Prime Highlights:
- S&P 500 rises 0.6%, its eighth consecutive gain, following Microsoft and Meta Platforms’ better earnings.
- Carrier Global and Quanta Services dominate the index with significant stock jumps after favorable earnings news.
Key Facts:
- Microsoft stock jumps 7.6% following a quarter victory and an $80 billion infrastructure spend.
- Becton Dickinson stock drops 18.1% on a lowered profit estimate as tariff concerns overhang it.
Key Background
US stock markets also posted strong gains in a spell cast by stunning quarterly profits of leading technology companies. S&P 500 rose by 0.6%, posting eight consecutive days of victory. Nasdaq Composite rose by 1.5%, and Dow Jones Industrial Average rose by 0.2%. The good momentum was mainly caused by strong quarterly reports by Microsoft and Meta Platforms, putting fears of negative effects of tariffs on the tech industry to rest.
Microsoft stocks rose 7.6% as the company managed to surpass quarterly expectations, particularly in the field of cloud computing. Microsoft also made an announcement that it was going to invest $80 billion on infrastructure, which once again created euphoria for the long-term future of the company. Meta Platforms also surpassed the earnings expectations, which once again created mania for the tech sector.
All of the companies were not on the ride, however. Becton Dickinson shares fell 18.1% when it trimmed its earnings projection due to tariff issues. Shares of Eli Lilly also fell, by 11.6% despite when it posted strong sales figures because the company trimmed its earnings projection owing to acquisition price. Qualcomm’s shares fell by 9.0% when it guided below for lower than anticipated sales even when it reported strong quarterly results.
On the positive note, firms such as Carrier Global and Quanta Services had their shares go up substantially. Carrier stock went up 11.6% after the surprise beat and a lift in its year-on-year forecast. Quanta Services also saw its share go up 9.9% on the back of strong results and improved profitability across business segments. These results indicate the broad-based strength of the U.S. equity markets based on good corporate earnings and investor confidence.
