The S&P 500 rose 1.3% after the opening bell, a day after the broad stocks gauge posted its biggest one-day advance since November. The Dow Jones Industrial Average gained 1.6% and the technology-heavy Nasdaq Composite Index climbed roughly 1.1%.
Stock markets have steadied globally this week after a choppy January, when extreme moves in some individual stocks, signs of a slowdown in the U.S. economy, and concerns about the pace of the vaccine rollout and new coronavirus variants weighed on share prices. Investor sentiment has been lifted by robust earnings reports from large-cap companies, as well as a decline in coronavirus cases in the U.S. and several other major economies.
Investors will parse quarterly earnings from Amazon . com and Alphabet after markets close. Shares of giant tech companies have continued to power the broader market in 2021, pushing the Nasdaq Composite up 5% so far this year.
“The bar for tech was actually quite high” coming into earnings season, said Hani Redha, a multiasset portfolio manager at PineBridge Investments. “Overall, for the sector, we are still seeing very strong earnings delivered.”