US equities rose on Thursday as Wall Street recovered from a fall in the previous session that sent two of the major indexes into negative territory for the year. The Dow rose +1.63%, the S&P 500 rose 1.86%, and the Nasdaq was 2.95% better off.
Recently stocks have been under pressure after worries of the impact on tariffs on the Chinese economy which has caused a slowdown in profits, rising interest rates, higher bond yields and the upcoming US elections. However in last nights trading session positive earnings guidance from Visa and Microsoft helped push the Dow higher as shares rose 2.8% and 4.7% respectively. Intel also beat analysts’ expectations rising 4.5%.
Investors fled back into tech stocks as the S&P Technology sector rose 3.44 percent rallying from yesterday’s lows coming from gains in Google rising 4.40 percent, Amazon rose 7.09 percent and Twitter rose 15.47 percent. In after-hours trading, both Amazon and Alphabet shares have fallen as the companies missed revenue and guidance misses. Currently Alphabet shares are trading down 3.41 percent and Amazon shares are lower by 7.73 percent. Continuing on theme of poor earnings Advanced Micro Device reported after the close on Wednesday with the stock falling as much as 23% on weak forecasts in extended trading. On Thursday the stock tumbled 15.4 percent but the Philadelphia Semiconductor index rose 2.3 percent, assisted by Xilinx’s 15 percent jump on its strong quarterly report.
The Utilities S&P sector was the only sector finishing in the red as its sharp rise yesterday came to an end as the markets recovered and investor sought out riskier investments. Shares of American Electric Power fell 2.67 percent.
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Chart of the Day: Twitter Inc. (TWTR) daily chart