The Nasdaq Composite and S&P 500 hit record highs as strong earnings and healthy growth in gross domestic product increased stocks across the board.
helped lead the stock higher with a banner day, and rose after reporting a revenue jump for the last quarter and authorizing a buyback. It added a staggering $ 79 billion in market value, increasing $ 109.28, or 9.6%, to $ 1,245.22. It was the company's best percentage gain on a day this year and the biggest dollar gain ever.
Alphabet increased its market value to more than $ 860 billion, according to FactSet, adding approximately the value of
in just one day. Alphabet's ability to add to the market was greater than the individual market values for all except 72 other companies in the S&P 500. The company also blew past alternative traders' forecasts for a move after revenue.
Analysts said the strength of the American consumer, evident in some of the latest financial results and financial data, as well as expectations that the Federal Reserve will soon cut interest rates, has helped push stocks higher. Cooling trade tensions also helped lift stocks this week following news that US dealers would travel to Shanghai to resume formal trade negotiations.
Data released early Friday showed that gross domestic product grew at a 2.1
“[GDP] report should give people comfort … , "Said Chris Zaccarelli, chief of investment managers at the Independent Advisor Alliance. "The US economy continues to be on a stronger footing than the rest of the world."
On Friday, the S&P 500 rose 22.19 points, or 0.7%, to 3025.86, listing its 13th record for the year. The tech-heavy Nasdaq Composite gained 91.67 points, or 1.1%, to 8330.21, the 10th record in 2019. And the Dow Jones Industrial Average increased by 51.47 points, or 0.2%, to 27,192.45.
All three major US indices finished the week with gains, with S&P up 1.7%, Dow Jones up 0.1% and Nasdaq up 2.3%.
The communications services sector was the best performer of the S&P 500's 11 groups on Friday, up more than 3% and lifted by Twitter and Alphabet, its biggest winners. Twitter shares rose high after reporting strong user growth and revenue in the second quarter. Social media shares put $ 3.40, or 8.9%, at $ 41.52.
Investors have seen technology heavyweights this revenue season as
has helped drive the S&P 500's record run this year. Big money managers have increased their efforts in these types of companies, which have been some of the best performers.
So far in 2019, technology companies have been winners as investors look for growth. The S&P 500 technology sector has risen 33% since the end of 2018, surpassing the broader index gain of 21% over the same period.
Alphabet's huge gain on Friday failed to move it up the list of major companies – it remained fourth in the S&P 500, behind Microsoft, Apple and Amazon. The jump Friday came after it was the worst-performing technology company valued over $ 100 billion this year and entered the earnings report.
As market volatility declines and stocks continue to rise, some analysts and investors said they expected greater stock returns. Friday's data underlined the strength of the US economy, analysts said. Now many are preparing for the Fed to cut interest rates and give a boost. The central bank will meet next week.
"I think the market as a whole went higher toward the turn of the year," said Bruce Bittles, chief investment strategist at Robert W. Baird & Co.
Write to Gunjan Banerji at Gunjan.Banerji@wsj.com and Corrie Driebusch at firstname.lastname@example.org
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