After Hours Report

The stock market turned in another strong showing this week, with the S&P 500 (+2.3%) and Nasdaq Composite (+4.5%) climbing deeper into record territory as semiconductor and mega-cap technology stocks resumed their leadership role. Broader participation was also constructive, with the Russell 2000 (+1.7%) and S&P Mid Cap 400 (+1.7%) both advancing alongside large-cap benchmarks. The Nasdaq Composite outperformed meaningfully thanks to a powerful rally across chipmakers and AI-related names, while the DJIA (+0.2%) lagged amid weakness in defensive sectors and limited industrial participation.

Geopolitical tensions and fluctuations in oil prices remained a key backdrop throughout the week. Stocks opened lower on renewed hostilities between the U.S. and Iran, briefly sending crude oil above $106/bbl, before easing tensions and improving negotiation optimism helped oil retreat sharply into week’s end. That reversal removed a key macro headwind and supported risk appetite, particularly in growth-oriented areas of the market.

Technology stocks were the clear leadership group throughout the week. The information technology sector surged 7.0%, while the PHLX Semiconductor Index rocketed 11.1% higher amid another wave of AI-driven enthusiasm and strong earnings growth. NVIDIA (NVDA) climbed 8.4%, while names such as Advanced Micro Devices, Intel, Micron, and Sandisk posted outsized gains across the chip space.

Software stocks also delivered solid relative strength, with the iShares Expanded Tech-Software ETF climbing 5.2% following several strong post-earnings reactions.

Meanwhile, the Vanguard Mega Cap Growth ETF advanced 4.0%, underscoring that much of the S&P 500’s strength was driven by mega-cap leadership.

That same mega-cap strength carried into other growth-sensitive areas of the market. The communication services (+1.9%) and consumer discretionary (+1.8%) sectors both posted solid gains, reflecting continued leadership from large-cap platforms and consumer-facing tech-driven companies, reinforcing the theme that index gains were concentrated in the largest, most influential stocks.

Meanwhile, falling oil prices pressured the energy sector (-5.4%), which finished as the week’s weakest-performing S&P 500 sector. Utilities (-4.0%) and financials (-1.4%) also lagged as investors rotated toward higher-beta growth and technology exposure.

Overall, the week reinforced the market’s ongoing AI-driven leadership theme. Strong earnings growth, easing geopolitical fears, and renewed momentum across semiconductors and mega-cap technology stocks helped propel the S&P 500 and Nasdaq Composite further into record territory.

• Nasdaq Composite: +4.5% week-to-date
• S&P 500: +2.3% week-to-date
• Russell 2000: +1.7% week-to-date
• S&P Mid Cap 400: +1.7% week-to-date
• DJIA: +0.2% week-to-date

Monday:

The S&P 500 (-0.4%) and Nasdaq Composite (-0.2%) took a modest step back from Friday's record highs as renewed hostilities between the U.S. and Iran prompted a spike in oil prices, weighing on stocks. There was some early enthusiasm across select tech and mega-cap names, which saw the two indices trade higher for most of the morning before mounting pressure forced them lower.

Meanwhile, the DJIA (-1.1%) spent the entire session below its flatline.

Stocks moved lower in broad fashion just before midday in response to headlines that the UAE intercepted a wave of missiles from Iran. More reports of Iranian cruise missile attacks against U.S. military ships in the region followed, with the U.S. Central Command saying they sank several Iranian boats in response. The escalation in hostilities throws an already tenuous ceasefire further into question, weighing on stocks and U.S. Treasuries as oil prices spiked.

Crude oil futures settled today's session $4.44 higher (+4.4%) at $106.28 per barrel. As a result, the energy sector (+0.6%) was the only S&P 500 sector to escape with a gain.

There was, however, some resilience across the top-weighted information technology sector (-0.2%), with its rebound from session lows helping limit losses at the index level. Several prominent chipmaker names, such as Advanced Micro Devices (AMD 341.54, -19.00, -5.27%) and Intel (INTC 95.78, -3.84, -3.85%), moved lower, pressuring the PHLX Semiconductor Index (-0.6%). Meanwhile, memory names, such as Micron (MU 576.45, +34.24, +6.31%) and Sandisk (SNDK 1256.01, +69.01, +5.81%), extended their impressive post-earnings run.

