Weekly Wrap

The stock market delivered a modestly higher finish this week, with the S&P 500 and Nasdaq Composite eclipsing record highs multiple times throughout the week—including the S&P 500 breaking above the 7,200 level for the first time—as solid earnings growth and selective mega-cap strength helped offset a more cautious macro backdrop surrounding the latest FOMC meeting.

Despite the relatively muted index-level gains, this week featured meaningful crosscurrents beneath the surface. Strong earnings results—particularly from several mega-cap names—remained a key pillar of support, though reactions were mixed as elevated expectations and increased scrutiny around capital expenditures created more dispersion in price action. Alphabet (+12.0%) stood out as a major winner following a strong earnings report, while Meta Platforms (-9.8%) moved sharply lower despite topping estimates, reflecting investor sensitivity to forward guidance and spending trends.

The Federal Reserve meeting also loomed large over the week. While the Fed ultimately held rates steady as expected, the tone of the meeting reinforced a data-dependent outlook, with policymakers acknowledging persistent inflation pressures—particularly those tied to energy—while stopping short of signaling an imminent policy shift. This contributed to a somewhat restrained risk appetite, especially compared to the stronger momentum seen in prior weeks.

Sector performance reflected this mixed backdrop. Communication services (+4.5%) led by a wide margin, driven largely by earnings-fueled gains in mega-cap constituents, while energy (+3.2%) also outperformed amid firm oil prices earlier in the week. Defensive sectors such as consumer staples (+1.1%), utilities (+0.7%), and health care (+0.7%) posted solid gains, signaling some rotation toward more balanced positioning.

On the other hand, materials (-2.0%) lagged notably, while the information technology sector (+0.1%) finished little changed despite continued strength in select semiconductor and software names. The PHLX Semiconductor ETF (+0.8%) and iShares Expanded Tech-Software ETF (+1.7%) both posted gains, though performance within these groups was uneven.

Market breadth was somewhat better than the headline moves might suggest. Small-cap stocks participated in the advance, with the Russell 2000 (+0.9%) matching the S&P 500’s gain, while the S&P Mid Cap 400 finished flat.

Overall, the market maintained its footing near record highs, supported by resilient earnings growth and pockets of strong leadership. However, this week’s more measured advance highlights a market that is becoming increasingly selective, as investors weigh strong corporate performance against macro uncertainty and a still-evolving policy outlook.

• Nasdaq Composite: +1.1% week-to-date
• Russell 2000: +0.9% week-to-date
• S&P 500: +0.9% week-to-date
• DJIA: +0.6% week-to-date
• S&P Mid Cap 400: unch week-to-date

Monday:

Stocks posted mixed performances to start the week, though steady improvement in mega-cap and tech names throughout the session pushed the S&P 500 (+0.1%) and Nasdaq Composite (+0.2%) to fresh record highs.

The DJIA (-0.1%) initially outperformed its counterparts as tech and other growth stocks opened lower this morning, but weakness in the broader market ultimately saw the index close slightly lower.

Most importantly, movement in the top-weighted information technology sector (+0.5%) played a key role in today's action. Semiconductor stocks, which propelled the market to record highs last week, opened sharply lower this morning. Most stocks in the group, such as Coherent (COHR 321.53, -14.56, -4.33%) and Super Micro Computer (SMCI 27.88, -1.20, -4.14%), charted a lower finish as well, and the PHLX Semiconductor Index finished 1.0% lower.

However, the market's largest company by market capitalization, NVIDIA (NVDA 216.61, +8.34, +4.00%), outperformed despite weakness across the chipmaker group. The Vanguard Mega Cap Growth ETF (+0.2%) finished modestly higher after trading lower for the first half of the session.

Intel (INTC 84.99, +2.45, +2.97%) also continued to shine after its earnings report last week, while memory stocks such as Micron (MU 524.56, +27.84, +5.60%) contributed to the strength. The technology sector was one of just four S&P 500 sectors to chart a gain today.

Meanwhile, the communication services sector (+0.9%) led the advance. Alphabet (GOOG 348.52, +6.20, +1.81%) was another mega-cap standout ahead of its earnings release on Wednesday evening, while Verizon (VZ 47.09, +0.71, +1.53%) captured a decent gain after an EPS beat and upside FY26 guidance.

The financials sector (+0.7%) was another top-mover, supported by broad strength and solid gains across investment manager names, while the utilities and industrials sectors both finished flat.

