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 1.4%, or its best level since August. Meanwhile, the tech-heavy Nasdaq composite advanced about 3% to its highest level since September. The gains came ahead of a trio of big tech results after Bell in Apple, Amazon and Alphabet.
Meanwhile, the Dow Jones Industrial Average fell 102 points, or about 0.3%. Key code pulled Merck Despite beating estimates on the top and bottom lines, the drug company posted a weak outlook in its latest earnings results.
Meta increased by more than 25% 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 6% Amazon Up more than 6%. Apple Shares gained more than 3%.
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 14% this year after a more than 28% decline 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.
Traders await the latest jobs report, which will provide more insight into the labor market. Any signs of cooling could suggest to investors that further rate hikes are not on the table.