Software names also posted a strong showing, with Oracle (ORCL 180.36, +8.53, +4.96%) surging higher and Palantir Technologies (PLTR 146.03, +1.96, +1.36%) notching a solid gain ahead of its earnings after the close. The iShares GS Software ETF finished 2.1% higher.

The consumer discretionary sector (-0.2%) was another relative outperformer, despite just three of its components finishing higher. Amazon (AMZN 272.07, +3.81, +1.42%) and Tesla's (TSLA 392.56, +1.74, +0.45%) mega-cap leadership nearly offset the broader weakness, with Amazon trading higher after announcing the launch of Amazon Supply Chain Services, which will allow the company to offer the entire shipping process for other businesses, not just its own packages.

The announcement weighed heavily on courier names such as UPS (UPS 96.31, -11.26, -10.47%), C.H. Robinson (CHRW 161.24, -16.06, -9.06%), and FedEx (FDX 357.80, -35.87, -9.11%), which were among the worst-performing S&P 500 components. The industrials sector (-1.2%) lagged as a result.

Elsewhere in the consumer discretionary sector, eBay (EBAY 109.33, +5.26, +5.05%)  moved higher after GameStop (GME 23.84, -2.69, -10.14%) made an unsolicited $56 billion cash and stock bid for the company, while Norwegian Cruise Line (NCLH 17.20, -1.61, -8.56%) moved lower after missing revenue estimates and issuing disappointing guidance.

Tyson Foods (TSN 68.75, +5.07, +7.96%) was a standout after topping earnings estimates, but the stock's gain did little to help broader weakness in the consumer staples (-0.7%) sector.

The materials sector (-1.6%) finished with the widest loss, as the surge in oil prices weighed on construction names such as CRH Plc. (CRH 110.80, -4.65, -4.03%) and Vulcan Materials (VMC 287.72, -9.60, -3.23%).

On a related note, the iShares U.S. Home Construction ETF finished 3.8% lower.

Overall, today's session highlighted that "higher for longer" oil prices stemming from the U.S.-Iran conflict remain a headwind for risk assets in the near term. However, today's pullback was modest in the context of the market's recent strength, with the S&P 500 and Nasdaq Composite still near record highs following a five-week winning streak. Recent sessions have shown a tendency for investors to largely look past geopolitical headlines, with strong earnings growth providing a notable tailwind. That dynamic will be tested again this week, as another busy slate of earnings reports is set to drive market direction.

U.S. Treasuries started the week with a daylong slide that sent yields on 10s and 30s to their highest closing levels since mid-July while yields on shorter tenors settled near their highs from March. The 2-year note yield settled up seven basis points to 3.96%, the 10-year note yield settled up seven basis points to 4.45%, and the 30-year note yield settled up six basis points to 5.03%.

Reviewing today's data:

• March Factory Orders 1.5% (Briefing.com consensus 0.5%); Prior was revised to 0.3% from 0.0%
  • The key takeaway from the report is that factory order activity ramped up in March, driven by widespread strength that was punctuated by a big increase (3.4%) in new orders for nondefense capital goods excluding aircraft.

Tuesday:

The stock market rebounded nicely from yesterday's weakness, with the S&P 500 (+0.8%) and Nasdaq Composite (+1.0%) notching fresh record highs, while the DJIA (+0.7%) notched a similar gain for the day. The Russell 2000 (+1.8%) and S&P Mid Cap 400 (+1.3%) outperformed, underscoring the risk-on tone.

The major averages were supported by broad strength, with all eleven S&P 500 sectors finishing at or above their flatlines. A solid gain from the top-weighted information technology sector (+1.6%) contributed to the index-level gains, as semiconductor names outperformed after a weaker showing yesterday.

The PHLX Semiconductor Index finished 4.4% higher, with Intel (INTC 108.18, +12.40, +12.95%) a notable standout after Bloomberg reported Apple (AAPL 284.18, +7.35, +2.66%) may source chips from the company for some of its products. Memory names Micron (MU 640.45, +64.00, +11.10%), Sandisk (SNDK 1406.32, +150.46, +11.98%), and Western Digital (WDC 465.26, +22.90, +5.18%) all extended their post-earnings strength by notching fresh record highs today, while Advanced Micro Devices (AMD 355.26, +13.72, +4.02%) also captured a nice gain ahead of its earnings release after the close.