Losses were relatively modest in nature, though the consumer staples sector (-1.2%) faced pronounced weakness across discount store names such as Dollar Tree (DLTR 98.00, -5.75, -5.54%), Dollar General (DG 117.34, -3.37, -2.79%), and Walmart (WMT 127.59, -2.33, -1.79%).

The consumer discretionary sector (-0.8%) also lagged today, though it finished well off its session lows as Tesla (TSLA 378.67, +2.37, +0.63%) turned a sizable loss into a decent gain. Amazon (AMZN 261.07, -2.92, -1.11%) still logged a firmly lower finish, while Domino's Pizza (DPZ 335.30, -32.53, -8.84%) was the worst-performing S&P 500 component after mixed Q1 results, pressured by a second consecutive EPS miss and softer-than-expected same-store sales.

Today was relatively quiet on the geopolitical front, with little in the way of headline volatility between the U.S. and Iran after President Trump cancelled his envoy's trip to Pakistan over the weekend, but left the door open for over-the-phone talks. Crude oil futures settled today's session $1.97 higher (+2.1%) at $96.39 per barrel.

Overall, it was a somewhat muted start to the week. The S&P 500 and Nasdaq Composite inched further into record territory, though leadership remains thin and concentrated across tech and mega-cap names. That leadership will be put to the test this week as five of the "Magnificent Seven" names are set to report earnings, along with a host of other high-profile names. Other notable catalysts include Wednesday's FOMC decision, while U.S.-Iran negotiations add a backdrop of potential geopolitical volatility.

U.S. Treasuries began the week with modest losses across the curve, pushing yields toward their highs from last week. The market briefly bounced off morning lows after a lukewarm $69 billion 2-year note sale, but the entire complex faced some renewed pressure that had all tenors hitting fresh lows in the wake of a $70 billion 5-year note offering, which met poor demand.

The 2-year note yield settled up two basis points to 3.80%, and the 10-year note yield settled up three basis points to 4.34%. 

There was no economic data of note today. 

Tuesday:

The S&P 500 (-0.5%) and Nasdaq Composite (-0.9%) did not extend their streak of record highs today as tech and mega-cap names faced some profit-taking after the recent stretch of leadership. There was some rotational activity into more defensive holdings and other parts of the market that helped the DJIA (-0.1%) close just below its flatline.

Weakness across semiconductor stocks weighed on the Nasdaq Composite in particular. After snapping an 18-session winning streak yesterday, the PHLX Semiconductor Index (-3.6%) faced a steeper retreat today, exacerbated by a Wall Street Journal report indicating that OpenAI missed internal revenue and user targets, raising concerns about its ability to fund future computing needs.

NVIDIA (NVDA 213.07, -3.54, -1.63%) was a "magnificent seven" laggard, and Corning (GLW 153.05, -14.96, -8.90%) faced pressure after topping earnings estimates and issuing in-line guidance, though the stock had been on an impressive run-up into its earnings report this morning.

The top-weighted information technology sector (-1.3%) finished as the worst-performing S&P 500 sector.

Outside of the tech space, earnings were a key driver of price action. The materials sector (-1.1%) faced pressure as precious metals prices retreated, though Nucor (NUE 225.11, +10.11, +4.70%) delivered a solid earnings report while Sherwin-Williams (SHW 324.27, -11.83, -3.52%) moved lower after its own results. Coca-Cola (KO 78.35, +2.91, +3.86%) was a notable standout, contributing to strength in the defensive consumer staples sector (+1.0%), while Pentair (PNR 82.86, -9.41, -10.20%) was among the worst-performing S&P 500 components, weighing on the industrials sector (-0.9%).

Meanwhile, the energy sector (+1.7%) captured the widest gain as crude oil futures settled $3.56 higher (+3.7%) at $99.95 per barrel. Headlines surrounding U.S.-Iran talks were relatively quiet, though Reuters reported that the UAE will leave OPEC and OPEC+.

All told, today's session reflects some caution ahead of an eventful day tomorrow. The market will receive the latest FOMC decision, where the Fed is widely expected to leave rates unchanged, though investors will be closely focused on any commentary that could suggest whether a potential rate hike remains on the table. In addition, four "Magnificent Seven" companies are set to report earnings after the close, while mega-cap leadership showed signs of fatigue today, with the Vanguard Mega Cap Growth ETF retreating 0.9%.

U.S. Treasuries of most tenors retreated for the second consecutive day while the long bond outperformed, recovering its opening loss.  The U.S. Treasury capped this week's note auction slate with a weak sale of $44 billion in 7-year notes, but post-auction selling was short-lived. The 2-year note yield settled up four basis points to 3.84%, and the 10-year note yield settled up two basis points to 4.35%.

