SUPERNEWS

Macro

Tech Stocks Surge, "Magnificent 7" Add $400B, Energy Dips

Tech stocks surge on strong earnings, pushing S&P 500 and Nasdaq 100 to best weekly performance since late October 2023.

By Bill Bullington

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4/26, 14:28 EDT
S&P 500
iShares 20+ Year Treasury Bond ETF
iShares 7-10 Year Treasury Bond ETF
Amazon.com, Inc.
Chevron Corporation
Alphabet Inc.
Intel Corporation
Microsoft Corporation
NVIDIA Corporation
Exxon Mobil Corporation
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Key Takeaway

  • Tech stocks, led by Alphabet's 10% surge on strong earnings, drive S&P 500 and Nasdaq gains; "Magnificent Seven" add $400 billion in market cap.
  • Despite high PCE inflation data, market focus shifts to corporate earnings optimism, with significant moves in Microsoft, Amazon, and Nvidia.
  • Energy giants Exxon Mobil and Chevron see declines amidst a broader market rally influenced by tech sector performance.

Earnings Propel Market Surge

The U.S. stock market experienced a notable uplift, driven primarily by strong earnings reports from leading tech companies. Alphabet Inc. led the charge with a 10% surge after surpassing both earnings and revenue estimates for the last quarter, marking its best performance day since July 2019. This positive momentum extended across the tech sector, with Microsoft Corp. and Nvidia Corp. also posting significant gains of 2.5% and 6%, respectively, on the back of better-than-expected results and rising expectations for AI spending. Conversely, Intel Corp. faced a sharp decline, dropping 10% due to a Q1 revenue miss, highlighting the mixed reactions within the tech industry to the latest earnings season.

Market Indices Respond

The S&P 500 and Nasdaq 100 indices reflected the buoyant mood in the tech sector, with the S&P 500 climbing over 1% and the Nasdaq 100 outperforming with a 1.8% increase. This rally pushed the weekly performance of these indices to their best since late October 2023, with the S&P 500 up by 2.8% and the Nasdaq 100 over 4%. The broader market also benefited from the collective gains of the Magnificent Seven, a group of leading tech stocks, which added a combined market cap of $400 billion in a single day, more than offsetting the previous day's losses.

Sector and Commodity Movements

Sector-wise, the Communication Services Select Sector SPDR Fund saw a significant uptick, buoyed by Alphabet's impressive performance. However, the energy sector faced downward pressure, with Exxon Mobil and Chevron Corp. experiencing declines after posting disappointing earnings. In the commodities market, both gold and oil held steady, with gold at $2,300 per ounce and oil at $83 a barrel, indicating a market that has already priced in the rising inflation narrative over recent weeks.