The Nasdaq 100 (QQQ), the S&P 500 (SPY), and the Dow Jones Industrial Average (DIA) gained today to close out with a winning week. Interestingly, the consumer discretionary sector (XLY) was the session’s leader, while the materials sector (XLB) was the laggard. In addition, trading volume was lower than the average, which suggests that today’s optimism was cautious since investors were not rushing to buy shares.
Separately, consumer sentiment in the U.S. dipped in April, even though it came in slightly better than an earlier estimate. The University of Michigan’s Consumer Sentiment Index rose to 52.2 from the preliminary reading of 50.8 but was still down from 57.0 in March. Inflation expectations over the next year eased slightly to 6.5% but remained much higher than in March and continued to reflect concerns about recent tariff policies. Longer-term, five-year inflation expectations stayed steady at 4.4%. Consumers also reported weaker income growth expectations, which could weigh on future spending.
Meanwhile, Wall Street ended the week trying to balance trade worries and strong corporate earnings. Stocks had rallied for three straight days as better-than-expected results from tech companies, particularly semiconductor firms, lifted the broader market. Some tariff news also helped following reports that China might exempt certain U.S. imports from its new 125% tariffs. Interestingly, analysts like Deutsche Bank’s Jim Reid noted that U.S. markets are starting to stabilize after the recent wave of tariff announcements.
In earnings news, results were mostly strong across multiple sectors. In technology, companies like Alphabet (GOOG) and ServiceNow (NOW) beat expectations, while Intel (INTC) reported decent results but gave a weaker forecast. The healthcare sector was especially strong, with all reporting companies topping estimates. Industrials also saw positive surprises from Boeing (BA), even as Southwest Airlines (LUV) warned about rising costs. In consumer staples, companies like Colgate-Palmolive (CL) and PepsiCo (PEP) posted solid results despite tough global conditions. However, Tesla (TSLA) missed earnings expectations and blamed trade policy uncertainty for its weaker demand outlook.