Boosted by Alphabet's (GOOGL, Financial) better-than-expected earnings report and a significant $70 billion stock buyback plan, tech stocks led a market-wide rally. The NASDAQ increased by 1.26%, while the S&P 500 rose 0.74% for the fourth consecutive positive session, marking its longest winning streak since January. The Dow Jones closed nearly flat as investors monitored sector rotations and capital allocations.
For the week, the S&P 500 climbed over 4%, NASDAQ gained more than 6%, and the Dow rose over 2%. The rise was attributed to positive interpretations of trade talks by Trump and indications from Federal Reserve officials about potential interest rate cuts. Despite ongoing U.S.-China trade tensions, tech stocks showed resilience.
In individual stock performances, major tech companies saw gains, with Alphabet rising 1.47%, Microsoft (MSFT) up 1.17%, and Amazon (AMZN) increasing by 1.31%. Semiconductor stocks also generally closed higher, including Nvidia (NVDA), which surged 4.30%.
Despite uncertainties, experts predict that the upcoming earnings reports of major cloud companies like Microsoft and Amazon will significantly influence market trends.
