Tech stocks bounce back on the heels of strong Twitter, Microsoft and Tesla earnings

Key Points
  • Tech stocks rose Thursday after an ugly day Wednesday.
  • The lift comes on the heels of positive earnings reports by Twitter on Thursday and Microsoft and Tesla on Wednesday.
Microsoft CEO Satya Nadella
Justin Sullivan/Getty Images

Tech stocks rallied Thursday on the heels of several positive tech earnings reports. The Nasdaq Composite Index closed up 2.95 percent on Thursday, a day after closing down 4.43 percent.

Following plummeting stocks across the sector on Wednesday, tech companies already started to see a lift after the bell when Microsoft and Tesla both reported estimate-beating earnings. Twitter reported positive earnings before the bell on Thursday, sending the stock soaring as high as 17 percent.

Twitter beat revenue and earnings estimates despite purging a large chunk of suspected bot accounts earlier this year. While Twitter reported lower monthly active users, its daily active users have increased. Following Twitter's earnings release, Snap saw a lift over 3 percent in premarket trading and closed the day up 6.37 percent shortly before its own earnings release.

Twitter's issues sound like a one-time quarter, says analyst