Wall St rallies as earnings season boost offsets economy worries
The tech-heavy Nasdaq led a Wall Street rally on Thursday as a strong quarterly report from Facebook parent Meta Platforms Inc overshadowed concerns over slowing U.S. economic growth.
Shares in Meta closed up 13.9% after touching their highest level in more than a year after the company forecast quarterly revenue above estimates, and CEO Mark Zuckerberg said AI was increasing traffic to its services and boosting ad sales.
As a result the S&P 500 communication services index ended up 5.5% for its biggest one-day percentage gain since February 2022. Along with Meta, it got a boost from Alphabet Inc, which reported upbeat results earlier this week, while Comcast rose 10.3% after its financial results impressed on Thursday.
“Facebook earnings last night and more broadly largecap earnings continue to surprise to the upside,” said Mona Mahajan, senior investment strategist at St. Louis based Edward Jones.
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