Big Tech, chipmakers power S&P 500, Nasdaq to record highs

Big Tech, chipmakers power S&P 500, Nasdaq to record highs

The and the hit record highs on Thursday on stellar earnings reports, with investors looking past the Federal Reserve’s asset tapering plan as borrowing costs remain low.

The Dow slipped from an all-time closing high hit on Wednesday, dragged down by big banks JPMorgan Chase & Co and Goldman Sachs Group which slipped 1.7% and 2.6% despite steepening of the yield curve. Shares of Qualcomm Inc jumped 11.4% after the chipmaker forecast better-than-expected profit and revenue for its current quarter.

Rival Nvidia Corp also climbed 9.9% to provide the biggest boost to the and Nasdaq, while the Philadelphia SE semiconductor index added 2.1%.

Electronic Arts Inc and rival Take-Two Interactive Software Inc gained 2.9% and 2.3%, respectively, after they boosted their 2021 adjusted sales forecasts on strong gaming boom. Three of the 11 major S&P sectors advanced. Financials and healthcare declined more than 1%. The banks sub-index fell 2.2%.

On Wednesday, a widely expected move by the Fed on announcing its plan to start tapering its monthly bond purchases beginning this month while staying patient on raising interest rates also helped sentiment.

“We have had a very strong earning season and the Fed has followed through on what it was preparing for and investors generally get happy if they get what they expect,” said Randy Frederick, managing director of trading and derivatives for Charles Schwab in Austin, Texas.

“The last time the Fed tapered, it took more than a year for it to hike rates and it looks like that’s what is going to happen going ahead too, with only one-third of the market factoring hikes next year.”

A cheery third-quarter earnings season, coupled with an upbeat commentary about future growth from corporate America, has helped Wall Street largely dismiss concerns around rising prices, supply chain snags and a mixed macro-economic picture.

Data showed the number of Americans filing new claims for unemployment benefits fell to a fresh 19-month low last week. It will be followed by a more comprehensive nonfarm payrolls report on Friday.

At 11:56 a.m. ET, the Dow Jones Industrial Average was down 89.73 points, or 0.25%, at 36,067.85, the S&P 500 was up 11.41 points, or 0.24%, at 4,671.98, and the Composite was up 87.46 points, or 0.55%, at 15,899.04.

Tesla Inc added 1.5% to scale new heights, while other mega-cap technology titans Google-owner Alphabet Inc , and Meta Platforms also moved higher.

Merck & Co rose 2.5% after Britain became the first country in the world to approve its Covid-19 antiviral oral pill jointly developed with Ridgeback Biotherapeutics.

Moderna Inc dropped 18.4% after the vaccine maker cut its full-year sales forecast for its Covid-19 vaccine. Declining issues outnumbered advancers for a 1.15-to-1 ratio on the NYSE and for a 1.36-to-1 ratio on the The S&P index recorded 69 new 52-week highs and four new lows, while the Nasdaq recorded 183 new highs and 25 new lows.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link