By Yasin Ebrahim
Investing.com -- The S&P 500 rallied Friday, as a surge in Apple on “solid” quarterly results pushed tech higher offsetting a climb in Treasury yields.
The S&P 500 rose 2.5%, the Dow Jones Industrial Average gained 2.6% or 828 points, and the Nasdaq was up 2.9%.
Apple (NASDAQ:AAPL) rose more than 7% after its third-quarter results topped estimates, lifting the broader tech sector in what has been a “horror show week for Big Tech earnings [this week],” Wedbush said in a note.
“iPhone demand was relatively strong despite the macro with a heavy iPhone 14 Pro mix seen in the quarter,” Wedbush added, though cut its price target on the tech giant to $200 from $220.
Amazon.com (NASDAQ:AMZN), meanwhile, moved off session lows but remained more than 8% lower after its third-quarter revenue fell short of estimates. “The Q4 ’22 operating income guidance came in about $1bn lower than expected at the high end of the range,” Goldman Sachs said in a note.
Tech was also helped by an Intel-led (NASDAQ:INTC) jump in chip stocks after the chipmaker’s quarterly results topped Wall Street expectations and it outlined plans to cut costs over the coming years.
The strong end to the week for tech comes even as the U.S. 10-year Treasury yield crept back up above 4% despite economic data showing a slowdown in inflation encouraged further bets on less hawkish Federal Reserve monetary policy action.
The core personal consumption expenditures (PCE) price index, the Fed’s preferred inflation measure, which excludes food and energy, rose 5.1% in the 12 months through September, slower than the 5.2% predicted.
Consumer spending, meanwhile, remained robust, growing faster than expected in September, underpinned by falling gas prices.
Oil majors Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) led the charge higher in energy after the duo reported better-than-expected quarterly results.
In other news, Elon Musk completed his $44 billion deal to take Twitter Inc (NYSE:TWTR) private, with the billionaire hinting at the completion in a tweet Thursday night saying, “the bird is freed.”