April 23 Reuters U.S. stocks rose in a broad rally on Friday as increased factory output and housing data supported expectations of a swift economic recoverywhile big tech stocks rose in anticipation of strong earnings reports next week.

The bounceback follows a selloff on Thursday when reports that U.S. President Joe Biden plans to almost double the capital gains tax spooked some investors. Analysts dismissed the selloff as a kneejerk reaction, saying equities are poised for new highs.

The broadbased SP 500 rose more than 1, trading just below what would be a new record close, while the techheavy Nasdaq scored a bigger percentage gain.

Earnings take center stage next week when 40 of the SP 500s market cap report on Tuesday through Thursday, including the tech heavyweights of Microsoft Corp, Google parent Alphabet Inc, Apple Inc and Facebook Inc .

Those names, including Amazon.com Inc, supplied the biggest upside to a rally where advancing shares easily outpaced decliners.

Companies are providing guidance after staying quiet during the pandemic, while lower bond yields and results that beat estimates are driving the rally, said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.

There is a lot of anticipation of whats to come, he said. Weve seen actual reports beating these very high expectations. Yields have come back down, which is very positive for tech.

Firstquarter earnings are expected to increase 33.9 from a year ago, the highest…