Wall Street wrapped up the week on a bullish note, with the S&P 500 climbing 0.7% on Friday to lock in a 4.1% weekly gain, its best since January. The NASDAQ Composite advanced 1.3%, buoyed by tech strength, while the Dow Jones Industrial Average edged up 0.1%.
The gains were largely fueled by Alphabet’s stronger-than-expected earnings and a $70 billion stock buyback announcement, which reignited investor confidence in the long-term potential of artificial intelligence (AI). Optimism surrounding AI’s impact on future tech revenue helped extend a rally that has pushed markets higher throughout April.
However, a note of caution remained. Despite the earnings beat, Alphabet faces ongoing legal risks, with a federal judge set to evaluate potential remedies in a major antitrust case on May 2.
Tech Sector Rallies on AI Momentum
Alphabet’s upbeat performance and strategic focus on AI development lifted broader tech stocks, with NVIDIA and Meta Platforms both posting strong gains. The sector’s rally reflected investor conviction that demand for AI infrastructure—including chips and cloud services—will continue to expand.
Not all tech news was positive:
- Intel shares fell 6.4% after weak forward guidance, citing macroeconomic and trade uncertainties.
- T-Mobile US dropped 11%, as subscriber growth disappointed amid fierce competition.
- Colgate-Palmolive rose 1% despite trimming full-year organic sales guidance, highlighting tariff concerns.
Key drivers of tech sentiment:
- Strong Alphabet results and $70B buyback
- Legal scrutiny and antitrust risk
- Intel’s macro headwinds
- Meta and NVIDIA riding AI tailwinds
With earnings season in full swing, investors now await updates from Microsoft and Apple, where guidance will be closely watched amid global economic headwinds.
Tariff Policy Clouds Outlook
Market sentiment took a hit late Friday after President Donald Trump told Time magazine that he’d consider tariffs of 20% to 50% on foreign imports a “total victory” one year from now. This rattled hopes for a near-term resolution to trade disputes, particularly with China.
Yet some signs of de-escalation emerged. China’s Ministry of Commerce is reviewing U.S. goods that may be exempted from its retaliatory tariffs. Reuters reported that a taskforce is seeking input from local businesses on potential items to exclude.
Economic data offered some relief, with the University of Michigan’s consumer sentiment index falling only modestly to 52.2, slightly above expectations.
In Summary:
- S&P 500: +4.1% for the week
- NASDAQ: Led by Alphabet, Meta, NVIDIA
- Risks ahead: Trade tensions, tech regulation, macro outlook
Investors remain cautiously optimistic, balancing AI-driven growth potential with geopolitical and policy uncertainty.