WALL Street stocks shook off recent weakness and powered higher yestersay following strong results from Facebook parent Meta Platforms and mixed US economic data.

Shares in Meta surged around 14% as it reported a profit of US$5.7 (RM25.4) billion in the first quarter – the latest favourable results by a US tech giant – prompting relief in the market following earlier fears that the sector might sputter.

Solid results from Meta, as well as Microsoft and Alphabet earlier in the week, “helped foster a sense of relief that the mega-cap leaders are still performing relatively well from an operational standpoint and maintaining their position as market leaders,” said Briefing.com.

Following a muted session on European and Asian bourses, US stocks enjoyed their best day in weeks. The S&P 500 finished 2% higher.

Art Hogan, an analyst at B. Riley Financial, said investors were also heartened by US gross domestic product data that showed strong consumer spending, even if the headline figure disappointed.

Further “the worst of the regional bank turmoil is likely in the rear mirror,” said Hogan, noting that most US lenders released earnings that were reassuring.

“It doesn’t feel like the market is expecting some contagion,” Hogan said.

After two straight routs, First Republic Bank mustered an 8.8% gain. Other regional banks also closed higher.

With markets having digested the busiest stretch of earnings, the focus turns next to the Federal Reserve’s monetary policy meeting next week.

Yields on US government debt rose after US data was released, suggesting that the market expects the Fed to consider strong consumer spending in the first quarter as well as a drop in weekly jobless claims on Thursday as evidence that the economy can take more interest rate hikes.

Elsewhere, oil prices rose modestly, bouncing from the prior session’s rout.

Japan’s Nomura bank saw its share price plunge more than 7% after announcing its profits tumbled 76% to US$55.3 million in the last quarter.

But British bank Barclays rallied more than 5%, topping London’s benchmark FTSE 100 stocks index, thanks to a jump in quarterly profits.

Back in New York, Caterpillar shares fell 0.9% despite reporting solid earnings, as the market remained unconvinced about the company’s outlook amid recession worries.

Key figures around 2045 GMT

New York - Dow: UP 1.6% at 33,826.16 (close)

New York - S&P 500: UP 2.0% at 4,135.35 (close)

New York - Nasdaq: UP 2.4% at 12,142.24 (close)

London - FTSE 100: DOWN 0.3% at 7,831.58 (close)

Frankfurt - DAX 40: UP less than 0.1% at 15,800.45 (close)

Paris - CAC 40: UP 0.2% at 7,483.84 (close)

EURO STOXX 50: UP 0.2% at 4,358.05 (close)

Hong Kong - Hang Seng Index: UP 0.4 at 19,840.28 (close)

Shanghai - Composite: UP 0.7% at 3,285.88 (close)

Tokyo - Nikkei 225: UP 0.2% at 28,457.68 (close)

Euro/dollar: DOWN at US$1.1033 from US$1.1041 on Wednesday

Pound/dollar: UP at US$1.2498 from US$1.2469

Dollar/yen: UP at  ¥134.02 from  ¥133.67

Euro/pound: DOWN at 88.24 pence from 88.55 pence

Brent North Sea crude: UP 0.9% at US$78.37 per barrel

West Texas Intermediate: UP 0.6% at US$74.76 per barrel – AFP, April 28, 2023.