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  • 19 MAIO 2024
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Wall Street ends week higher, driven by technology

The New York stock market closed higher today, with investors relieved by an inflation indicator and the results of Microsoft and Alphabet, which contrast with the disappointing results of Meta.

Wall Street ends week higher, driven by technology
Notícias ao Minuto

23:53 - 26/04/24 por Lusa

Economia Bolsas

The session's final results indicate that the selective index Dow Jones Industrial Average advanced 0.40%, the technological Nasdaq gained 2.03% and the broad S&P500 rose 1.02%.

"The main driving force was the results of the technology sector," commented Steve Sosnick of Interactive Brokers. "The nervousness that Meta had caused the day before has dissipated."

In fact, Alphabet, which closed up 9.97%, and Microsoft (+1.82%) presented their accounts on Thursday, after the close of the stock market session, which showed strong growth in all their activities.

According to several analysts, unlike Meta or Amazon, the other big names in artificial intelligence (AI), both the Mountain View, California-based conglomerate and its Redmond, Washington-based rival, are already showing clear declines in AI in their strongest products.

Alphabet even announced the payment of its first dividend in its history.

On Wednesday, Meta had countered Wall Street's expectations by announcing lower-than-expected performance for the quarter and higher-than-expected capital expenditures.

Inspired by Alphabet and Microsoft, most of the Nasdaq's large-cap stocks boosted the stock market, as they have done for most of the past 18 months.

Thus, Nvidia 'jumped' with a gain of 6.18%, Broadcom advanced 3.84%, a little more than Amazon (3.43%), which reports its figures on Tuesday.

In addition to the enthusiasm for technology, "there was also some relief" after the release of the PCE consumer price index, which indicated a 0.3% monthly increase in prices in March, as expected and as much as in the previous month, according to Steve Sosnick.

Excluding food and energy, the most volatile items, which yield core inflation, the index showed the same 0.3% change as economists expected.

Investors focused on the monthly change and downplayed the annual inflation rate, which was 2.7%, slightly above the 2.6% economists had forecast.

Although price developments continue to be higher than Federal Reserve (Fed) officials would like, "the number was enough to calm nerves," particularly in the bond market, Steve Sosnick also noted.

Indeed, the yield on 10-year Treasury bonds eased to 4.66% from 4.70% the previous day.

Overall, however, Sosnick expects the stock market to trade on a day-to-day basis, with no clear trend.

And next week promises to be busy, with a Fed meeting on monetary policy on Tuesday and Wednesday, the employment report on Friday, and more corporate earnings, such as Amazon on Tuesday and Apple on Thursday.

Read Also: Wall Street closes down on lower-than-expected GDP growth (Portuguese version)

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