Both the S&P 500 and Nasdaq US indices hit record levels on Thursday after stellar earnings from Apple and Facebook powered a rally in tech stocks.
A new report from CNBC explains that stocks were higher Thursday after economic data pointed to a brisk recovery for the US economy in the first quarter and earnings reports from Apple and Facebook, among other tech stocks.
“We expected tech earnings to come in strong and they comfortably cleared the high bar which is extremely impressive. But also, it is another sign just how quickly this economy continues to roar back,” said Ryan Detrick, chief market strategist at LPL Financial.
Apple rose 0.5 percent Thursday after the Cupertino company posted fiscal second-quarter earnings that trounced Wall Street estimates and boosted its stock buyback program by $90 billion USD as post-pandemic demand in China powered a massive surge in iPhone sales.
Apple said iPhone revenue soared 65 percent from last year to $47.94 billion USD, well ahead of analysts’ forecasts of $41.7 billion, thanks to what CEO Tim Cook called “strong demand for the iPhone 12 family.”
Facebook’s revenue jumped 48 percent, driven by higher-priced ads, sending its stock up as much as 6.5 percent and to a record high.