US stocks rallied on Friday, as Apple earnings beat helped stocks weather a week Wall Street missed out on Big Tech.
S&P 500 (^ GSPC) increased by 2.5%. Dow Jones Industrial Average (^ DJI) rose more than 800 points, or 2.6%, to a two-month high, as it also recorded a fourth straight week of gains and the best week of the year. The tech-heavy Nasdaq Composite (^ IXI) increased by 2.9%. The moves come even as Treasury yields climb back above 4%.
On the economic data front, the Federal Reserve’s preferred inflation measure shows that the price is still hot across the US economy.
The Core Personal Expenditure Price Index (PCE) The Commerce Department said on Friday it was up 0.5 percent in September from the previous month, down slightly from August’s 0.6 percent gain. The index showed a 5.1 percent increase over the same period. period last year, accelerating from the annual 4.9% seen in August. Economists surveyed by Bloomberg expected gains of 0.5% and 5.2%, respectively.
Personal income rose 0.4 percent month-on-month and consumer spending 0.6 percent, compared with economists’ estimates of a 0.4 percent increase for each measure.
Amazon (AMZN) shares rallied nearly 7% on Friday after the e-commerce giant’s release fourth quarter sales guide missed Wall Street estimates and delivers disappointing Q3 results. The debacle marked the second straight quarter in which the company’s weak finances drove the company’s stock price down double digits.
But Apple (AAPL) provide a “dim light in another dark earnings season,” outperformed its big Tech peers as they struggled with macroeconomic barriers due to inflation, rising interest rates and currency fluctuations. Company reports record sales but misses analyst predictions in main categories like iPhone and services. Shares rose about 8%, marking the tech giant’s best day since July 2020.
Elsewhere in the tech spotlight, Elon Musk has taken ownership of Twitter (TWTR) after pulling out bid to buy social media platform was completed by the end of Thursday. The Tesla CEO fired top executives after completing a $44 billion acquisition of the company and announced plans to lift the lifetime ban from the site.
A busy start to Friday for investors was also marked by other reports from energy group Exxon Mobil (XOM) and Chevron (CVX), both reported earnings and revenue that topped Wall Street estimates – lifting shares of each name by about 2.9% and 1.1%, respectively.
SoFi’s head of investment strategy Liz Young said in a note that she expects further downside corrections and other notable missteps this quarter and beyond, potentially. will challenge the market further. However, Young notes that on the upside, this means investors can tick the “earnings” box.
“As we get through that process, next, we will likely see the economy slide in a slightly more dramatic fashion than we’ve seen so far,” Young said. “There have been some classic recession warning signs in place and the risks that remain ahead are bringing the possibility of an actual recession closer.”
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc