Big tech companies sparked a stock rally on Thursday as investors took a look at some promising wholesale inflation numbers versus a tough consumer price report. On the inflation side, things looked a bit brighter for investors.
Apple stock went up by 4.3% on Thursday, leading the charge in the Magnificent Seven rally after facing some heavy challenges earlier. Apple's shares have taken a hit of over 5% this year.
Despite some negative trends in iPhone sales in China and reports of canceled projects like their car initiative, investors might feel better about its current value after recent losses and the potential gains from AI.
JPMorgan analysts are betting on a strong cycle of iPhone sales in 2026 thanks to upcoming AI features. Apple's CEO, Tim Cook, hinted at an AI announcement later this year. While Apple hasn't revealed any direct competitors to models like OpenAI’s GPT or Google’s Gemini, Tim Cook teased a big announcement coming up this year.
The key players in the Magnificent Seven tech stocks helped lead the rally. After Apple, chip giant Nvidia saw a 4.1% increase. The other five top dogs in the pack also saw gains. Google's parent company Alphabet went up by 2.1%, while Amazon gained 1.7%. Both companies are getting close to that $2 trillion mark in market value, with Alphabet at $1.99 trillion and Amazon at $1.96 trillion. Microsoft saw a 1.1% rise, Meta Platforms (formerly Facebook) was up by 0.6%, and even struggling Tesla managed a 1.6% increase.
This strong upward trend pushed tech-heavy stock indexes higher. The Nasdaq Composite, loaded with tech stocks, led the charge, gaining around 1.7%. The S&P 500 went up by about 0.7%, while the Dow Jones Industrial Average had a more subdued day, just barely staying below the flatline.
Now, it's earnings season, and these companies will be reporting their first-quarter performances soon.
