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Wall Street closed out the week on a positive note as upbeat corporate earnings and signs of thawing U.S.-China trade tensions gave markets a much-needed boost.
The Dow Jones Industrial Average inched up by 20.10 points (0.05%) to close at 40,113.50, while the S&P 500 added 40.44 points (0.74%) to settle at 5,525.21. The Nasdaq Composite surged 216.90 points (1.26%), ending the session at 17,382.94.
The week was dominated by investor focus on first-quarter earnings, with tech-heavy and AI-driven stocks — often referred to as the “Magnificent Seven” — lifting the S&P 500 and Nasdaq. The Dow, meanwhile, saw modest movement, reflecting mixed performance among traditional blue-chip stocks.
Notably, the Russell 2000, a small-cap index, posted its best weekly percentage gain since November, suggesting renewed investor confidence in domestic growth-focused companies.
Trade Talks Offer Relief
Tensions in the ongoing U.S.-China trade dispute appeared to ease slightly after Beijing exempted select U.S. imports from steep tariffs. However, Chinese officials denied recent negotiation claims made by former U.S. President Donald Trump. Treasury Secretary Scott Bessent’s recent comments also hinted at a move towards de-escalation, boosting market sentiment.
Greg Bassuk, CEO of AXS Investments, commented, “It’s been a strong week, largely sparked by optimism around easing trade war concerns and solid earnings performance.”
Earnings Season Highlights
With 179 S&P 500 companies having reported earnings so far, 73% have beaten analysts’ estimates, according to LSEG. Earnings growth for the January–March period now stands at 9.7% year-on-year, up from an 8.0% forecast at the beginning of April.
Still, investors are keeping a close eye on forward guidance, with some companies pulling or lowering projections due to economic uncertainties and signs of softening consumer spending.
Key Movers
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Alphabet (GOOGL) gained 1.7% after reporting a 28% increase in Google Cloud revenue.
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Intel (INTC) slid 6.7% on weak revenue and profit forecasts.
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SLB (Schlumberger) declined 1.2% after missing profit expectations and warning of broader industry risks.
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Charter Communications (CHTR) soared 11.4% following a strong earnings beat and robust subscriber growth.
Market Breadth and Volume
Advancing issues outnumbered decliners on both the NYSE and Nasdaq. On the NYSE, the advance-decline ratio stood at 1.33-to-1, while Nasdaq saw a 1.14-to-1 ratio.
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NYSE: 54 new highs vs. 27 new lows
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Nasdaq: 32 new highs vs. 47 new lows
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Volume: 14.30 billion shares traded, lower than the 20-day average of 19.13 billion
Disclaimer:
This article is for informational purposes only and does not constitute financial advice, investment recommendations, or an endorsement of any securities or strategies. Readers should consult a qualified financial advisor before making investment decisions.
