US stocks rise as tech shares rally

Tech giants including Facebook parent Meta and Google parent Alphabet won solid gains. PHOTO: REUTERS

NEW YORK - Large tech shares powered up Tuesday, helping to propel US stocks higher as markets digested generally good retailer earnings ahead of the holiday shopping season.

Tech giants including Facebook parent Meta and Google parent Alphabet – companies that have lagged the broader market for much of 2022 – won solid gains. analyst Patrick O’Hare said Tuesday’s rally reflected “the vicissitudes of a holiday market” two days before the Thanksgiving break when there were few major economic indicators.

Analysts also cited good results from Best Buy and some other retailers which offered hope that a resilient American consumer will keep spending during the critical shopping season that begins on “Black Friday.”

The Dow Jones Industrial Average jumped nearly 400 points, or 1.2 per cent, to 34,098.10.

The broad-based S&P 500 gained 1.4 per cent to 4,003.58, while the tech-rich Nasdaq Composite Index also advanced 1.4 per cent to 11,174.41.

Among individual companies, Best Buy surged 12.8 per cent as it reported better-than-expected results, as promotions drew in more consumers and it took an aggressive approach to cost-cutting.

But discount chain Dollar Tree fell nearly eight percent while it cautioned that higher costs were crimping profit margins.

Manchester United soared 14.7 per cent following a Sky News report that the team’s US-based owners, the Glazer family, could sell the venture.

The report came as the team announced that Portuguese star Cristiano Ronaldo was leaving the club immediately following a broadcast interview in which he sharply criticised the Glazer family.

Late on Tuesday, Manchester United released a statement saying its board is “commencing a process to explore strategic alternatives for the club,” including a possible sale. AFP

Join ST's Telegram channel and get the latest breaking news delivered to you.