Meanwhile, software names turned in mixed performances, with the iShares GS Software ETF finishing 0.2% lower. Palantir Technologies (PLTR 135.91, -10.12, -6.93%) was a laggard despite an impressive beat-and-raise earnings report.

Elsewhere, the materials sector (+1.7%) captured the widest gain across S&P 500 sectors after finishing at the bottom of the leaderboard yesterday. Nearly all of the sector's components traded higher, with DuPont (DD 49.23, +3.82, +8.41%) a standout after earnings, while a rebound in metals prices also contributed to the advance.

Gains were relatively modest elsewhere, as the industrials sector (+0.9%) was the only other S&P 500 sector to capture a gain wider than 0.5%. Rockwell Automation (ROK 435.93, +35.62, +8.90%) and Expeditors Intl (EXPD 152.97, +13.26, +9.49%) led the strength after solid earnings reports, with the latter rebounding from yesterday's sharp sell-off across courier names after Amazon (AMZN 273.52, +1.47, +0.54%) announced the launch of Amazon Supply Chain Services.

Other notable post-earnings gainers included Waters (WAT 342.53, +40.65, +13.47%) and Pinterest (PINS 22.28, +1.43, +6.86%), while Shopify (SHOP 107.62, -19.94, -15.63%) and Fiserv (FISV 57.28, -5.53, -8.80%) moved sharply lower after their own earnings reports.

On the geopolitical front, headlines were relatively quiet, with Trump administration officials telling reporters at a Pentagon press conference that the recent strikes from Iran do not count as a violation of the ongoing ceasefire. Secretary of State Marco Rubio said Operation Epic Fury is "over" and that the U.S. has moved on to "Project Freedom," which is a defensive operation to guide stranded ships through the Strait of Hormuz.

Crude oil futures settled today's session $4.12 lower (-3.9%) at $102.16 per barrel.

With earnings continuing to deliver solid growth and yesterday's geopolitical tensions fading into the background, the market was primed for a buy-the-dip rebound after starting the week on a softer note. Today's advance reinforces the market's push into record territory, with renewed leadership from technology and semiconductor names helping drive the move higher.

U.S. Treasuries showed some Tuesday resilience, reclaiming a portion of their losses from the start of the week. The 2-year note yield settled down two basis points to 3.94%, and the 10-year note yield settled down three basis points to 4.42%.

Reviewing today's data:

• March Trade Balance -$60.3 bln (Briefing.com consensus -$60.3 bln); Prior was revised to -$57.8 bln from -$57.3 bln
  • The key takeaway from the report is that it has yet to fully capture the pickup in crude oil exports from the U.S. that has been driven by the Strait of Hormuz blockade. That pickup should be considerably higher in the next report and a boon for Q2 GDP growth forecasts.
• April S&P Global U.S. Services PMI - Final 51.0; Prior 51.3
• April ISM Non-Manufacturing Index 53.6% (Briefing.com consensus 53.9%); Prior 54.0%
  • The key takeaway from the report is that there was no real change in the key trends for the services sector, which include a modest expansion, contracting employment, and increasing prices.
• March JOLTs - Job Openings 6.886 mln; Prior was revised to 6.922 mln from 6.882 mln
• February New Home Sales 635K; Prior was revised to 583K from 587K, March New Home Sales 682K (Briefing.com consensus 654K); Prior 635K
  • The key takeaway from the report is that the bulk of the increase in sales was driven by lower-priced homes, which drove down average selling prices, but at the same time, the median price of a new home also fell. Altogether the pricing indications reflect some improved positioning for buyers.

Wednesday:

The stock market had no shortage of catalysts in today's session, with earnings growth, falling oil prices, and a series of AI-related announcements and partnerships highlighting robust demand, pushing the S&P 500 (+1.5%) and Nasdaq Composite (+2.0%) further into record territory. Strength was broad, and the DJIA (+1.2%) finished with a similar gain, reclaiming the 50,000 mark on an intraday basis.

