Wall Street rallies after strong results from Meta Platforms
STORY: A tech-fueled surge on Wall Street Thursday. Shares in Facebook-parent Meta Platforms touched their highest level in more than a year after the company forecast quarterly revenue above estimates.
That contributed to gains across the board for stocks. The dow rose more than 1-and-one-half percent. The S&P 500 added 2-percent and the Nasdaq jumped nearly 2-and-one-half percent.
Investors also digested a report that showed the economy grew half as much as economists forecast in the first quarter. GDP rose 1-point-1 percent in the first three months of the year.. below the 2-percent estimate. Still, some viewed that as another positive sign for the market. Retirement Planning of America Founder and CEO Ken Moraif explains.
“Today's action is a reflection of investors view that the economy is slowing down and if the economy is slowing down, the Federal Reserve will not need to raise interest rates to the sky and destroy everything that we know. And if that's the case, then profits should be OK, or maybe even good. And that being the case, stock prices will do well in the second-half of the year.”
The Fed meets next week and is expected to hike rates another quarter point though investors don’t expect any more increases after that.
Besides Meta, stocks performing strongly included Ely Lilly. The drug maker rose nearly 4-percent after raising its full-year profit forecast on strong demand for its closely watched diabetes drug Mounjaro, ahead of a decision on its use as a treatment for obesity.
Also, Comcast which ended 10-percent higher after exceeding earnings estimates because of strong demand for broadband services and higher theme park attendance.
