WASHINGTON (dpa-AFX) - Stocks have moved sharply higher during trading on Thursday, with the major averages all showing strong moves to the upside after ending the previous session mixed. The tech-heavy Nasdaq has helped lead the charge, surging to its best intraday level in over a month.
Currently, the major averages are just off their highs of the session. The Nasdaq is up 408.78 points or 2.3 percent at 17,855.13, the S&P 500 is up 77.01 points or 1.4 percent at 5,646.07 and the Dow is up 313.70 points or 0.8 percent at 40,983.06.
The rally on Wall Street comes in reaction to upbeat earnings news from software giant Microsoft (MSFT) and Facebook parent Meta Platforms (META).
Shares of Microsoft are soaring by 9.2 percent after the company reported better than expected fiscal third quarter results and provided strong full-year guidance.
Meta Platforms has also shot up by 6.0 percent after reporting first quarter results that exceeded analyst estimates on both the top and bottom lines.
On the other hand, shares of Qualcomm (QCOM) have plunged by 8.5 percent after the chipmaker reported fiscal second quarter results that beat expectations but provided disappointing revenue guidance for the current quarter.
Pharmaceutical giant Eli Lilly (LLY) has also tumbled by 6.4 percent after reporting better than expected first quarter results but cutting its full-year profit forecast.
Meanwhile, traders have largely shrugged off some disappointing U.S. economic data, including a Labor Department report showing first-time claims for U.S. unemployment benefits rose by much more than expected in the week ended April 26th.
The Labor Department said initial jobless claims climbed to 241,000, an increase of 18,000 from the previous week's revised level of 223,000.
Economists had expected jobless claims to inch up to 224,000 from the 222,000 originally reported for the previous week.
The Institute for Supply Management also released a report showing a slight decrease by its reading on U.S. manufacturing activity in the month of April.
The ISM said its manufacturing PMI edged down to 48.7 in April after slipping to 49.0 in March, with a reading below 50 indicating contraction. Economists had expected the index to dip to 48.0.
Sector News
With Microsoft leading the way higher, software have shown a substantial move to the upside, driving the Dow Jones U.S. Software Index up by 5.7 percent to its best intraday level in well over a month.
Significant strength is also visible among networking stocks, as reflected by the 5.0 percent spike by the NYSE Arca Networking Index. The index has also surged to a one-month intraday high.
Oil service stocks have also moved sharply higher amid a rebound by the price of crude oil, with the Philadelphia Oil Service Index jumping by 3.2 percent.
Computer hardware, semiconductor and retail stocks are also seeing considerable strength, while gold and pharmaceutical stocks have shown notable moves to the downside.
Other Markets
In overseas trading, Japanese and Australian stocks moved to the upside on Thursday, although most major markets in the Asia-Pacific region were closed for Labor Day. Japan's Nikkei 225 Index jumped by 1.1 percent, while Australia's S&P/ASX 200 Index crept up by 0.2 percent.
Meanwhile, with most major European markets closed for May Day, U.K. stocks have shown a lack of direction over the course of the trading session. The U.K.'s FTSE 100 Index has bounced back and forth across the unchanged line and is currently down 0.1 percent
In the bond market, treasuries have moved to the downside after ending the previous session roughly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.7 basis points at 4.212 percent.
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