Apple’s rally fuels rally in tech stock, lifts U.S. stocks

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Strong results from Apple boosted US stocks, thwarting concerns of a major tech slowdown after disappointing results earlier in the week

Mladen ANTONOV

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RECASTS, UPDATES with US close, Date CHANGES

Tech stocks were back on Friday after strong results from Apple, pushing the Nasdaq up nearly 3% and adding to weekly gains.

Apple, the largest company by market value, soared nearly 8% after reporting higher profits despite weaker-than-expected iPhone sales.

Apple’s surge helped offset a comparable decline in Amazon shares on a disappointing holiday quarter forecast and added to buying momentum on Wall Street after a mixed day on global markets and a decline oil prices.

“The stock market showed impressive resilience today,” observed Briefing.com after the Dow’s sixth consecutive positive session.

Apple’s gains have helped boost big tech companies such as Microsoft and Google’s parent Alphabet, which were punished earlier in the week in a pullback investors feared could mark a negative turn. major for tech giants.

Art Hogan, an analyst at B. Riley Financial, said tech stocks benefited from an “oversold bounce” on Friday, adding that semiconductor stocks were boosted by Facebook parent Meta’s plan. , aimed at boosting investment in the metaverse.

Stocks have also been boosted in recent sessions by hopes that the Federal Reserve will soon moderate its policies to counter inflation.

Markets largely ignored mixed economic data from the United States which showed persistent inflation but also an increase in household spending.

In Europe, the German economy grew unexpectedly in the third quarter, but slowing growth in France and Spain heightened fears that high inflation and an energy crisis could tip the region into recession.

“Today’s positive growth data is a welcome surprise. However, this does not mean that the German economy will be able to prevent a recession,” said ING economist Carsten Brzeski.

Elsewhere, the yen was down against the dollar after Japanese Prime Minister Fumio Kishida said the country would spend $260 billion on a stimulus package to cushion the weak economy.

The yen has plunged to a 32-year low against the dollar in recent weeks as Japan’s central bank refused to raise interest rates despite soaring inflation fueled by soaring energy prices.

“The Japanese yen is again the worst performer today after the Bank of Japan kept monetary policy unchanged,” said market analyst Michael Hewson at CMC Markets.

New York – Dow Jones: UP 2.6% to 32,861.80 (closing)

New York – S&P 500: UP 2.5% to 3,901.06 (closing)

New York – Nasdaq: UP 2.9% to 11,102.45 (closing)

London – FTSE 100: 0.4% drop to 7,047.67 (closing)

Frankfurt – DAX: UP 0.2% to 13,243.33 (closing)

Paris – CAC 40: UP 0.5% to 6,273.05 (closing)

EURO STOXX 50: UP 0.2% to 3,613.02 (closing)

Tokyo – Nikkei 225: 0.9% decline to 27,105.20 (closing)

Hong Kong – Hang Seng Index: DOWN 3.7% to 14,863.06 (closing)

Shanghai – Composite: DOWN 2.3% to 2,915.93 (close)

Euro/dollar: UP at $0.9967 against $0.9965 on Thursday

Pound/dollar: UP to $1.1618 from $1.1567

Dollar/yen: UP to 147.46 yen from 146.27 yen

Euro/pound: DOWN to 85.77 pence vs. 86.11 pence

West Texas Intermediate: 1.3% drop to $87.90 a barrel

North Sea Brent: 1.2% down to $95.77 a barrel

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