Broader markets enthused by interest rate cut optimism and this week’s sharp plunge in U.S. Treasury yields now home in on Friday’s U.S. jobs report for further guidance, with more signs this week of U.S. labor market cooling encouraging Federal Reserve easing hopes.
There was an element of deja vu around the world too, with a fresh 1% swoon in ailing Chinese stocks to new 5-year lows – perhaps alarmingly without an obvious trigger and suggesting an element of panic selling amid geopolitical tensions, tit-for-tat investment curbs and seemingly endless property sector woes.
But Meta steals the show back on Wall St.
Its shares soared 15% ahead of Friday’s open after the social media giant issued its first dividend days ahead of flagship Facebook’s 20th anniversary. It reported revenue and profit that beat expectations on robust ad sales and authorized a $50 billion stock buyback.
The company’s stock market valuation is now set to jump by more than $140 billion, extending a long recovery that saw Meta hit record highs for the first time in more than two years.
Amazon.com stock is also on a tear, up 8% ahead of the bell as the online retailing behemoth beat fourth-quarter revenue expectations with new generative AI features in its cloud and ecommerce businesses and robust growth during the holiday period.
Apple was more downbeat however as it forecast a drop in iPhone sales and targeted overall revenue $6 billion below expectations – with its China business taking a hit. That overshadowed overall first-quarter sales and profit that beat analysts’ targets and sent its shares down 3% overnight.