Semiconductor stocks once again provided solid leadership, with the PHLX Semiconductor Index finishing 4.5% higher and the broader information technology sector (+2.6%) ranking as one of the best-performing S&P 500 sectors. Advanced Micro Devices (AMD 421.47, +66.21, +18.64%) posted a standout Q1 earnings report, triggering a wave of brokerage upgrades and sending peers such as Arm Holdings plc (ARM 237.30, +28.46, +13.63%) and Intel (INTC 113.01, +4.86, +4.49%) higher as well.

Super Micro Computer (SMCI 34.65, +6.82, +24.51%) also posted a double-digit gain after earnings, while Corning (GLW 181.54, +19.44, +11.99%) surged higher after announcing a long-term partnership with NVIDIA (NVDA 207.66, +11.16, +5.68%) to strengthen U.S. manufacturing for AI infrastructure.

Meanwhile, the iShares GS Software ETF finished 0.6% lower as software names lagged amid the enthusiasm for semiconductor stocks.

While strength in the top-weighted technology sector certainly contributed to the index-level advance, participation was broad-based, with nine S&P 500 sectors finishing higher and several notable gains in the mix.

The industrials sector (+2.6%) tied for today's widest gain, with Uber (UBER 79.08, +6.14, +8.41%) leading the advance after a stellar earnings report, while home improvement and airline names were buoyed by the retreat in oil prices.

Crude oil futures settled today's session $6.94 lower (-6.8%) at $95.22 per barrel amid optimism that followed President Trump's decision to suspend U.S. naval escorts through the Strait of Hormuz due to progress in negotiations that could result in a deal soon. Oil reclaimed some of its earlier losses as Iranian officials claimed Washington's negotiation demands are unrealistic, but President Trump told Fox News that he is "cautiously optimistic" a deal will be struck.

Unsurprisingly, the energy sector (-4.1%) moved sharply lower, but strength across cruise lines and homebuilders supported gains in the consumer discretionary sector (+1.4%).

Elsewhere, Walt Disney's (DIS 107.99, +7.51, +7.47%) first earnings release under new CEO Josh D'Amaro led strength in the communication services sector (+2.1%), while Intl Flavors (IFF 82.99, +12.22, +17.27%) logged a monster post-earnings gain to lead the materials sector (+1.9%).

Aside from the energy sector (-4.1%), only the defensive utilities sector (-1.4%) finished lower. Outside of the S&P 500, the Russell 2000 (+1.4%) and S&P Mid Cap 400 (+1.8%) notched gains comparable to the major averages, reflecting the market's broad risk-on tone today.

Today's action underscored the strength of the ongoing earnings cycle and continued AI-driven leadership, with broad participation reinforcing the durability of the rally. With momentum remaining firmly positive and buyers in control, the major indices continue to press deeper into record-high territory.

Reviewing today's data:

• Weekly MBA Mortgage Applications Index -4.4%; Prior -1.6%
• April ADP Employment Change 109K (Briefing.com consensus 79K); Prior was revised to 61K from 62K

Thursday:

The stock market pulled back from this morning's record-highs as oil prices bounced off their earlier lows, with broad weakness sending the S&P 500 (-0.4%), Nasdaq Composite (-0.1%), and DJIA (-0.6%) lower.

The S&P 500 and Nasdaq Composite did manage to capture fresh all-time highs, as a strong showing from software stocks and resilience across mega-cap names initially pushed the indices higher despite relative weakness in the broader market.

The information technology sector (+0.1%) managed a slightly higher finish, but gave up most of its gain that exceeded 1.0% earlier in the session. Software stocks still posted impressive gains, buoyed by several monster rallies across the latest batch of names to report earnings.

Datadog (DDOG 188.73, +45.02, +31.33%) and Fortinet (FTNT 107.97, +18.02, +20.03%) were the best-performing S&P 500 components, contributing to the iShares GS Software ETF's (+3.6%) solid gain. Meanwhile, semiconductor stocks faced some profit-taking after yesterday's rally, sending the PHLX Semiconductor Index 2.7% lower.

NVIDIA (NVDA 211.38, +3.55, +1.71%), however, managed a higher finish, which, in conjunction with Microsoft's (MSFT 420.92, +6.96, +1.68%) gain, helped the sector avoid a loss for the day.

Relative strength across other "magnificent seven" names kept the communication services sector (+0.1%) in positive territory and kept losses modest in the consumer discretionary sector (-0.2%). However, those sectors gave up most of their earlier gains following the intraday bounce in oil prices.