Reviewing today's data:

• February FHFA Housing Price Index 0.0% (Briefing.com consensus 0.2%); Prior was revised to 0.2% from 0.1%
• February S&P Case-Shiller Home Price Index 0.9% (Briefing.com consensus 1.2%); Prior 1.2%
• April Consumer Confidence 92.8 (Briefing.com consensus 89.2); Prior was revised to 92.2 from 91.8
  • The key takeaway from the report is that consumer attitudes were helped in April by perceptions of the labor market and income expectations.

Wednesday:

Visa's (V 334.86, +25.56, +8.26%) stellar beat-and-raise report offset broader weakness and a sharp decline from Robinhood Markets (HOOD 71.20, -10.87, -13.24%) in the financials sector (+0.1%), while T-Mobile US (TMUS 198.17, +11.45, +6.13%) and Starbucks (SBUX 105.50, +8.22, +8.45%) led strength in the communication services (-0.1%) and consumer discretionary (+0.1%) sectors.

The information technology sector (+0.2%) also managed a modestly higher finish as semiconductor names outperformed after two consecutive weaker showings. The PHLX Semiconductor Index (+2.4%) roughly halved its week-to-date loss, supported by strong post-earnings showings from Seagate Tech (STX 643.30, +64.27, +11.10%) and NXP Semi (NXPI 289.25, +58.86, +25.55%).

Intel (INTC 94.75, +10.23, +12.10%) also notched a double-digit gain.

On the macro front, today's April FOMC decision did not surprise in the sense that the FOMC voted to keep the Fed Funds Target Range unchanged at 3.5%-3.75%. Fed Governor Stephen Miran's dissent in favor of a rate reduction was also unsurprising.

The surprise with this directive is that it featured three Fed presidents - Hammack (Cleveland), Kashkari (Minneapolis), and Logan (Dallas) - dissenting over the language of the directive. Specifically, the three presidents, who supported maintaining the target range at 3.50-3.75%, did not support the inclusion of an easing bias in the statement at this time.

Additionally, Fed Chair Jerome Powell said he will continue to serve as a governor for a period of time after his term as chair ends on May 15, noting he plans to keep a low profile as a governor.

On the topic of inflation, Mr. Powell said, "In the near term, higher energy prices will push up overall inflation. Beyond that, the scope and the duration of the potential effects on the economy remain unclear."

Attention now turns to this afternoon's sizable batch of earnings reports, which will include results from four "magnificent seven" names in Amazon (AMZN 263.04, +3.34, +1.29%), Alphabet (GOOG 347.31, -0.19, -0.05%), Meta Platforms (META 669.12, -2.22, -0.33%), and Microsoft (MSFT 424.46, -4.79, -1.12%). All four names are up well over 10% this month as mega-cap tech has led the rebound from March lows, as the market attempts to look past the effects of the U.S.-Iran conflict.

However, massive capital expenditure plans related to AI investments have become a point of scrutiny across the group in recent earnings cycles, while today's headlines and increase in oil prices suggest that macro pressures could complicate the near-term outlook for both margins and demand. All told, the market remains at an inflection point, with elevated valuations in mega-cap tech set against rising input costs and geopolitical uncertainty. The upcoming earnings reports will be critical in determining whether recent leadership can be sustained or if a broader pullback is warranted.

Reviewing today's data:

• Weekly MBA Mortgage Applications Index -1.6%; Prior 7.9%
• February Housing Starts 1.356 mln; Prior was revised to 1.398 mln from 1.487 mln, February Building Permits 1.538 mln; Prior was revised to 1.386 mln from 1.376 mln, March Housing Starts 1.502 mln; Prior 1.356 mln, March Building Permits 1.372 mln; Prior 1.538 mln
  • The key takeaway from the report is that there was broad-based strength in starts by region but also broad-based weakness in permits by region. The latter is the better indicator for the impact of the Iran war and the uncertainty it has created because permits are a leading indicator.
• March Durable Orders 0.8% (Briefing.com consensus 0.5%); Prior was revised to -1.2% from -1.4%, March Durable Goods -ex transportation 0.9% (Briefing.com consensus 0.6%); Prior was revised to 1.2% from 0.8%
  • The key takeaway from the report is that there was a big jump (+3.3%) in new orders for nondefense capital goods excluding aircraft. This is a proxy for business spending, and it is believed to reflect in part the pickup in capital expenditures for AI initiatives.
• March Adv. Intl. Trade in Goods -$87.9 bln; Prior -$83.5 bln
• March Adv. Retail Inventories 0.7%; Prior 0.3%
• March Adv. Wholesale Inventories 1.4%; Prior 0.9%

Thursday:

Stocks rallied in the final session of the month as strong earnings growth from some of the market's largest components propelled the S&P 500 (+1.0%) and Nasdaq Composite (+0.9%) to fresh record highs, while the DJIA (+1.6%) captured an even wider gain for the day. Following the latest batch of earnings, the Q1 blended growth estimate jumped from 15% yesterday to 26% today, according to FactSet, helping set the stage for a broad-based advance.

