Tech stocks continue to rally as earnings reports roll out.
In Friday’s afternoon trading session, the stock market maintained robust gains following a resilient performance, where the Nasdaq composite significantly reduced a large intraday loss from Thursday.
Microsoft Corporation (NASDAQ:MSFT) and Alphabet Inc. (NASDAQ:GOOGL), the parent company of Google, were among the standout performers, though the Dow Jones Industrial Average saw only modest gains as of 3 p.m. ET.
Microsoft shares climbed after the tech giant reported impressive earnings late Thursday, with cloud revenue surging 23% to $35.1 billion. Despite this jump, Microsoft’s stock remains on a downtrend, still positioned below its 50-day moving average.
Alphabet’s stock also experienced a substantial boost following a strong earnings announcement, soaring about 10% early in the day. This surge significantly contributed to the tech rally observed across the board.
Amazon.com Inc. (NASDAQ:AMZN) also made notable moves, with its shares increasing by 2.5% as it reclaimed its 50-day moving average, setting a positive tone ahead of its earnings report next week.
Nvidia Corporation (NASDAQ:NVDA) signaled a strong buying opportunity as it moved decisively above its 50-day moving average, with shares up nearly 6%. The semiconductor sector witnessed a general uplift, with industry groups including chipmakers and chip-equipment manufacturers seeing gains of at least 2%.
Market Overview
The Dow Jones index rose by 0.5%, although it was dampened by a significant 10% drop in Intel Corporation (NASDAQ:INTC) shares. Intel fell behind after reporting disappointing earnings and a less-than-optimistic revenue forecast for the next quarter.
In the energy sector, Chevron Corporation (NYSE:CVX) faced some pressure despite beating earnings expectations as its revenue fell short. Exxon Mobil Corporation (NYSE:XOM), similarly, saw a 4% decline after mixed financial results. Both stocks are major contributors to the Energy Select Sector SPDR Fund (NYSEARCA:XLE), which dropped by 1%.
Meanwhile, West Texas Intermediate crude oil futures were slightly up, trading at around $84 a barrel.
Nasdaq’s Significant Recovery
The Nasdaq composite’s overall performance was bolstered by a 2.2% gain, a recovery following a previous session’s cut in losses from 2.3% to less than 1%. The Nasdaq 100 also saw an uplift, adding 1.6%.
In the Nasdaq 100, other strong performers included Datadog Inc. (NASDAQ:DDOG), which is attempting to emerge from a downtrend.
In the financial markets, the 10-year Treasury yield decreased by nearly four basis points to 4.67%. This followed a report indicating that the core personal consumption expenditures price index (PCE) rose by 2.8% in March, slightly above the forecasted 2.7%. The PCE index is a critical inflation measure monitored by the Federal Reserve.
S&P 500 and Individual Stock Performances
The S&P 500 advanced by 1.3%, aided by significant gains from ResMed Inc. (NYSE:RMD), which soared over 15% after reporting robust earnings. ResMed is recognized for its medical devices that treat conditions like sleep apnea and chronic obstructive pulmonary disease.
On the New York Stock Exchange, the positive sentiment was reflected in the ratio of advancing stocks to declining ones, which was nearly 3-to-1.
Noteworthy Moves in Growth Stocks
Generac Holdings Inc. (NYSE:GNRC) advanced by 2.5%, clearing a technical resistance level in decent trading volume. Other notable movements included AppLovin Corp. (NASDAQ:APP) and Cava Group Inc. (NASDAQ:CAVA), both of which experienced significant price jumps.
As the market gears up for another earnings-filled week, several stocks are in favorable technical positions, including Quanta Services Inc. (NYSE:PWR) and Ingersoll Rand Inc. (NYSE:IR).
Conversely, DexCom, Inc. (NASDAQ:DXCM) saw a 7% decline following an earnings report that, despite showing strong growth, presented a revenue forecast slightly below expectations.
Featured Image – Freepik