Crude oil traded firmly lower for much of the morning amid lingering optimism that the U.S. and Iran could soon strike a peace deal. Oil bounced off its early lows just before midday, further pressuring the broader market and eroding gains across the technology sector. Crude oil futures ultimately settled today's session $0.33 lower (-0.4%) at $94.89 per barrel.

The U.S. is still awaiting Iran's response to an updated peace proposal, though a senior Iranian official said Iran will not allow the U.S. to reopen the Strait of Hormuz with "an unrealistic plan", according to The Wall Street Journal.

Even with the intraday bounce in oil prices, the energy sector (-1.8%) finished as one of the worst-performing S&P 500 sectors.

The materials (-1.8%) and industrials (-1.6%) sectors posted similar losses. Profit-taking in Caterpillar (CAT 895.26, -31.38, -3.39%) and weakness across electrical product names weighed on industrials, while DuPont (DD 48.37, -1.70, -3.40%), Intl Flavors (IFF 78.26, -4.67, -5.63%), and other recent post-earnings winners pressured materials.

Meanwhile, the latest batch of earnings reports outside of the software space lacked the broader market impact seen earlier this week. McDonald's (MCD 283.66, -0.44, -0.15%), Arm Holdings plc (ARM 213.33, -23.97, -10.10%), and DoorDash (DASH 171.35, +3.38, +2.01%) were among the more notable names to report, though their results did little to alter the overall tone of the session.

Outside of the S&P 500, the Russell 2000 (-1.6%) and S&P Mid Cap 400 (-1.2%) finished with notably steeper losses than the major averages, reflecting the softer tone across the broader market.

Despite today's pullback, the losses remained relatively modest in the context of the market's recent run to record highs. Software stocks provided a notable area of strength following another solid round of earnings reports, though the intraday rebound in oil prices and profit-taking across cyclical areas of the market weighed on broader participation throughout the afternoon.

U.S. Treasuries tried to extend their midweek rally, but some early resistance invited an intraday pullback from two days of gains. The 2-year note yield settled up five basis points to 3.92%, and the 10-year note yield settled up four basis points to 4.39%.

Reviewing today's data:

• Q1 Productivity-Prel 0.8% (Briefing.com consensus 1.8%); Prior was revised to 1.6% from 1.8%, Q1 Unit Labor Costs-Prel 2.3% (Briefing.com consensus 2.7%); Prior was revised to 4.6% from 4.4%
  • The key takeaway from the report is that, while productivity undershot expectations, unit labor costs decelerated in a move that should placate inflation hawks at the Fed. That won't change the prevailing belief that the Fed isn't going to be cutting rates soon, but it will temper some of the budding fears about entertaining the idea of a rate hike.
• Weekly Initial Claims 200K (Briefing.com consensus 205K); Prior was revised to 190K from 189K, Weekly Continuing Claims 1.766 mln; Prior was revised to 1.776 mln from 1.785 mln
  • The key takeaway from the report is its quiet disposition in the sense that it isn't showing wide swings in either initial claims or continuing claims, which suggests some welcome steadiness in the labor market.
• February Construction Spending -0.2% (Briefing.com consensus 0.2%); Prior was revised to -1.9% from -0.3%, March Construction Spending 0.6% (Briefing.com consensus 0.4%); Prior 0.2%
  • The key takeaway from the report is that the strength in March was concentrated in the residential sector and particularly in new single-family construction.
• Consumer credit increased by $24.9 billion in March (Briefing.com consensus: $12.5 billion), the largest increase in a year, following a downwardly revised $8.9 billion increase (from $9.5 billion) in February.
  
  • The key takeaway from the report is the recognition that consumer credit saw its largest expansion in a year, driven by both revolving and nonrevolving credit. The former will stir some concerns about consumers perhaps needing to use credit more in the face of higher energy prices to pay for basic needs.

Friday:

The major averages ended a record-setting week on a mostly higher note, with the S&P 500 (+0.8%) and Nasdaq Composite (+1.7%) capturing fresh record intraday and closing highs amid solid tech leadership. Strength in the broader market was mixed and kept the DJIA on its flatline.

