The technology sector has been one of the best performing sectors of the stock market in recent years. So, why are tech stocks up today? Let’s take a look at some of the factors that may be driving the sector higher.
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The Nasdaq is up
U.S. stocks were up on Tuesday, led by gains in tech stocks, as investors largely brushed off concerns about rising tensions between the U.S. and China.
The Nasdaq Composite Index COMP rose 1.1% to 10,363.13, its highest close since Feb. 21, 2020, as shares of big tech companies including Apple Inc. AAPL , Amazon.com Inc. AMZN and Microsoft Corp. MSFT all climbed.
The Dow Jones Industrial Average DJIA gained 096% to 26,28766, led by a 3% jump in shares of Boeing Co BA , while the S&P 500 index SPX rose 084% to 317050, with the technology sector driving the majority of the gains.
Stocks had been mostly lower earlier in the day amid reports that the U.S. is considering banning travel from India as Covid-19 cases there continue to surge. The potential travel ban weighed on shares of airlines including American Airlines Group Inc AAL and United Airlines Holdings Inc UAL .
But those concerns appeared to ease later in the day as investors focused on the ongoing economic recovery in the U.S., with data showing that retail sales jumped 916% in March, far exceeding expectations for a 727% increase.(https://www.marketwatchcom/story/why-are-tech-stocks-up-today-nasdaq-hits-new-high-on-retail-sales-data-boeing-gains--11619724550)
Tesla is up
Tesla is up after the company reported better-than-expected third quarter earnings. The electric automaker posted an adjusted net loss of $0.69 per share, while analysts were expecting a loss of $0.86 per share. Tesla also reported revenue of $6.30 billion, which beat expectations of $6.09 billion.
Apple is up
Apple is up today because the company reported better-than-expected quarterly earnings and guidance.
The tech giant posted fiscal first-quarter results of $1.68 per share on revenue of $84.3 billion, easily surpassing Wall Street’s estimates of $1.57 per share on revenue of $83.97 billion.
Apple also said it expects fiscal second-quarter revenue to come in between $89 billion and $93 billion, well above analysts’ expectations of $87.31 billion.
The strong results and guidance sent Apple shares up more than 6% in after-hours trading.
Google is up
Google is up about 1% in trading today, following reports that the company is close to acquiring the fitness tracker company Fitbit. Google has been facing increased scrutiny from regulators over how it collects and uses user data, so the Fitbit acquisition would give it a valuable new source of data. Google is also reportedly working on a new version of its Pixel smartphone, which is expected to be announced later this year.
Amazon is up
Shares of Amazon are up today after the company announced strong quarterly results.
For the quarter, Amazon reported revenue of $25.36 billion, an increase of 22% from the same period last year. Earnings came in at $0.56 per share, up from $0.15 per share in the same quarter last year. Analysts had been expecting revenue of $24.50 billion and earnings of $0.50 per share.
The strong results were driven by growth in Amazon’s core businesses, including its cloud computing, e-commerce, and digital content businesses. The company also saw continued strong growth in its newer businesses, such as its Prime Now one-hour delivery service and its Fire TV streaming device.
Shares of other tech companies are also up today on the news, with the Nasdaq Composite Index rising 1% in early trading.
Facebook is up
Facebook is up 4 percent today after the company announced a number of new features at its annual F8 conference. The stock is up more than 20 percent since the beginning of the year.
Microsoft is up
In after-hours trading on Thursday, Microsoft stock was up more than 5 percent to $84.75 after the company reported fiscal fourth-quarter results that topped expectations. The stock is now up more than 30 percent this year.