US stocks rally after tech earnings pass muster
Wall Street stocks enjoyed their best session in weeks on Thursday following strong results from Facebook parent Meta, while banking shares bounced. All three major indices finished solidly higher, with the tech-rich Nasdaq jumping 2.4 percent to 12,142. The Dow Jones climbed 1.6 percent to 33,826, while the S&P 500 gained 2.0 percent to 4,135. Meta surged around 14 percent as it reported a profit of $5.7 billion in the first quarter – the latest favorable results by a US tech giant – prompting relief in the market following earlier fears that the sector might sputter. Art Hogan, an analyst at B. Riley Financial, said investors were also heartened by US gross domestic product data that showed strong consumer spending, even if the headline figure disappointed. Further "the worst of the regional bank turmoil is likely in the rear mirror," said Hogan, noting that most US lenders released earnings that were reassuring. "It doesn't feel like the market is expecting some contagion," Hogan said. Among individual companies, Caterpillar shares fell 0.9 percent despite reporting solid earnings, as the market remained unconvinced about the company's outlook amid recession worries. Shares of Southwest Airlines dropped 3.3 percent after it announced it would trim 2023 capacity and slow its hiring plan due to delays in new plane deliveries from Boeing. Boeing rose 1.5 percent. Gap advanced 0.5 percent after the clothing chain disclosed it will cut 1,800 jobs in connection with a corporate reorganization. (AFP)