Facebook fuels S&P 500 to record high close

Facebook fuels S&P 500 to record high close

Facebook Inc rallied 7.3 percent to an all-time high after the world’s largest social network beat quarterly revenue and profit late on Wednesday. While it was its biggest single-day gain in five months and easily contributed the most upside to both the S&P 500 and Nasdaq.

Moreover, the communication services index led the 11 sectors higher with a 2.75 percent gain, boosted by Facebook and Alphabet. Apple Inc dipped 0.07 percent despite late on Wednesday posting sales. And profit ahead of Wall Street estimates on strong iPhone and Mac sales.

While investors are really looking for significantly outsized results, and also outsized guidance as they look ahead to upcoming quarters, said Greg Bassuk chief executive of AXS Investments. We believe a lot of optimism has already been baked into the market, and we are cautioning investors to expect significant volatility.

In extended trade, Amazon jumped 3 percent after reporting quarterly sales. That beat analysts’ expectations as the e-commerce giant. Continued to benefit from the COVID-19 pandemic-driven online shopping boom. Also after the bell, Twitter tumbled 9 percent following its quarterly report, with the company warning about rising costs and slower growth.

U.S. economic growth;

U.S. economic growth accelerated in the first quarter, fueled by massive government aid to households and businesses. While a labor market report showed 5,53,000 people filed for unemployment benefits last week. Compared with 5,66,000 in the prior period.

The Dow Jones Industrial Average rose 0.71 percent to end at 34,060.36 points. While the S&P 500 gained 0.68 percent to 4,211.47. The Nasdaq Composite climbed 0.22 percent to 14,082.55. Volume on U.S. exchanges was 10.5 billion shares, compared with the 9.9 billion full-session average over the last 20 trading days.

Moreover, advancing issues outnumbered declining ones on the NYSE by a 1.08-to-1 ratio on Nasdaq, a 1.19-to-1 ratio favored decliners. The S&P 500 posted 120 new 52-week highs and no new lows. The Nasdaq Composite recorded 150 new highs and 30 new lows. The S&P 500 is now up 12 percent in 2021. While the Nasdaq has gained 9 percent.

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