New York Wall Street experienced a relief rally on Thursday, buoyed by strong earnings reports from Microsoft and Meta. The positive results from these major tech companies offered a counterpoint to concerns raised by recent economic data showing a contraction in the U.S. GDP for the first quarter of 2025.
Microsoft's earnings exceeded expectations, driven by growth in its cloud computing division, Azure. Meta, the parent company of Facebook and Instagram, also reported better-than-anticipated earnings, citing increased advertising revenue and user engagement.
The Dow Jones Industrial Average rose approximately 80 points, reflecting the positive sentiment among investors. Analysts noted that the strong performance of these tech giants helped to alleviate some of the anxiety surrounding the broader economic outlook. While the GDP figures indicated a slowdown, the robust earnings from Microsoft and Meta suggest that certain sectors of the economy remain resilient.
However, some experts caution that the rally may be short-lived. Concerns about inflation, rising interest rates, and potential future economic slowdowns continue to weigh on investors' minds. The market's reaction to upcoming economic data releases and further earnings reports will be closely watched in the coming weeks.
CBS News contributor J.D. Durkin noted that the market's focus has shifted, at least temporarily, from macroeconomic worries to company-specific performance. He added that the long-term sustainability of the rally will depend on whether other sectors can demonstrate similar strength and resilience.
Tech Earnings Fuel Wall Street Rally After GDP Dip
Wall Street saw a boost Thursday following positive earnings reports from tech giants Microsoft and Meta. Investors reacted favorably, driving stock prices higher. This comes after recent data revealed the U.S. economy contracted in the first quarter of 2025. The Dow Jones Industrial Average climbed, signaling renewed optimism in the market.
Source: Read the original article at CBS