How Microsoft’s Fiscal 4Q17 Results Influenced the S&P 500
S&P 500 to hit all-time high
Microsoft (MSFT), Apple (AAPL), Alphabet (GOOG), Amazon.com (AMZN), and Facebook (FB) are among the ten-largest cap companies that constitute the S&P 500 (SPY). These tech companies have all recently announced their quarterly results, which have collectively beaten analyst estimates by 7.7%—more than any other sector group in the S&P 500 Index. (Amazon’s revenue managed to exceed the analysts’ estimate but fell short on earnings.)
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On the day Microsoft announced its fiscal 4Q17 results, the S&P 500 IT Index closed at 992.3—its all-time high. It also broke its previous record of 988.5, set back in March 2000. This surge provided a boost to the S&P 500 Index (VOO), which hit 2,477.62, also an all-time high.
Tech sector outperformed other sectors
In 2017, investors have preferred tech stocks, as there has been a widespread feeling that the US economy (COMP-INDEX) could be on a growth track.
Microsoft, along with Apple (AAPL), Amazon.com (AMZN), Facebook (FB), and Alphabet (GOOG), are among the ten-largest companies in the S&P 500 by market cap. The improved performance of technology sector has made IT (information technology) represent close to one-quarter of the index.
Healthcare, financials, consumer discretionary, consumer staples, and utilities are also among the prominent industries of the S&P 500 Index, which reflects the overall state of the economy.