US stocks rallied on Thursday, buoyed by strong earnings results and a resurgence in technology stocks as U.S. bond yields eased, with each of Wall Street’s major indexes up more than 1 percent.
The tech-heavy Nasdaq was on track to snap a five-day losing streak while the S&P technology index appeared poised to post its first up day in six sessions.
Facebook jumped 9.8 percent following its impressive earnings beat, which appeared to calm worries over the fallout of the Cambridge Analytica privacy scandal.
Chipmakers Advanced Micro Devices and Qualcomm were up 13.4 percent and 1.5 percent, respectively, after quarterly results that beat Wall Street estimates, calming worries over weak smartphone demand.
Their advances helped lift the Philadelphia Semiconductor index 2.1 percent, putting it on track to break its six-day losing streak and post its best day in three weeks.
“I think it’s been pretty much good earnings across the board,” said Gary Bradshaw, portfolio manager of Hodges Capital Management in Dallas. “Revenues have been strong, so the earnings are not just cost-cutting as they were a couple years back. But there’s obviously rising costs.”
The yield on US 10-year Treasuries dipped below the 3 percent level as buyers emerged following a sell-off fueled by worries over growing US debt issuance and rising costs.
“It gives investors a little encouragement that rates aren’t going to be running sky high, but the market’s acting great just on good earnings,” said Bradshaw.
At 3:02PM ET, the Dow Jones Industrial Average rose 305.26 points, or 1.27 percent, to 24,389.09, the S&P 500 gained 35.82 points, or 1.36 percent, to 2,675.22 and the Nasdaq Composite added 137.33 points, or 1.96 percent, to 7,141.06.
So far, 45 percent of S&P 500 companies have reported first-quarter earnings, with 79.7 percent beating consensus estimates. Analysts see 23.1 percent earnings growth for the quarter, based on a blend of actual and estimated results.
Amazon shares were up 4.3 percent in advance of the online retailer’s earnings announcement, expected after the bell.
General Motors dipped 1.0 percent after the automaker reported a drop in production of high-margin pickup trucks, despite posting higher-than-expected profit.
United Parcel Service shares rose 4.1 percent after the world’s largest package delivery company posted higher first-quarter profit and strong volumes despite cost and weather headwinds.
Visa also helped lift the tech sector, advancing 4.9 percent following the payments network’s better-than-expected profit and earnings forecast raise.
Union Pacific shares fell 2.1 percent after the No. 1 U.S. railroad operator cautioned on a key operating metric, sending the Dow Jones Transportation Average down 0.66 percent.
AT&T shares slumped 5.2 percent after it reported a loss of subscribers from its pay TV business.
In economic news, new orders for durable goods unexpectedly dropped in March as demand for machinery registered its biggest decline in more than two years, according to the Commerce Department. However, the Labor Department reported initial claims for unemployment fell to their lowest level since 1969, suggesting the labor market is at or near full employment.
Advancing issues outnumbered declining ones on the NYSE by a 2.26-to-1 ratio; on Nasdaq, a 2.06-to-1 ratio favored advancers.