Stocks rally on Wall Street as technology giants rebound
NEW YORK – Major stock indexes on Wall Street notched their biggest gains in more than six weeks Thursday, as technology companies clawed back some of the ground they had lost recently.
The S&P 500 rose 2.5%, with roughly 85% of the stocks in the benchmark index closing higher. The Dow Jones Industrial Average climbed 1.8% and the tech-heavy Nasdaq ended 3.1% higher.
The gains erased weekly losses for the indexes, though they are all still headed for a dismal monthly finish after sliding for much of April.
This week has been especially turbulent as investors review a heavy batch of corporate earnings from major tech companies, industrial firms and retailers.
“Volatility is elevated across the board,” said Zach Hill, head of portfolio management at Horizon Investments. “We had some weakness last week and the beginning of this week, and we’re seeing some of that reverse.”
The S&P 500 rose 103.54 points to 4,287.50, while the Dow climbed 614.46 points to 33,916.39. The Nasdaq picked up 382.59 points to 12,871.53.
Smaller company stocks also rallied. The Russell 2000 rose 33.91 points, or 1.8%, to 1,917.94.
Big Tech and communications companies have been behind much of the oscillations in the broader market as their pricey stock values have more force in pushing the major indexes up or down.
Apple rose 4.5% in regular trading. It rose another 2.3% in after-hours trading after reporting strongerthan-expected results and increasing its dividend and stock repurchase program.
Chipmaker Qualcomm jumped 9.7% after easily beating Wall Street’s profit estimates. Facebook’s parent company Meta surged 17.6%, the biggest gain among S&P 500 stocks, after it beat Wall Street’s firstquarter profit forecasts and reported an encouraging
increase in daily users.
Encouraging financial reports helped support gains for several other major companies. McDonald’s rose 2.9% following a strong earnings update. Southwest Airlines rose 2.1% after reporting solid revenue and telling investors it expects a profitable year as travel demand returns with the pandemic fading.
Bond yields gained ground. The yield on the 10-year Treasury rose to 2.83% from 2.81%.
The U.S. Federal Reserve is set to aggressively hike rates as it steps up its fight against inflation. The chair of the Fed has indicated the central bank may hike short-term interest rates by double the usual amount at upcoming meetings, starting next week. It has already raised its key overnight rate once, the first such increase since 2018.
The Commerce Department on Thursday reported that the U.S. economy shrank last quarter for the first time since the pandemic recession struck two years ago.
But the report showed that consumers and businesses kept spending, despite rising inflation, in a sign of underlying resilience.
Gold for June delivery rose $5.50 to $1,891.30 an ounce. Silver for July delivery fell 33 cents to $23.18 an ounce and July copper fell 5 cents to $4.43 a pound.
The dollar rose to 130.91 Japanese yen from 128.35 yen. The euro fell to $1.0504 from $1.0562.