Wednesday 3 February 2021 8:59 pm

Wall Street rallies on strong tech earnings as FTSE 100 slips

Wall Street pushed higher today on the back of strong tech earnings, but the FTSE 100 closed in the red after early losses were reserved.

The Dow Jones was up 0.26 per cent shortly before markets closed, while the S&P 500 and Nasdaq rose 0.28 per cent and 0.18 per cent respectively.

It marked the third day of gains for US stocks, which were driven higher by strong quarterly earnings for Amazon and Alphabet.

London’s main index opened higher, but shares soon went into reverse and closed down 0.14 per cent.

The more domestically-focused FTSE 250 fared better, closing up 0.30 per cent.

Tech boost

The positive trading for US stocks followed strong quarterly showing from heavyweights Alphabet and Amazon, while investors counted on more fiscal stimulus to aid an economic recovery.

Shares in Google parent Alphabet were up more than seven per cent today.

Gamestop also pushed higher, clawing back some of its losses after nearly halving in value on Tuesday following a period of tumultuous trading driven by social media.

Health check

Meanwhile the FTSE was dragged down by sharp declines in healthcare stocks.

Glaxosmithkline was the biggest drag on the index, dropping 6.3 per cent after it warned of a bigger-than-expected fall in earnings in 2021.

Astrazeneca, Smith & Nephew and Hikma Pharmaceuticals also slipped lower.

Elsewhere, Asian shares and U.S. stock futures rose today as governments around the world looked poised to boost spending to help economies recover from the coronavirus and vaccine roll-out programs accelerated.