Alphabet’s Dividend Boosts Stock Market as Tech Giants Outperform Expectations

Alphabet’s recent announcement of its first dividend led to a nearly ten percent increase in the value of its share on Wall Street. After just an hour of trading on the New York stock exchanges, the main stock indices including the S&P 500, Nasdaq, and Dow Jones were all showing positive gains. The S&P 500 general index, representing the US stock market, was up 1.1 percent while the technology-focused Nasdaq had risen by about two percent and the Dow Jones index by half a percent.

Google’s parent company experienced a rise in stock during after-market trading on Thursday after reporting better-than-expected earnings per share and revenue. The company announced that it would be paying its first dividend in the stock market’s history, with a dividend of $0.20 per share. Microsoft also saw an increase in its share by 2.6 percent after reporting results that exceeded analysts’ expectations. However, semiconductor manufacturer Intel’s share was down about 10.5 percent due to disappointing guidance.

In other sectors, oil companies Exxon Mobil and Chevron saw decreases in their stock values as investors were disappointed with their results. Macroeconomic data from the United States was also released on Friday showing positive trends in private consumption and inflation levels which further contributed to optimism in the market. Overall, these developments were contributing to the overall growth and optimism in the market as various companies reported better-than-expected earnings and dividends being paid out.