FX.co ★ Tech Stocks Leading Rally On Wall Street On Upbeat Earnings

On Friday, stock markets bounced back from their previous downward trend, with technology stocks leading the surge and boosting the Nasdaq in particular. At its peak, the Nasdaq surged by 299.78 points or 1.9 percent to reach 15,911.54. The broader S&P 500 also increased by 50.65 points or 1.0 percent to hit 5,099.07, while the narrower Dow grew a modest 125.98 points or 0.3 percent, ending the day at 38,211.78.

This rally was driven in part by positive responses to recent earnings reports from key tech companies. Google's parent company, Alphabet, saw its share prices rise 9.9 percent after first quarter results outperformed expectations and a first-ever dividend along with a $70 billion stock buyback was authorized. Microsoft's third quarter results also surpassed projections, causing its stock to jump 2.3 percent.

However, Intel's stocks sharply dipped by 11.3 percent. While their first quarter earnings topped estimates, they provided underwhelming guidance, thereby suppressing the Dow's climb.

Meanwhile, market traders responded favorably to inflation readings from the Commerce Department, indicating that U.S. consumer prices for March aligned with economist predictions. The consumer price index rose by 0.3 percent in March, commensurate with February's increase and meeting economist expectations.

The report also noted that the annual rate of consumer price growth quickened to 2.7 percent in March from 2.5 percent in February. Core consumer prices saw a growth rate constant at 2.8 percent.

Chris Zaccarelli, Chief Investment Officer for Independent Advisor Alliance, commented on the steady inflation, "Given the elevated levels of inflation - and this is the new normal for 2024 - the market is going to need to get over hopes for Fed rate cuts." He remains optimistic about the market, stating, "We're still optimistic on the market, however, as we believe that rate cuts aren't necessary for the bull market to continue."

Significant gains were made in the software stocks sector, in particular, with Microsoft leading the way. Other sectors that registered robust performance include semiconductors, housing stocks, networking, retail and commercial real estate stocks. Conversely, oil producer stocks bucked the trend due to disappointing earnings news from Exxon Mobil.

In international markets, the Asia-Pacific region, including Japan's Nikkei 225 Index and Hong Kong's Hang Seng Index, saw a general uptrend. Europe's major markets also exhibited stronger performance. Meanwhile, the bond market saw treasuries recover after slipping in the past two sessions. Consequently, the yield on the benchmark ten-year note dropped 5.3 basis points to 4.653 percent.