On Thursday, all three key indices of Wall St. winded down the session sharply higher with the mega-cap tech conglomerates leading the charges ahead of their much-anticipated quarterly earnings’ result, while a series of upbeat economic data including a record 33 per cent surge in US GDPs (Gross Domestic Product) over the third quarter of the year that ended on September 30 had muscled up investors’ morale.
In point of fact, Thursday’s rally in the Wall St. that comes over the heels of a roughly 3 per cent plunge of the US stocks a day earlier, was almost entirely galvanized by the market optimism over major earnings’ report ahead alongside a record quarterly growth in US GDPs over the third quarter of the year.
Wall St. roars back ahead of tech results
In tandem, earlier in the day, the US Commerce Department had told in a statement that the US GDP grew by 33 per cent over Q3, 2020, largely prodded by a $3 trillion pandemic stimulus bill passed on the US Congress in mid-April, which in turn had tuned up the tone of Wall St.
on Thursday and overshadowed concerns of a looming pandemic-led lockdown. Aside from that, a rally of the big-league tech conglomerates had helped US stocks phase out the frets over a strident rise in the pandemic cases.
Citing statistics, on the day’s Wall St. closing bell, the trade-sensitive Dow added 0.52 per cent to 26,659.11 and the benchmark S&P 500 surged 1.19 per cent, while the tech-heavy Nasdaq torrented 1.64 per cent to 11,185.59.
Meanwhile, referring to a raft of affirmative earnings’ report over the third quarter of the year which in effect had prompted investors to downplay the impacts of a dubious November 3 election alongside pandemic-led forced business closures, a chief investment strategist at Inverness Counsel in New York, Tim Ghriskey said on the day’s Wall St.
wrap up, “The earnings season so far has resulted in significant positive earnings surprises. We think that’s helping to fuel today’s rally in anticipation of positive surprises from these companies. ”