Stocks Turn Positive, Dow Jumps 100 Points After Big Tech Earnings Beat Expectations

The Dow Jones Industrial Average was up 0.4%, over 100 points, on Friday, while the S&P 500 rose 0.8% and the tech-heavy Nasdaq Composite gained 1.5%.

The Dow fell by nearly 300 points earlier in the day, but the market recovered and turned positive thanks to continued strength in Big Tech stocks.

Three of the biggest U.S. tech companies—Apple, Amazon and Facebook—reported earnings and revenue that crushed Wall Street expectations late on Thursday.

Apple rose 10% to a new all-time high on Friday, boosting the market higher, while also announcing a 4-for-1 stock split that was cheered by investors.

While shares of Big Tech companies are among the best-performing stocks so far this year, there are rising concerns on Wall Street that heavy market concentration in this handful of big names could pose downside risks to the market.

Consumer sentiment fell to 72.5 in July—down from 78.1 last month—amid the resurgence in new coronavirus cases across the country, according to data from the University of Michigan.

Shares of companies that would benefit from a reopening of the economy—including airlines, cruise stocks, banks and some retailers—moved lower again on Friday.