Tech Stocks Rally Ahead of Apple’s Earnings and Upcoming Jobs Report

The anticipation of Apple Inc.’s earnings report and the upcoming Friday employment data spurred a rebound in the stock market, led by the world’s largest technology companies. Equities recovered from a two-day drop, with notable gains from Nvidia Corp. in the chip sector and a nearly 2% increase in Apple shares. Investors are hopeful for a potential buyback announcement from Apple, similar to actions recently taken by Alphabet Inc. and Meta Platforms Inc. The addition of artificial intelligence features could also invigorate Apple’s stock, which has seen a more than 10% decline this year.

The Federal Reserve, on Wednesday, opted to maintain the benchmark interest rate between 5.25% and 5.5%, citing persistent price pressures despite expectations for future rate cuts. Fed Chair Jerome Powell indicated it is unlikely that the Fed will consider raising rates anytime soon. The S&P 500 lingered around 5,040, while Qualcomm Inc. experienced a surge following an optimistic forecast. On the downside, eBay Inc. faced a drop after presenting a less favorable outlook. Meanwhile, Treasury yields decreased slightly, and the dollar showed signs of weakening.

Investors are bracing for potential volatility in response to the US jobs report due Friday, which is expected to provide clearer insights into the Federal Reserve’s interest rate strategy for the remainder of the year.

Corporate Highlights:

• Peloton Interactive Inc. ( $PTON) announced CEO Barry McCarthy’s resignation amid a major restructuring plan that includes a 15% reduction in its global workforce to cut costs.
• MGM Resorts International ( $MGM) exceeded first-quarter sales and earnings expectations, bolstered by the recovery in Macau and a fruitful partnership with Marriott International Inc.
• Carvana Co. ( $CVNA) reported robust earnings, surpassing revenue forecasts as the company progresses with its restructuring plan and revitalizes its sales.
• DoorDash Inc., ( $DASH) America’s largest food delivery service, projected lower-than-expected profits for the current quarter as it invests in expanding its range of non-restaurant partners and enhancing operational efficiency.
• Moderna Inc. ( $MRNA) disclosed a smaller-than-anticipated first-quarter loss, benefiting from cost reductions that helped mitigate the sharp downturn in its Covid-related business.
• Apollo Global Management Inc. ( $APO) posted increased profits for the first quarter, driven by higher management fees and a record $40 billion in private credit originations, emphasizing a significant growth sector for the firm.