Euphoria on Wall Street: Meta fireworks drive tech rally

euphoria on Wall Street
Meta fireworks fuel Tech Rally

Brilliant business figures at the Facebook group Meta and the US Federal Reserve’s slowed rate of interest rate hikes are causing a rush for tech stocks on Wall Street. The Dow Jones suffered from the euphoria.

Good figures and a convincing outlook from the Facebook parent company Meta have again accelerated the recovery rally in tech stocks in the USA. While the meta stocks jumped more than a quarter at the top, the technology stocks widened Nasdaq 100 at times increased its profits to more than four percent. It thus continued the significant price gains from the previous day as a result of the US interest rate decision. Before the results that were expected from the industry giants Amazon, Alphabet and Apple after the stock market closed, investors did not give up too much over the course of the year. In the end he came Nasdaq 100 Index with 12,803.14 points for an impressive increase of 3.56 percent. For the first time since August, the technology-heavy barometer made it back above the 12,800 point mark.

Nasdaq 100 12,803.14

Investors’ interest in standard values ​​suffered from the tech euphoria: the leading index Dow Jones Industrial even fell slightly by 0.11 percent to 34,053.94 points. The broad one S&P 500 after all, there was an increase of 1.47 percent to 4179.76 points. It was also enough for him for the highest level since August. After a sluggish first half of the week, the monetary policy signals from the US Federal Reserve had given the tech stocks, which had been particularly battered in 2022 due to the sharp rise in interest rates, a lot of fresh impetus the day before. The Nasdaq 100 is already up around 17 percent in the still young stock market year, while the Dow has gained only 2.7 percent at the same time.

Zuckerberg announces savings

The Fed had again slowed its pace of interest rate hikes in the middle of the week. However, the statements made by Fed Chair Jerome Powell were decisive. Although he held out the prospect of further interest rate hikes to curb high inflation, he also gave the impression that the tightening of monetary policy was likely to be completed soon. On the Nasdaq stock exchange, however, the positively received signals from Meta were now considered the decisive price driver. The Facebook parent company performed better than expected in the past quarter, despite another decline in sales. In addition, Facebook founder and Meta boss Mark Zuckerberg promised further cost reductions.

Meta
Meta 188.77

During Meta came to a price jump of 23 percent, the shares of Nasdaq 100 could Align Technology even outshine this with an increase of more than 27 percent. The manufacturer of splints for correcting misaligned teeth also exceeded expectations.

In the Dow at the front was the tech sector Microsoft with a price increase of 4.7 percent. However, the strength of the tech stocks contained there was not enough to support the leading index, because on the other hand there was the weight of falling stocks, for example from the healthcare sector. A disappointing business outlook for the pharmaceutical company Merck & Co caused its shares to slip 3.3 percent.

Microsoft
Microsoft 264.60

Before the quarterly reports expected after the market close, which should help decide whether the sector rally can continue, Apple, Amazon and Alphabet were also among the big gainers in the tech industry. The stocks of the three giants rose between 3.7 and 7.4 percent. Away from the tech stocks, the stocks of the Post competitors performed well FedEx by 6.1 percent.

The focus was also on interest rate decisions in Europe, where hopes of an early end to the cycle of interest rate hikes are also increasing. the Euro was pressured by it with last paid $1.0911. The ECB had set the reference rate even higher at 1.0988 (Wednesday: 1.0894) dollars.

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