Ten S&P 500 sectors finished higher, led by a substantial gain in the communication services sector (+4.0%) following Alphabet's (GOOG 381.94, +34.63, +9.97%) Q1 earnings, which exceeded expectations across all major segments, supported by accelerating AI-driven demand and improved operating leverage. Alphabet's gain was more than enough to offset weakness in Meta Platforms (META 611.91, -57.21, -8.55%), which also topped estimates, although investors reacted negatively to in-line Q2 guidance and a sharp increase in the company's FY26 capital expenditure plans.

Elsewhere, Caterpillar (CAT 890.75, +80.70, +9.96%) was one of several blue-chip stocks to post impressive gains after a blowout earnings report of its own, contributing to the outperformance of both the DJIA and the industrials sector (+2.8%).

Eli Lilly (LLY 934.34, +83.13, +9.77%), the health care sector's (+2.2%) largest component, notched a similar gain, as it also posted a decisive earnings beat that was boosted by a 125% increase in Mounjaro sales.

While the consumer discretionary sector (+1.2%) logged a more modest advance, its sharp move above its flat line in the early afternoon helped the major averages finish near session highs. Amazon (AMZN 265.06, +2.02, +0.77%) faced some choppy action as investors weighed a strong EPS beat and upside revenue growth against elevated capital spending and a recent run-up to earnings, but finished with a nice gain.

Meanwhile, the top-weighted information technology sector (-0.6%) was the only S&P 500 sector to miss out on today's advance.

Similar to Meta Platforms, Microsoft (MSFT 407.78, -16.68, -3.93%) topped earnings expectations, but moved sharply lower as investors reacted to elevated capital expenditure plans.

NVIDIA's (NVDA 199.53, -9.72, -4.64%) loss also weighed heavily on the sector, with some analysts attributing the retreat to rising competition from other hyperscalers such as Alphabet and Amazon. Still, the PHLX Semiconductor Index (+2.3%) moved higher throughout the session, led by an impressive post-earnings gain from Qualcomm (QCOM 179.58, +23.58, +15.12%) and a rebound in Teradyne (TER 343.47, +37.14, +12.12%) following yesterday's slide.

Western Digital (WDC 434.52, +21.76, +5.27%) and Apple (AAPL 271.35, +1.13, +0.42%) both traded higher ahead of their earnings after the close. 

Outside of the S&P 500, the Russell 2000 (+2.2%) and S&P Mid Cap 400 (+1.7%) outperformed.

Overall, today's session capped a historic month for equities that saw the market reclaim losses attributed to the U.S.-Iran conflict and make a renewed push into record territory. To that end, the U.S. and Iran seemingly remain at an impasse on negotiations, but a modest retreat in oil prices today added to the constructive backdrop.

The S&P 500 (+10.4% month-to-date), Nasdaq Composite (+15.3% month-to-date), and DJIA (+7.1% month-to-date) each logged strong monthly advances, highlighting a powerful rebound that carried the market back to record highs alongside a notable acceleration in earnings growth.

U.S. Treasuries ended April on a higher note, reclaiming a portion of their losses from this month. The 2-year note yield settled down five basis points to 3.88% (+8 basis points in April), and the 10-year note yield settled down three basis points to 4.39% (+8 basis points in April).

Reviewing today's data:

