Strong earnings reports from tech giants Alphabet Inc. and Microsoft Corp. have led to a wave of positive sentiment in the market this week. The PCE inflation report showed higher-than-expected annual readings, but did not impact expectations for Fed rate cuts.
The S&P 500 and Nasdaq 100 both posted gains, putting them on track for their best week in months. In a remarkable turn of events, the Magnificent Seven companies gained a whopping $400 billion in market cap in just one day, offsetting losses seen earlier in the week.
While small caps and the tech sector performed well, the energy sector lagged behind. Treasury yields slightly softened but remain at elevated levels. Gold and oil prices held steady, while Bitcoin saw a slight dip.
Major US indices and ETFs all saw gains on Friday, with Alphabet Inc. stealing the spotlight with a 10% increase in stock price after beating earnings and revenue estimates. Microsoft Corp. also saw a rise of 2.5% after reporting better-than-expected results.
Other tech companies like Amazon.com Inc. and Nvidia Corp. also experienced movement in response to their earnings reports, with mixed results.
Overall, investors are feeling optimistic as strong earnings reports continue to buoy the market, despite some concerns over inflation. As the week comes to a close, the market appears to be in a positive position moving forward.
