Stock Market Update

[BRIEFING.COM] The stock market closed a winning week on a high note. The major equity indices overcame early selling pressure to finish in the green near session highs. The S&P 500 settled 0.7% higher and the Nasdaq Composite rose 1.3% while the Dow Jones Industrial Average lagged its peers, rising 0.1% from yesterday.

Gains in the major indices since last week ranged from 2.5% to 6.7%.

Mega cap stocks provided significant support to the broader equity market today. Alphabet (GOOG 163.85, +2.38, +1.5%) was among the winners after reporting earnings, as was Tesla (TSLA 284.95, +25.44, +9.8%), which continued its post-earnings rally. The Vanguard Mega Cap Growth ETF (MGK) jumped 1.7%. 

Gains in the aforementioned names propelled their respective S&P 500 sectors -- communication services (+1.0%) and consumer discretionary (+2.0%) -- toward the top of the leaderboard. The technology sector also benefitted from outsized moves in its mega cap components, closing 1.6% higher. 

The price action in Treasuries, along with this morning's economic data, contributed to the upside bias in the stock market. The final April reading of the University of Michigan Index of Consumer Sentiment rose to 52.2 (Briefing.com consensus 48.5) from the preliminary reading of 50.8. However, even with that uptick, consumer sentiment remains at levels last seen as the world emerged from the coronavirus pandemic with year-ahead inflation expectations (6.5%) at a level not seen since 1982.

The 10-yr yield was four basis points lower at 4.27% and the 2-yr yield was three basis points lower at 3.76%.

Looking ahead to next week, there is no US economic data on Monday.