Source: Yahoo Finance
The stock market closed today on a high note. Indeed, all three major indexes closed on a positive note. The Dow Jones Industrial Average advanced 524.29 points, or 1.57% to close at 33,826.16. The Nasdaq Composite jumped 2.43% to finish at 12,142.24, while the S&P 500 climbed 1.96% to end at 4,135.35. This rally is considered the best day since January for the Dow and S&P 500 and since March for the Nasdaq.
The stock market’s performance today is linked to the surge in the value of tech stocks. Indeed, Meta shares leaped 13.9% after the company reported quarterly revenue that topped expectations and issued an upbeat forecast. Earnings ended at $2.20 per share compared with analysts’ expectations that it would be $2.03 per share. Meta’s revenue topped $28.65 billion vs 27.65 billion by analysts, and the average revenue per user topped $9.62 vs $9.30 excepted by analysts. Meta’s results came after Microsoft and Alphabet topped expectations with reports after the market closed on Tuesday.
Most experts anticipated that the market would close with mixed results due to the release of the economic data about the macroeconomy which shows that growth slowed down. However, the market thrived today, which suggests to some investors that the Federal Reserve could soon wrap its tightening campaign. The Federal Reserve is slated to announce its latest policy decision next week.
The U.S. economy grew 1.1% in the first quarter of 2023, while economists polled by Dow Jones forecasted an expansion of 2%. The report also showed stronger-than-expected inflation, with prices increasing 4% compared with a consensus estimate of 3.7%. In the financial sector, the pressure on First Republic is mounting as the stock plunged 29.75% on Wednesday. The bank is pursuing “strategic options,” it said on Monday, after losing more than half $100 billion in deposits during the March banking turmoil. After losing more than half its market capitalization over the last two trading sessions, First Republic stock rallied roughly 11% in intraday trading on Thursday.
The Dow and S&P 500 are slightly above their flatlines for the week-to-date, while the Nasdaq has gained 0.6% over the same period. But the Nasdaq has lagged on a month-to-date basis, shedding 0.7% while the Dow and S&P 500 rose 1.7% and 0.6%, respectively.