Wall Street broke new records again – Alphabet rose 10 percent

On Thursday, Wall Street returned to bullish moods, boosted by the good results of technology giants and strong macro figures.

The US economy has remained strong. According to preliminary estimates, the inflation-adjusted gross domestic product grew at an annual rate of two percent in the first quarter. Growth was accelerated by artificial intelligence investments.

Private consumption, on the other hand, grew at a brisk pace in March from the previous month, and private incomes grew stronger than expected in February. The PCE price index, which measures consumer inflation, was in line with expectations in March.

The broad S&P 500 stock index, which tracks large companies, rose by one percent and the technology-focused Nasdaq strengthened by 0.9 percent, setting new closing records at the same time. At the same time, April became the best month for both indices since 2020, notes investment media Barron’s.

The large company index Dow Jones advanced 1.6 percent. The Russell 2000 index, which tracks small companies, rose 2.2 percent.

“As long as the economy continues to grow and companies are able to increase their results, stock prices can rise, even if energy prices and inflation rise,” says Northlight Asset Managementin Chris Zaccarelli for the news agency Bloomberg.

However, the continuation of the stalemate between Iran and the United States and the closure of the Strait of Hormuz may bring setbacks.

Yesterday, Wednesday, four technology giants published their results: Microsoft, Meta, Amazon and Alphabet.

Google’s parent company Alphabet posted a ten percent increase on Thursday. The company’s net sales and operating profit grew clearly faster than analysts’ expectations. The Google Cloud cloud business also grew more strongly than expected.

The social media company Meta, on the other hand, fell by 8.6 percent. Although Meta’s result was better than expected, investors were alarmed by the increase in the company’s investment expenses.

Microsoft fell by 3.9 percent. Amazon eventually climbed 0.8 percent. The chip company that became the world’s most valuable company Nvidia decreased by 4.6 percent.