S&P 500 reaches 5-month high as tech shares rally
The S&P 500 gains off the back of Meta, Apple, Amazon and Alphabet’s latest results.
The S&P 500 and the Nasdaq ended higher on Thursday and are now within touching distance of 5-month highs off the back of strong company announcements and a Federal Reserve which is slowing the rises in the official cash rate.
Thursday’s rally saw the S&P 500 gain another 1.47%.
Unsurprisingly, the tech-heavy Nasdaq composite outperformed the other exchanges soaring 3.25%.
At the same time, the Dow Jones underperformed and was the only exchange not to gain during last night’s trading.
Why tech shares are outperforming overnight
The US tech sector had a good night trading, off the back of better-than-expected results.
US social media giant Meta led the charge, surging 23% after beating its revenue predictions for the fourth quarter.
The strong day’s trading saw the company have its best day since 2013 with investors getting excited about the company announcing a US$40 billion share buyback.
According to eToro’s analyst Josh Gilbert, Meta rounded out the year with revenues of US$32.17 billion, above an expectation of US$31.65 billion.
“The solid result was driven by robust advertising revenue that comes with no surprise given that Facebook reached 2 billion users at the end of last year, an eye-watering number that will continue to attract advertising dollars, even if spending is slowing,” he said.
However, the owner of Facebook is still losing money on its Metaverse project.
Meta was not the only tech giant to outperform.
Amazon shares were up 7.4%, while Alphabet shares were up 7.3%.
It was also a strong day for Apple, with shares up 3.7%, despite missing profit guides for the first time in 7 years.