U.S. stocks opened higher on Friday, led by Google parent Alphabet and Microsoft shares popping after earnings.
The tech giants reported better-than-expected quarterly results after the bell Thursday, with Alphabet announcing its first cash dividend. Shares were up more than 11 percent pre-market. Microsoft was up nearly 4 percent.
This comes a day after the major U.S. stock indexes fell sharply, weighed down by a one-two punch of economic data that showed growth slowing and inflation persisting.
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Also dragging on the markets Thursday was Facebook and Instagram parent Meta Platforms, which saw shares drop more than 10 percent as investors reeled from the company's promise to spend more on artificial intelligence technology.
Investors' enthusiasm for AI is markedly high, driven by AI's transformative potential across various sectors, including healthcare, finance, and technology. This has vividly manifested in the stock market, with companies that are leaders or innovators in AI technologies having an outsized impact on gains and losses.
For instance, companies like Alphabet and Amazon have been focal points for investors due to their significant investments and advancements in AI. Alphabet has not only pumped billions into AI startups but is also expanding its AI capabilities into new areas like autonomous vehicles and AI-driven chatbots. Similarly, Amazon is leveraging AI in diverse facets of its operations, from e-commerce algorithms to cloud computing services provided by Amazon Web Services, which includes substantial AI integration.
Overall, the prevailing investor sentiment around AI is one of optimism and strategic positioning, aiming to capitalize on the growth trajectory that AI technologies are anticipated to follow in the coming years. The stakes are high for these AI leaders to meet expectations and justify their share price.
Also on Friday morning, a key piece of economic data showed that inflation remained elevated, with prices rising 2.8 percent in March from a year ago, slightly more than expected.
Oil and gas giants Exxon Mobil and Chevron reported their earnings results before the bell. Exxon missed expectations, while Chevron beat, with both companies' refining businesses coming under pressure. Shares of Exxon and Chevron were both down in morning trading.
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Next week is set to be another earnings-packed extravaganza for investors, with less focus on Big Tech and more on consumer goods. Two of the so-called Magnificent Seven, Amazon and Apple, report their quarterly results.
Earnings highlights to watch next week:
- Monday: Domino's Pizza, Paramount, SoFi Technologies
- Tuesday: Amazon, Eli Lilly, Coca-Cola, McDonald's, Starbucks, Stellantis, Mondelez, PayPal, 3M
- Wednesday: Mastercard, Pfizer, CVS, Marriott, DoorDash, The Kraft Heinz Company, Pizza Hut and KFC parent Yum! Brands, ebay
- Thursday: Apple, pharmaceutical company Novo Nordisk, Shell, Moderna
- Friday: Berkshire Hathaway, AMC
Uncommon Knowledge
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
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Daniel Orton is an editor on the live news team at Newsweek, based in London, UK. He was previously Video ... Read more
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