The S&P 500 rose to its highest level in five months on Thursday as better-than-expected meta results further boosted sentiment around technology stocks, which led the market lower last year.
The broader market index rose 0.8%, or its best level since August. Meanwhile, the tech-heavy Nasdaq composite advanced 2.4% to its highest level since September. The gains came ahead of a trio of big tech results after Bell in Apple, Amazon and Alphabet.
At the same time, the Dow Jones Industrial Average fell 218 points, or about 0.6%. Key code pulled down Merck Despite beating estimates on the top and bottom lines, the drug company posted a weak outlook in its latest earnings results.
Some momentum emerged from the day’s gains as bond yields traded lower. The S&P 500 was up 1.85% at one point. The employment report for January is out on Friday.
Meta An increase of more than 24% Best day since 2013 After reporting a Earnings beat in the fourth quarter and declaring A $40 billion in share buybacks. It helped investors see past that Losses In the business unit that oversees Metaverse.
Other mega-cap tech stocks rose on the back of those results. Google-Parent Shares letters was more than 5% Amazon Up more than 6%. Apple Shares gained more than 2%.
Tech stocks outperformed in 2023, buoyed by recent signals that investors expect cooling inflation, leading to a pause in the Federal Reserve’s aggressive rate hike campaign. The S&P 500 information technology sector is up more than 13% this year after falling more than 28% last year.
“2022 shows that growth outweighs value as some of the pressure that hawkish rhetoric has brought to risk markets eases,” said Keith Buchanan, senior portfolio manager at GLOBALT Investments.
Wall Street is coming off a successful session after the Fed’s announcement on Wednesday 0.25 percent interest rate hike. While the Fed gave no indication of an impending pause in rate hikes, investors were encouraged by comments from Chairman Jerome Powell acknowledging the small increase and easing inflation.
Economists on average expected Friday’s data to have added 187,000 jobs in January, according to Dow Jones estimates. Although, Thursday afternoon Goldman economists said wages could rise by as much as 300,000, a big number that means the Fed will have to do more to cool the economy and control inflation.