Wall Street climbs on Big Tech enthusiasm
Timilehin Adejumobi
1 min read
U.S. stocks rose on Tuesday on investors’ renewed enthusiasm for expected earnings reports from megacap technology companies Alphabet (GOOGL.O) and Microsoft (MSFT.O) amid signs of economic resilience.
A survey showed consumer confidence increased to a two-year high in July, amid continued optimism about the labor market despite worries about a recession.
U.S. tech giants are expected to signal an end to a nearly year-long slowdown in their cloud businesses as technology spending and digital ads are likely to pick up.
Results from Alphabet (GOOGL.O) and Microsoft (MSFT.O) are due after the bell. Shares in the owner of Google and the maker of Windows climbed 0.99% and 1.45%, respectively.
Investor fascination with artificial intelligence is a positive influence for megacap tech firms, said Steve Sosnick, chief strategist at Interactive Brokers. “When you have this much enthusiasm for a specific investing theme, you don’t need much of a reason for markets to move. It’s inertia.”
With the U.S. central bank on track for another 25-basis point interest rate hike on Wednesday, policymakers face a choice over how much weight to put on recent economic data.
This report’s information was first seen on REUTERS; to read more, click this link.