The PHLX Semiconductor Index spent the entire session well above its flatline as investors bought into yesterday's dip across its components. Memory names Micron (MU 746.79, +100.16, +15.49%) and Sandisk (SNDK 1562.34, +222.38, +16.60%) rocketed to fresh all-time highs, while Advanced Micro Devices (AMD 455.19, +46.73, +11.44%) and Intel (INTC 124.90, +15.28, +13.93%) captured similar gains.

Elsewhere in the information technology sector, Akamai Tech (AKAM 147.71, +31.02, +26.58%) was the top-performing S&P 500 component after a mixed earnings report that featured an announcement that a leading frontier model provider (which Bloomberg later reported to be Anthropic) has committed to $1.8 billion over seven years for cloud infrastructure.

The technology sector was the only S&P 500 sector to capture a gain wider than 0.5%, as the broader market had a relatively muted session amid the semiconductor rally.

There was some lingering strength across other mega-cap tech names, particularly Tesla (TSLA 428.29, +16.50, +4.01%), that helped the consumer discretionary (+0.5%) sector trade higher and the communication services sector finish flat despite broad weakness in its components.

The Vanguard Mega Cap Growth ETF (+1.2%) notched a nice gain, which contributed to the outperformance of the market-weighted S&P 500 (+0.8%) relative to the S&P 500 Equal Weighted Index (+0.3%).

Meanwhile, the defensive health care (-0.9%) and utilities (-0.9%) sectors finished with the widest losses amid the outperformance in tech stocks.

The consumer staples sector (+0.1%) avoided a loss, due in part to Monster Beverage's (MNST 86.31, +10.34, +13.61%) post-earnings rally.

On the geopolitical front, the market showed a muted reaction to the U.S. and Iran exchanging fire in the Strait of Hormuz as the U.S. awaits a response from Iran on its latest peace proposal. Crude oil futures settled today's session $0.50 higher (+0.5%) at $95.39 per barrel.

This morning's release of the Employment Situation report for April, which showed very strong headline nonfarm payrolls growth (115,000; Briefing.com consensus 67,000), but average hourly earnings (0.2%; Briefing.com consensus 0.3%) showed a smaller-than-expected increase, reflecting some pressure on spending power, especially when accounting for the recent inflationary shock.

Despite some mixed participation beneath the surface, the S&P 500 and Nasdaq Composite still finished firmly higher for the week as semiconductor and mega-cap technology stocks reasserted their leadership following Thursday's brief pullback. Continued AI-driven enthusiasm, solid earnings growth, and resilience across large-cap tech names helped keep the market's momentum firmly intact heading into next week.

U.S. Treasuries finished a bumpy week with modest gains across the curve, though the 2-year note just missed a higher finish for the week while longer tenors recorded slim gains for the week. The 2-year note yield settled down three basis points to 3.89% (unchanged this week), and the 10-year note yield settled down three basis points to 4.36% (-2 basis points this week).

• Russell 2000: +15.3% YTD
• Nasdaq Composite: +12.9% YTD
• S&P Mid Cap 400: +11.9% YTD
• S&P 500: +8.1% YTD
• DJIA: +3.2% YTD

Reviewing today's data:

• The April Employment Situation Report featured a 115,000 increase in nonfarm payrolls, a 4.3% unemployment rate, and a bump in the average workweek to 34.3 hours (from 34.2). This was not an indisputably strong employment report, however. Average hourly earnings growth was weaker than expected, the labor force participation rate dipped, and the U-6 unemployment rate, which accounts for unemployed and underemployed workers, increased.
  
  • The key takeaway from the report, though, may just be found in a number that looks good on the surface but could be a harbinger of lower spending activity if inflation pressures aren't controlled. We're talking about the 3.6% year-over-year increase in average hourly earnings, which leaves real earnings up just 0.3% when pitted against the March CPI report or up just 0.1% when measured against the latest PCE Price Index. That doesn't provide a lot of discretionary spending cushion without taking on debt or dipping into savings.
• The preliminary reading for the University of Michigan Consumer Sentiment Index for May dropped to 48.2 (Briefing.com consensus: 50.5) from the final reading of 49.8 for April. In the same period a year ago, the index stood at 52.2.
  
  • The key takeaway from the report is that consumers are clearly concerned about rising costs and their ability to out-earn the inflation.
• Wholesale inventories increased 1.3% in March (Briefing.com consensus 1.4%), from the revised previous increase of 0.9% (from 0.8%).