Stocks finished Thursday higher as strong results from Meta Platforms boosted tech-related names.
The Dow Jones Industrial Average advanced 524.29 points, or 1.57%, to close at 33,826.16. The Nasdaq Composite jumped 2.43% to finish at 12,142.24, while the S&P 500 climbed 1.96% to end at 4,135.35. It was the best day since January for the Dow and S&P 500 and since March for the Nasdaq.
Meta shares leapt 13.9% after the company reported quarterly revenue that topped expectations and issued an upbeat forecast. Several analysts hiked their price targets following the release. Shares of other tech-related names such as Amazon, Alphabet, Microsoft and Apple also popped.
“The market was waiting with bated breath for Big Tech,” said Quincy Krosby, chief global strategist at LPL Financial. “Across the board, it hasn’t disappointed, and the market needed that.”
Stocks rose despite weaker-than-expected GDP data, which may suggest to some investors that the Federal Reserve could soon wrap up its tightening campaign. The Fed is slated announce its latest policy decision next week.
The U.S. economy grew 1.1% in the first quarter, while economists polled by Dow Jones forecasted an expansion of 2%. The report also showed stronger-than-expected inflation, with prices increasing 4% compared with a consensus estimate of 3.7%.
Honeywell, an industrial bellwether, added more than 4% on the back of a quarterly report that was better than Wall Street expected. Teladoc and Comcast were among the other companies trading higher after releasing earnings reports.
However, Caterpillar, another barometer of the global economy, fell around 0.9% as investors feared a build-up in inventory suggests demand is slowing.
The Dow and S&P 500 are slightly above their flatlines for the week-to-date, while the Nasdaq has gained 0.6% over the same period. But the Nasdaq has lagged on a month-to-date basis, shedding 0.7% while the Dow and S&P 500 rose 1.7% and 0.6%, respectively, since April began.