US: Stocks rally after tech earnings pass muster
WALL Street stocks enjoyed their best session in weeks on Thursday following strong results from Facebook parent Meta, while banking shares bounced.
All three major indices finished solidly higher, with the tech-rich Nasdaq Composite Index jumping 2.4 per cent to 12,142.24.
The Dow Jones Industrial Average climbed 1.6 per cent to 33,826.16, while the broad-based S&P 500 gained 2.0 per cent to 4,135.35.
Meta surged around 14 per cent as it reported a profit of US$5.7 billion in the first quarter – the latest favourable results by a US tech giant – prompting relief in the market following earlier fears that the sector might sputter.
Art Hogan, an analyst at B. Riley Financial, said investors were also heartened by US gross domestic product data that showed strong consumer spending, even if the headline figure disappointed.
Further “the worst of the regional bank turmoil is likely in the rear mirror,” said Hogan, noting that most US lenders released earnings that were reassuring.
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“It doesn’t feel like the market is expecting some contagion,” Hogan said.
Among individual companies, Caterpillar shares fell 0.9 per cent despite reporting solid earnings, as the market remained unconvinced about the company’s outlook amid recession worries.
Shares of Southwest Airlines dropped 3.3 per cent after it announced it would trim 2023 capacity and slow its hiring plan due to delays in new plane deliveries from Boeing. Boeing rose 1.5 per cent.
Gap advanced 0.5 per cent after the clothing chain disclosed it will cut 1,800 jobs in connection with a corporate reorganisation. AFP
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