Why did Meta stock plunge?

Meta fell after reporting quarterly revenue below expectations and forecasting slower ad growth.

Why did Eli Lilly stock jump?

Lilly jumped after raising its full-year revenue guidance, driven by Mounjaro sales.

Did chip stocks also rise?

Yes, Nvidia and AMD rose over 3%, supported by AI demand.

What is the impact of inflation data on the market?

Cooler inflation data boosted confidence that the Fed may slow rate hikes, prompting investors to buy stocks.

Stock Market Today: Dow Adds 790 Points; Meta Falls, Lilly Jumps

Q: Why did the Dow Jones rise 790 points?

The index rose after inflation data came in cooler than expected, boosting hopes that the Fed may slow rate hikes.

The Dow Jones Industrial Average surged 790 points on Thursday after inflation data came in cooler than expected. Meta stock plunged following disappointing earnings, while Eli Lilly jumped on strong guidance. Chip and data center stocks also rallied.

The Dow Jones Industrial Average surged 790 points on Thursday after inflation data came in cooler than expected, boosting hopes that the Federal Reserve may slow its pace of interest rate hikes. In contrast, Meta (META) stock plunged sharply after its quarterly results disappointed investors, while Eli Lilly (LLY) jumped on positive results.

Market Move Drivers

Inflation Data

The April Consumer Price Index showed a larger-than-expected slowdown, reinforcing views that inflation has peaked. This prompted investors to return to stocks, particularly in technology and industrials.

Corporate Earnings

Meta (META): The stock fell more than 10% after the company reported quarterly revenue below expectations and forecast slower ad growth.
Eli Lilly (LLY): The stock jumped 5% after the company raised its full-year revenue guidance, driven by sales of its diabetes drug Mounjaro.
Chip and Data Center Stocks: Shares of Nvidia (NVDA) and AMD (AMD) rose over 3%, supported by strong demand for AI infrastructure.

Broader Market Context

The rally followed a losing session on Wednesday, with investors remaining cautious about continued monetary tightening. The Dow is on track for its first weekly gain in three weeks.

Similar Moves in the Sector

The technology sector saw broad gains, with Alphabet (GOOGL) and Amazon (AMZN) each rising 2%. Caterpillar (CAT) also rose 3%, supported by industrial spending data.