Powerful Profits Elevate Equities

U.S. equities soared, lifted by tech stocks after a better-than-expected earnings report from Meta Platforms (META). The Nasdaq and S&P 500 leaped 2%, and the Dow added 1.5%.

Meta Platforms shares surged 14% as the parent of Facebook, Instagram, and WhatsApp exceeded virtually every financial metric in the first quarter and predicted current quarter sales that were above forecasts. All the other FAAMG stocks also took off. Amazon (AMZN) shares jumped 4.5% during the regular session, and they're spiking in extended trading following the firm's after-the-bell financial release.

The market got a boost from other strong earnings reports as well. Shares of Honeywell (HON) rose 4% after the conglomerate's earnings and revenue came in higher than anticipated. Hasbro (HAS) reported a surprise profit and sales beat forecasts, boosting the toymaker's shares. Comcast (CMCSA) shares gained as the cable, media, and entertainment company also exceeded quarterly expectations.

First Republic Bank (FRC) shares rallied back after plummeting the past two days, and that helped drive up shares of other regional banks.

Southwest Loss

Southwest Airlines (LUV) shares sank on the carrier's larger-than-expected loss related to the thousands of flight cancellations it had during the holiday travel season. Caterpillar (CAT) was the only stock in the Dow in the red as the heavy equipment manufacturer's earnings report raised concerns that demand may have peaked. Shares of AbbVie (ABBV) lost ground on disappointing sales of some of the biopharmaceutical firm’s key drugs.

Oil and gold futures advanced. The yield on the 10-year Treasury note jumped. The U.S. dollar rose versus the euro and yen but fell against the pound. Prices for major cryptocurrencies reversed earlier losses and posted significant gains.