US Markets
Friday, April 26th, 2024 4:21 pm EDT
Key Points
- Stocks surged on Friday driven by strong performances from Big Tech companies Alphabet and Microsoft, alongside analysis of fresh U.S. inflation data.
- The broad market index rose by 1.1%, with the Nasdaq climbing 2.1% and the Dow Jones Industrial Average increasing by 0.3%.
- Alphabet’s shares soared over 10% after exceeding first-quarter earnings expectations, marking its best day since July 2015, while Microsoft added 3% on robust fiscal third-quarter results. Additionally, the core personal consumption expenditures reading for March, excluding food and energy, rose 2.8% from a year ago, surpassing the 2.7% expected by Dow Jones.
On Friday, stock markets rallied, with notable gains from tech giants Alphabet and Microsoft following robust earnings reports and as investors analyzed fresh U.S. inflation data. The broad market index surged by 1.1%, while the tech-heavy Nasdaq saw a remarkable climb of 2.1%, and the Dow Jones Industrial Average rose by 0.3%. Alphabet’s shares surged over 10% after exceeding first-quarter earnings expectations, marking its best day since July 2015. Additionally, Alphabet authorized its inaugural dividend and announced a $70 billion buyback. Microsoft also saw a 3% increase on strong fiscal third-quarter results. The favorable core personal consumption expenditures reading for March, surpassing expectations at 2.8%, seemed to further boost stocks. Personal spending rose by 0.8%, outpacing estimates, reflecting continued consumer resilience despite elevated price levels. Despite a prior market downturn due to economic growth slowdown concerns and persistent inflation, optimism prevails. The Dow’s Thursday decline of 375 points was largely attributed to new economic data indicating weaker growth. However, analysts remain optimistic, asserting that rate cuts are unnecessary for the bull market to persist, emphasizing the importance of economic expansion and corporate profit growth. The major indexes are poised for a positive week, with the S&P and Nasdaq on track for their best performances since November. In early trading, market breadth improved, with three stocks advancing for every decline on the NYSE. The rally in copper prices, up over 14% this month, indicates the commodity’s strongest performance since February 2021. Additionally, the University of Michigan’s consumer sentiment index for April showed minimal change, with slight upticks in inflation expectations. Alphabet’s surge reflects its first-quarter performance, with revenue growth at the fastest rate since 2022, highlighting renewed investor confidence in tech giants. Overall, the market’s resilience and positive trajectory suggest continued optimism amidst economic uncertainties.
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