Wall Street closed higher on Friday, capping off a robust week marked by upbeat earnings and signs of easing tensions in the long-running U.S.-China trade war. All major indexes posted gains, with the tech-heavy Nasdaq leading the way and small caps enjoying their best week since November.
The S&P 500 climbed 0.74% to 5,525.21, while the Nasdaq Composite jumped 1.26% to 17,382.94, fueled by strength in the “Magnificent Seven” group of AI-driven tech giants. The Dow Jones Industrial Average inched up a modest 0.05% to close at 40,113.50, reflecting more muted gains among blue-chip stocks.
Investors welcomed positive developments on the trade front after Beijing announced tariff exemptions on select U.S. imports, despite pushing back on recent negotiation claims from former President Trump. The move, coupled with de-escalatory remarks from Treasury Secretary Scott Bessent, helped soothe market jitters that had been heightened by weeks of tariff threats.
“We’re looking at a nice finish to what was a pretty strong week,” said Greg Bassuk, CEO of AXS Investments. “The week started with sell-off fears but quickly rebounded thanks to signs of cooling trade tensions.”
Meanwhile, first-quarter earnings season has been better than expected. About 73% of S&P 500 companies that have reported so far have beaten Wall Street estimates, according to LSEG. Analysts now project earnings growth of 9.7% year-over-year for the S&P 500, up from 8% at the start of April.
However, not all the news was positive. The University of Michigan’s consumer sentiment survey, despite being slightly revised upwards for April, showed sentiment at its lowest since July 2022. Inflation expectations also remained stubbornly high, adding to worries about the resilience of consumer spending.
Among individual stocks, Alphabet shares rose 1.7% after the Google parent reported a 28% surge in Google Cloud revenue, reinforcing investor confidence in its AI investments. Charter Communications soared 11.4% after delivering a strong quarterly report, while Intel fell 6.7% after issuing disappointing forecasts.
In sector performance, consumer discretionary and tech led the way, while materials lagged. Oilfield services giant SLB slipped 1.2% after missing profit estimates and warning of economic headwinds ahead.
Market breadth was positive, with advancers outpacing decliners on both the NYSE and Nasdaq. Still, trading volume remained lighter than usual, with 14.3 billion shares exchanging hands compared to the 19.13 billion daily average over the past 20 sessions.
As Wall Street heads into the new week, investors remain cautiously optimistic, keeping an eye on economic data, further earnings reports, and the evolving global trade landscape.