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Wall Street: Tech “party” with new records for S&P 500 and Dow

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The index gained 1.1% to close at 4,958.61 points, surpassing the previous record of 4,927.93 points reached on Monday

Wall Street: Tεχνολογικ«π ρτι» με νεα ρεκόρ για S&P 500 και Dow

photo. Reuters

The S&P 500 closed today's session at a new all-time high, as better-than-expected quarterly results from tech giants including Meta, the parent company of Facebook, gave new impetus to technology, as well as January US employment data was highly buoyant.

The index rose 1.1% to close at 4,958.61 points, surpassing the previous record of 4,927.93 points reached on Monday. The Dow Jones gained 134.58 points, or 0.4%, to 38,654.42, also marking a new all-time high. The Nasdaq closed at 15,628.95, up 1.7%.

Meta shares rose more than 20% after the Facebook parent group's quarterly profit and revenue beat analysts' forecasts. The group also announced that it will pay investors the first quarterly dividend in its history while also repurchasing $50 billion worth of shares. Amazon's stock also rose by 8%, after its better-than-expected earnings.

A rally in tech stocks distracted investors from strong jobs data, which is curbing markets' bets on immediate rate cuts. For this reason, the yield on the US 10-year government bond rose 17 basis points to 4.02%, after data showed that 454,000 new jobs were created in the first month of the year, much more than the 185,000 analysts had predicted.

“Today's big rally in stocks is proof that technology can be independent of the rhetoric of interest rates and move more on the basis of fundamentals. That means tech stocks could strengthen further regardless of the path of interest rates,” says Certuity's Dylan Cramer.

The data also showed more-than-expected wage growth, as wages rose 4, 5% on an annual basis against forecasts for 4.1%. This means rate cuts are now being pushed to May or the second half of the year.

However, the market reacted more mutedly to Apple's results. Its stock closed flat after the company's sales in the Chinese market fell 13% in the fourth quarter of 2023.

On a weekly basis, the S&P 500 rose 1.4%, the Nasdaq 1.7% and the Dow 1.5%. This is the fourth consecutive week of gains for the three major stock indexes after a sluggish start to 2024.

Source: www.kathimerini.com.cy

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