• Q1 GDP-Adv. 2.0% (Briefing.com consensus 2.1%); Prior 0.5%, Q1 Chain Deflator-Adv. 3.6% (Briefing.com consensus 3.3%); Prior 3.7%
  • The key takeaway from the report is that the growth was driven by gross private domestic investment, which contributed 1.48 percentage points, and personal consumption expenditures, which contributed 1.08 percentage points to the GDP increase. Not to be overlooked, though, is that the PCE price index was up 4.5%, while the core PCE price index was up 4.3%.
• March Personal Income 0.6% (Briefing.com consensus 0.4%); Prior was revised to 0.0% from -0.1%, March Personal Spending 0.9% (Briefing.com consensus 0.4%); Prior was revised to 0.6% from 0.5%, March PCE Prices 0.7% (Briefing.com consensus 0.6%); Prior 0.4%, March PCE Prices - Core 0.3% (Briefing.com consensus 0.3%); Prior 0.4%
  • The key takeaway from the report is that spending has remained solid in the face of stubbornly high inflation—a dynamic that is going to leave the Fed disinclined to cut rates.
• Q1 Employment Cost Index 0.9% (Briefing.com consensus 0.8%); Prior 0.7%
  • The key takeaway from the report is that the increase in wages and salaries for civilian workers over the last 12 months (3.4%) is barely running ahead of inflation.
• Weekly Initial Claims 189K (Briefing.com consensus 217K); Prior was revised to 215K from 214K, Weekly Continuing Claims 1.785 mln; Prior was revised to 1.808 mln from 1.821 mln
  • The key takeaway from the report is the strikingly low number of initial claims. That just isn't consistent with a labor market that is falling apart—far (very far) from it.
• April Chicago PMI 49.2 (Briefing.com consensus 52.4); Prior 52.8

Friday:

The S&P 500 (+0.3%) and Nasdaq Composite (+0.9%) started May on a high note as strength in mega-cap and tech names propelled the indices to fresh record highs, while the DJIA (-0.3%) lagged amid weakness in the broader market.

Only two S&P 500 sectors finished in positive territory, though the top-weighted information technology sector's gain was wide enough to prompt index-level growth.

Apple (AAPL 280.14, +8.79, +3.24%) kept momentum rolling across mega-cap tech after topping earnings estimates and providing upside guidance for the next quarter, while Microsoft (MSFT 414.20, +6.42, +1.57%) recovered some of yesterday's post-earnings weakness.

Though not a component of the S&P 500, Atlassian (TEAM 88.88, +20.29, +29.58%) was another notable earnings standout, and the iShares GS Software ETF finished 3.2% higher.

The PHLX Semiconductor Index (+0.9%) also finished higher amid a busy week for memory storage names. Sandisk (SNDK 1187.00, +90.49, +8.25%) moved sharply higher after earnings while Western Digital (WDC 431.52, -3.00, -0.69%) faced some sell-the-news pressure, and Seagate Tech (STX 726.93, +53.29, +7.91%) extended yesterday's massive rally.

The consumer discretionary sector (+0.5%) was the only other sector to finish with a gain, supported by strength in its mega-cap components Tesla (TSLA 390.82, +9.19, +2.41%) and Amazon (AMZN 268.26, +3.20, +1.21%).

The Vanguard Mega Cap Growth ETF finished 0.9% higher, helping the market-weighted S&P 500 (+0.3%) outperform the S&P 500 Equal Weighted Index (-0.3%).

Elsewhere in the sector, cruise lines and courier names outperformed as oil prices retreated today, with crude oil futures settling today's session $3.31 lower (-3.2%) at $101.84 per barrel.

The energy sector (-1.3%) was the worst-performing S&P 500 sector as a result.

The industrials sector (-0.9%) also underperformed after yesterday's sharp gain that followed CAT's earnings release, though airline names such as United Airlines (UAL 92.52, +2.52, +2.80%) and Southwest Air (LUV 38.76, +0.84, +2.22%) traded higher amid the retreat in oil prices and reports that Spirit Airlines is preparing to shut down operations.

Losses across the other S&P 500 sectors were modest in nature as the market ended the week in a relatively quiet fashion after a record-setting week.

Still, strong mega-cap and tech leadership, which was largely a product of impressive earnings growth, has the S&P 500 and Nasdaq Composite pushing further into record territory to start the month of May.

U.S. Treasuries started May on a quiet note, largely thanks to Labor Day closures that significantly reduced the participation of international investors on Friday. The 2-year note yield settled up one basis point to 3.89% (+11 basis points this week), and the 10-year note yield settled down one basis point to 4.38% (+7 basis points this week).

• Russell 2000: +13.3% YTD
• S&P Mid Cap 400: +10.1% YTD
• Nasdaq Composite: +8.1% YTD
• S&P 500: +5.6% YTD
• DJIA: +3.0% YTD

Reviewing today's data:

• April S&P Global U.S. Manufacturing PMI - Final 54.5; Prior 54.0
• April ISM Manufacturing Index 52.7% (Briefing.com consensus 53.1%); Prior 52.7%
  • The key takeaway from the report is that it had some stagflation aspects for the manufacturing sector, namely low growth, a further contraction in employment, and a stark increase in the prices index, which has risen 25.6 percentage points in the last three months.