Stocks across the technology sector are gaining today following positive testimony from Federal Reserve Chair Jerome Powell and Secretary of the Treasury Janet Yellen. The upward lift in Zoom (NASDAQ:ZM), Facebook (NASDAQ:FB), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) continues the upward trend for tech stocks this week.
Testifying before the U.S. House Financial Services committee, Powell said the Fed expects “inflation will move up over the course of this year,” but said the impact would be “neither particularly large nor persistent.”
Secretary Yellen said the U.S. “may see a return to full employment next year” and expressed support for higher corporate taxes to fund President Joe Biden’s proposed infrastructure and jobs plan.
The positive outlook on the ongoing U.S. economic recovery is particularly helpful for growth stocks (like those in the tech sector), which have been additionally bolstered by easing 10-year Treasury yields. While some experts say those yields haven’t yet peaked, yields did dip immediately following Powell’s testimony.
The generally supportive economic climate isn’t the only reason these tech stocks are climbing. ZM stock just announced plans to license Zoom video conferencing technology to other companies. And movement in MSFT stock is likely focused on reports the tech giant is looking to acquire Discord for $10 billion.
Meanwhile, FB stock popped more than 4% on Friday following Thursday comments by CEO Mark Zuckerberg that changes to Apple’s (NASDAQ:AAPL) privacy policies would actually help Facebook. Last week, Amazon Prime acquired streaming rights to the NFL’s “Thursday Night Football” brand, a step into the future for sports streaming and a boost for AMZN stock.
On the date of publication, Vivian Medithi did not have (either directly or indirectly) any positions in the securities mentioned in this article.