.S. market made a comeback on Thursday, with the S&P 500 index aiming to end its four-day losing streak, as investors digested the latest round of corporate earnings. All major indices showed gains during midday trading in New York, with small-cap stocks leading the way.

The iShares Russell 2000 ETF (NYSE: IWM) outperformed, surging by 1% and providing a glimmer of hope for investors. The strong performance in the small-cap sector was bolstered by positive sentiment in the airline industry, as the U.S. Global Jets ETF (NYSE: JETS) climbed 2.7%, following a 3.9% surge the day before.

However, electric vehicle manufacturer Tesla Inc. (NASDAQ: TSLA) experienced another lackluster trading session, sinking over 3% and reaching its lowest close since January 2023. The decline came after Deutsche Bank downgraded the company from Buy to Hold, citing concerns over Tesla's strategic shift towards autonomous vehicles.

In economic news, the Philadelphia Fed Manufacturing Index exceeded expectations with a reading of 15.5 for April, compared to the anticipated 1.5. This positive surprise indicates stronger manufacturing activity in the region. On the downside, existing home sales disappointed, showing a decline of 4.3% year over year.

Commodity markets saw a rebound, with copper prices witnessing robust gains of over 2%, reaching a 22-month high. Meanwhile, gold also displayed strength with a 1% increase. Natural gas prices rallied by over 3% due to lower-than-expected inventory builds reported last week.

Interestingly, Bitcoin (CRYPTO: BTC) staged a rally of 4% to reach $63,700 ahead of the highly anticipated halving event. This increase in the leading cryptocurrency's value garnered investor attention, considering the potential impact of the halving on its scarcity and price dynamics.

Overall, Thursday's trading session offered a ray of hope for the market, as stocks rebounded on the back of positive corporate earnings and encouraging economic data. However, the ongoing struggles faced by Tesla serve as a reminder of the challenges that lie ahead for certain sectors amid shifting industry landscapes.