S&P 500 in rally mode as Meta shines on earnings stage

Investing.com -- The S&P 500 jumped Thursday, as a surge in Meta on better-than-expected quarterly results, triggered a sea of green in tech stocks.

The S&P 500 rose 2%, the Dow Jones Industrial Average gained 1.5%, or 544 points, and the Nasdaq added 2.5%.

Meta Platforms Inc (NASDAQ:META) reported quarterly results on both the top and bottom lines, and the social media giant delivered upbeat guidance, sending its shares more than 15% higher.

The quarterly results and guidance signal a transition for the social media giant “from a cost cut to a revenue recovery story,” Credit Suisse said in a note.

Meta’s results continued a trend of better-than-expected quarterly results from megacap tech, improving sentiment on big tech, with Alphabet (NASDAQ:GOOGL), Apple Inc (NASDAQ:AAPL), and Microsoft Corporation (NASDAQ:MSFT) in rally mode.

Amazon (NASDAQ:AMZN) is expected to report quarterly results after markets close on Thursday.

Elsewhere on the earnings front, Caterpillar Inc (NYSE:CAT) pared losses to trade flat after reporting quarterly results that topped estimates, while Honeywell International Inc (NASDAQ:HON) gained 4% amid better-than-expected first-quarter earnings.

Toymakers Hasbro (NASDAQ:HAS) and Mattel Inc (NASDAQ:MAT) were also big movers, up 14% and 7% respectively, after delivering better-than-expected quarterly results.

Mattel’s Q1 beat was driven by “the favorable timing of shipments at quarter-end, which shifted revenue from the second quarter into the first,” Goldman Sachs said in a note.

The wobble in First Republic Bank (NYSE:FRC), which slumped 30% a day earlier, steadied despite recent reports that the U.S. government is unwilling to intervene in the rescue of the beleaguered regional bank.

Energy also recovered recent losses as oil prices steadied, though investor focus will likely switch to quarterly results from the oil majors including Exxon Mobil Corp (NYSE:XOM), and Chevron Corp (NYSE:CVX) due Friday.

In other news, Cannabis including Canopy Growth Corp (NASDAQ:CGC), Tilray Inc (NASDAQ:TLRY), and Cronos Group Inc (NASDAQ:CRON) racked up gains after U.S. lawmakers reintroduced the Secure and Fair Enforcement Banking Act that seeks to allow banks to legally offer services to marijuana companies.

The day of gains for the broader market comes just as data showed the economy slowed more than expected in the first quarter.