news/AMZN/2023.02.02/Nasdaq, S&P 500 close higher on Meta bump, Fed lift.txt

(For a Reuters live blog on U.S., UK and European stock
markets, click or type LIVE/ in a news window.)*Meta soars after cost controls, $40 bln share buyback*Merck slides on disappointing forecast, UnitedHealth drops*S&P 500, Nasdaq hit roughly 5-month intraday highs(Updates with U.S. market close)Feb 2 (Reuters) - The Nasdaq and S&P 500 ended higher on
Thursday after touching roughly five-month intraday highs as a
more dovish-than-expected message from Federal Reserve Chair
Jerome Powell boosted equities and Meta Platforms shares soared
on rigorous cost controls.Declines in some big healthcare stocks weighed on the
Dow.Shares of megacap stocks Apple, Amazon and
Google parent Alphabet also gained strongly ahead of
their results due after market close.Investors were still digesting the Fed's policy decision on
Wednesday and comments from Powell, who acknowledged progress in
the fight against inflation and appeared reluctant to push back
against the rally in stocks and bonds.“I think the reaction to yesterday’s Fed comments really
encouraged investors to go risk on,” said Rick Meckler, partner
at Cherry Lane Investments in New Vernon, New Jersey. "The
bottom line for investors I think is that the Fed’s comments
were unexpected.”According to preliminary data, the S&P 500
gained 61.05 points, or 1.48%, to end at 4,180.26 points,
while the Nasdaq Composite gained 384.91 points, or
3.26%, to 12,201.23. The Dow Jones Industrial Average
fell 38.26 points, or 0.11%, to 34,054.70.After a bruising 2022, U.S. stock markets have made a strong
start to the year, with tech and other stocks that lagged last
year leading the rebound amid hopes that the Fed will temper its
aggressive rate hikes, which in turn could alleviate some
pressure on equity valuations.Those trends continued on Thursday. The communications
services sector jumped, led by a surge for Facebook
parent Meta. The company revealed stricter cost
controls this year and a $40 billion share buyback, as CEO Mark
Zuckerberg called 2023 the "year of efficiency."“I think that encapsulates what investors want to hear from
tech companies this year," said Anthony Saglimbene, chief market
strategist at Ameriprise Financial. "They want to hear that it
is a year of efficiency, they are getting out ahead of a
slowdown in the economy."UnitedHealth Group shares fell after the U.S.
government proposed Medicare Advantage reimbursement rates below
analyst estimates, and the stock weighed down the Dow. A decline
in Merck shares, after the drugmaker forecast 2023
earnings below Wall Street estimates, also dragged on the blue
chip index.Shares of drugmaker Eli Lilly dropped after sales of
its closely watched diabetes drug missed estimates.Data showed jobless claims fell last week to a nine-month
low, highlighting the labor market's resilience, ahead of
monthly U.S. employment numbers on Friday.
(Reporting by Lewis Krauskopf in New York, Shreyashi Sanyal and
Johann M Cherian in Bengaluru; Editing by Vinay Dwivedi, Anil
D'Silva and Cynthia Osterman)