‘BIG TECH’ HELPS PROPEL NASDAQ TO ALL-TIME HIGH LED BY AMAZON

As has been the case for the last few years it is the tech sector that is leading gains for the S&P500 and Nasdaq indices, last week ‘super Thursday’ saw Amazon, Microsoft and Alphabet (Google) all beat earnings estimates significantly, Amazon was the biggest winner with its share price jumping over 8% to trade above $1,000 for the first time.

The company reported a 34% increase in sales to $43.7bn in the three months to the end of September. Alphabet shares also traded above $1,000 for the first time, rising 4.3% after the parent company of Google announced a 24% rise in sales.

Microsoft, one of the ‘old guard’ of tech stocks also beat estimates and was rewarded with a 6.6% jump in its share price, taking its market capitalisation to $630bn, surpassing the peak touched during the Dotcom bubble of 2000.

Investors have turned increasingly bullish on the prospects of US equities, pumping over $14bn into the asset class in the last three weeks.

There has been some market concern overvaluation, particularly of US stocks so these significantly better earnings reports will go some way to alleviate these fears.

Twitter also reported far better results and its stock rocketed 18% higher. The S&P500 has had an 49 record closing highs this year and has gone nearly a year without a 5% correction, the longest streak since 1928!