U.S. stocks picked up momentum in the final hour of trading as tech led the broader averages higher.
The Nasdaq Composite jumped 3%, while the S&P rose 2.5%. The Dow Jones Industrial Average gained 1.8% or over 600 points. Investors discounted a surprise decline in 1Q GDP of 1.4%.
1Q SHRINKS BY 1.4% UNEXPECTEDLY
|I:DJI||DOW JONES AVERAGES||31730.3||-103.81||-0.33%|
|I:COMP||NASDAQ COMPOSITE INDEX||11370.961528||+6.73||+0.06%|
FACEBOOK PARENT META’S SHARES JUMP DESPITE REVENUE SLOWDOWN
Facebook’s parent company Meta, soared following its latest quarterly earnings, which topped Wall Street’s estimates.
|FB||META PLATFORMS INC.||191.24||+2.50||+1.32%|
McDonald’s earnings also positive. Higher U.S. menu prices and easing COVID-19 restrictions elsewhere helped McDonald’s offset troubled markets like China and Russia in the first quarter. Revenue rose 11% to $5.66 billion in the January-March period, topping Wall Street expectations of $5.57 billion, according to analysts polled by FactSet.
Caterpillar shares lagged even as first-quarter sales climbed with demand for construction equipment surging in the face of supply chain challenges that continue to plague businesses from car and phone makers to grocery stores. Sales rose 14% to $13.59 billion, topping the $13.5 billion that analysts surveyed by Zacks Investment Research were looking for. Higher prices also fueled revenue numbers.
Twitter reported a mixed quarter and declined to provide a forecast citing its pending acquisition by Elon Musk.
After the bell watch for results from Apple and Intel.
Oil prices moved higher Thursday as markets remain concerned about falling demand, especially in China due to COVID-19 restrictions. U.S. West Texas Intermediate crude rose to $105.36 per barrel. Brent futures, the global benchmark, moved up to $107.59.
In economic news, the Labor Department reported weekly jobless claims matched last week coming in at 180,000 holding at pre-pandemic levels. It would also mark the 10th week that claims came in below 200,000. Continuing claims, which track the total number of unemployed workers collecting benefits, were 1.408 million.
In cryptocurrencies, Bitcoin crossed back above $40,000.
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The Associated Press contributed to this report.