Tech giants Alphabet Inc. and Microsoft Corp. reported strong earnings, boosting market sentiment and alleviating concerns of stagflation. The S&P 500 and Nasdaq 100 both saw gains for the week, with the S&P 500 up 2.8% and the Nasdaq 100 up over 4%.
The Magnificent Seven companies added a combined market cap of $400 billion in a day, offsetting losses from Thursday. Small caps also saw gains, with the iShares Russell 2000 ETF up 1%. However, the energy sector underperformed due to disappointing results from Exxon Mobil Corp. and Chevron Corp.
Despite this, major US indices including the Nasdaq 100, S&P 500, Russell 2000, and Dow Jones all saw gains. Top stock movers included Alphabet Inc. soaring 10%, Microsoft Corp. rising 2.5%, Amazon.com Inc. up 4%, Nvidia Corp. rising 6%, and Intel Corp. falling 10%.
Overall, positive earnings reports from tech giants and other companies helped drive market gains and restore positive sentiment among investors. Treasury yields softened slightly but remained elevated, while gold and oil prices held steady. Bitcoin softened below $64,000 amid the positive market sentiment.
The strong performance of major companies and indices demonstrates the resilience of the market in the face of recent economic uncertainties. Investors are optimistic about the future outlook and the potential for continued growth in the market.
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