2023-04-27 20:46:08
by Sinéad Carew, Sruthi Shankar and Ankika Biswas
(Archyde.com) – The New York Stock Exchange ended sharply higher on Thursday as earnings and forecasts released the day before by tech giant Meta Platforms, parent company of Facebook, overshadowed fears of a slowdown in the economy. American economy.
The Dow Jones Industrial Average gained 1.57%, or 524.29 points, to 33,826.16 points.
The broader S&P-500 gained 79.36 points, or 1.96%, to 4,135.35 points.
The Nasdaq Composite advanced for its part by 287.89 points (2.43%) to 12,142.24 points.
While the Nasdaq recorded its largest daily gain since March 16, the S&P-500 and the Dow Jones ended with an unprecedented percentage increase since January 6.
Big tech stocks were the catalyst for the session, following Meta reported on Wednesday following the close a current quarter revenue forecast above Wall Street expectations, thanks to a jump in its sales ads powered by artificial intelligence.
Meta rose 13.9% to settle at an over-year high. Alphabet, which released better-than-consensus results earlier this week, and Comcast also finished higher.
In their wake, communication services recorded a 5.5% gain, a peak since early February 2022, achieving the best performance of the major S&P-500 sectors during the session. Energy advanced 0.5%.
Prior to the publication of its results, following the close, Amazon was up solidly.
“It’s a risk-taking day. People are clearly focused on results. Meta and Microsoft’s were really, really good, overshadowing slowing GDP growth and rising inflation,” he said. commented Chris Zaccarelli, Chief Investment Officer of the Independent Advisor Alliance in Charlotte.
Data released during the day show that the growth of the American economy slowed more than expected in the first quarter, to 1.1%, once morest a consensus of +2.0%, following +2.6% over the period. October-December.
Noting that the acceleration in consumer spending had been offset by tighter business investment spending, Chris Zaccarelli said the macro data was “very negative”.
“With the market so high, it shows that investors are looking beyond the macro… This is not irrational exuberance,” he added, citing the strong quarterly results. Expectations for the quarterly earnings season have improved, with a 2.4% year-on-year drop in earnings for S&P-500 companies now expected by analysts, compared to a 5.1% decline earlier this year.
Moreover, the markets are mostly anticipating that the US Federal Reserve (Fed) will decide next week on another 25 basis point interest rate hike.
Among the movements of value to note, EBay rose 5.1% following having said that it anticipates for the current quarter a turnover higher than expected.
Eli Lilly gained 3.7% following revising its full-year profit forecast upwards.
(French version Jean Terzian)
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