Tech Climbs in After Hours on Strong Earnings – US Market Wrap

A rally in some of the world’s largest technology companies lifted US stocks, as investors awaited earnings from three megacaps and Friday’s jobs report.

A $244 billion exchange-traded fund tracking the Nasdaq 100 (QQQ) rose after the bell, building on gains in regular trading. Meta Platforms reported revenue growth that exceeded expectations, as well as the payment of its first quarterly dividend of 50 cents per share and the authorization of an additional $50 billion in buybacks. Amazon reported a strong profit and provided an operating income outlook that exceeded expectations.
Apple shares sunk postmarket, as their Greater China revenue fell short of expectations, despite strong headline earnings numbers.

Stocks rebounded Thursday as Wall Street prepared for Friday’s jobs report. Traders also kept an eye on regional banks, as New York Community Bancorp fell again, while Citizens Financial Group Inc.’s CEO said the issues that led to the collapse of some lenders last year are largely resolved. Oil prices fell after reports that talks to halt the Israel-Hamas conflict and free civilian hostages were progressing.

In the run-up to the US government’s jobs figures, a report revealed that unemployment claims unexpectedly rose to a two-month high. Surveyed economists, who predicted that payrolls would rise by approximately 185,000 in January, following a 216,000 increase in December. Separate data showed that labour productivity increased rapidly, while a measure of US factory activity rose to its highest level in 15 months.

Swap contracts that predict the outcome of future Fed meetings are pricing in approximately 150 basis points of easing this year, with the first move fully priced in for May.