Wall Street soars on Powell signals and tech euphoria

Strength in the face of the wave of inflation and signs of economic weakening. The big technology companies resume their idyll with investors after presenting the accounts for the second quarter. It is the case of Microsoftyou Alphabetthe Google matrix, which rose in the stock market with force after announcing the evolution of its business in the last three months.

But investors had another more important event this Wednesday: the Fed. The central bank raised interest rates by 0.75 points, according to forecasts, but at the press conference Governor Jerome Powell hinted that the aggressive adjustment made to date will be smoother from September. At closing, the dow jones 1.4% was recorded, while the S&P 500 and the Nasdaq 100 registered advances of 2.6% and 4.3%, respectively.

Strong prospects for the owner of Windows, Azure, Linkedin and Xboxcoupled with strong ad sales from the owner of Youtube cause a rebound in technology and growth stocks on the stock market.

Better-than-expected Google ad sales sent shares of Alphabet rose 7.6% in its second best session in 2022. The biggest seller of internet ads shows that it is better positioned to weather a downturn compared to its smaller rivals and is not feeling the rise of competition like TikTok or Bing.

Microsoft soared another 6.7% after the company said it is targeting a double-digit growth in tax revenue, easing concerns about the impact of skyrocketing prices and slowing growth, even as it missed estimates for fourth-quarter results.

All eyes will now be on ad revenue at Meta Platformsowner of Facebookto be published later in the day after the disappointing results of Twitter and the owner of Snapchat last week they sparked a sell-off from social media and ad-tech companies.

The actions of Goalthe parent company of Whatsapp, Instagram and Facebook, increased in value by 6.5% before results, while Apple and Amazon.comwhich will publish earnings reports this Thursday, rose 3.4% and 5.3%, respectively.

In this way, today the results of the largest firms in the US would conclude, Apple, Microsoft, Alphabet, Tesla and Amazonwhich together represent almost a quarter of the weight in the benchmark S&P 500 index and will mark the trend of the indices in the coming weeks.