Gains in Tech Sector Fuel U.S. Stock Bullish Run, Sp500 to Close the Week Higher
U.S. shares traded higher on Friday with bullish sentiment was boosted by better-than-expected quarterly results from major technology companies, upbeat GDP data that showed the U.S. economy unexpectedly maintained a brisk pace of growth in the third quarter, not to mention optimism over the tax reform process.
The S&P 500 added more than 0.7 percent to trade at 2,578.00 – the highest level since October 23rd. Seven out of eleven major sectors of the stock benchmark index were trading in positive territory with the technology sector leading the gains, up 2.58%. The rally in this sector came after four of the most valuable tech companies in the world, namely Amazon, Google parent Alphabet, Microsoft and Intel easily beat market expectations for profit and revenue in their third-quarter reports.
U.S. stock markets were also boosted after the Commerce Department on Friday reported that the U.S. economy expanded at a solid 3% annual pace for a second straight quarter in spite of damages from two hurricanes. The reading blew analysts’ forecast calling for the report to show the economy grew at a 2.5 percent pace in the third quarter.
Furthermore, the University of Michigan published the final reading of its consumer sentiment index for October that soared to 100.7 from September’s 95.7. The figure was slightly lower than the preliminary reading of 101.1 and economists’ expectation for a revised reading of 100.8 but recorded the strongest level in 13 years.
Buy Stop at 2,578.00, Take profit at 2,584.00, Stop loss at 2,575.00