news/GOOGL/2023.02.02/Nasdaq, S&P 500 jump on Meta rise, Fed relief.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 highs*Indexes: Dow down 0.26%, S&P up 1.47%, Nasdaq up 3.38%(Updates with mid-afternoon trading)Feb 2 (Reuters) - The Nasdaq and S&P 500 jumped and
touched roughly five-month highs on Thursday as a more
dovish-than-expected message from Federal Reserve Chair Jerome
Powell boosted equities and Meta Platforms shares soared on
rigorous cost controls.The Dow slipped, weighed down by declines in some big
healthcare stocks.Shares of megacap stocks Apple, Amazon and
Google parent Alphabet also were gaining strongly
ahead of their results due after the market closes.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.“Markets are just reacting to I think a more dovish press
conference from Powell yesterday,” said Anthony Saglimbene,
chief market strategist at Ameriprise Financial. “I think the
market got out of that Fed meeting still hoping that conditions
can be easier at the end of the year.”The Dow Jones Industrial Average fell 88.57 points,
or 0.26%, to 34,004.39, the S&P 500 gained 60.52 points,
or 1.47%, to 4,179.73 and the Nasdaq Composite added
399.57 points, or 3.38%, to 12,215.89.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 over 6%, led by a 26% gain 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," Saglimbene said. "They want to hear
that it is a year of efficiency, they are getting out ahead of a
slowdown in the economy."The consumer discretionary and tech
sectors rose 3.9% and 2.9%, respectively.The energy sector, one of last year's standout
performers, fell 3%, while healthcare dropped 1%.UnitedHealth Group shares fell 5.6% after the U.S.
government proposed Medicare Advantage reimbursement rates below
analyst estimates, and the stock weighed down the Dow. A 3.9%
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 fell 6% 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.Advancing issues outnumbered declining ones on the NYSE by a
2.70-to-1 ratio; on Nasdaq, a 3.12-to-1 ratio favored advancers.The S&P 500 posted 35 new 52-week highs and one new low; the
Nasdaq Composite recorded 140 new highs and 11 new lows.
(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)