Wall Street Closes Higher on Tech Rally, Posts Weekly Gains
On the downside, Intel sank 7% after issuing weak forward guidance, which overshadowed stronger-than-expected earnings.
Quick overview
- Wall Street's main indexes closed higher, driven by a rally in major tech stocks and easing U.S.-China tensions.
- The Dow Jones rose 0.05%, the S&P 500 increased by 0.74%, and the Nasdaq climbed 1.26%, with strong performances from top tech companies.
- Nvidia led the tech sector's gains, jumping 4.3%, while Alphabet reported a 28% increase in Google Cloud revenue.
- Despite some companies like Intel and T-Mobile facing challenges, overall market sentiment remained optimistic due to strong earnings in the tech sector.
Driven by a rally in major tech stocks, Wall Street’s main indexes closed higher on Friday, with traders encouraged by signs of easing tensions between the U.S. and China.
All three major indexes posted gains to end the session. The Dow Jones Industrial Average, which tracks 30 of the largest U.S. companies, edged up 0.05% to 40,113.50. The broader S&P 500 rose 0.74% to 5,525.21, while the tech-heavy Nasdaq Composite climbed 1.26% to 17,382.94.
The S&P 500—and especially the Nasdaq—were lifted by strong performances from the so-called “Magnificent Seven,” the top market-cap tech companies linked to artificial intelligence. Nvidia led the charge, jumping 4.3%.
Although Beijing denied progress in trade talks—as claimed by U.S. President Donald Trump—it did announce exemptions on some U.S. imports from its steep 125% tariffs. Despite the contradictory signals, markets interpreted the news as a sign of cooling tensions.
Investors also kept a close eye on the ongoing Q1 earnings season, now in full swing. So far, 179 S&P 500 companies have reported, with 73% beating expectations, according to LSEG.
Among the highlights was Alphabet (+1.68%), Google’s parent company, which posted a 28% jump in Google Cloud revenue and reported that its investments in AI are beginning to pay off.
With these gains, all three indexes wrapped up a strong week:
- Dow Jones: +2.48% this week (still down 5.71% YTD)
- S&P 500: +4.59% (down 6.06% in 2025)
- Nasdaq: +6.73% (still down 9.98% YTD)
Notable Movers
Strong earnings renewed optimism around AI, boosting the broader tech sector. NVIDIA (+4%) and Meta Platforms (+2.7%) both extended their bullish momentum.
On the downside, Intel sank 7% after issuing weak forward guidance, which overshadowed stronger-than-expected earnings. The struggling chipmaker also raised concerns over macroeconomic headwinds stemming from the ongoing trade dispute.
T-Mobile US tumbled 11.5% after reporting fewer-than-expected wireless subscriber additions in Q1, as increased competition and aggressive promotions weighed on growth in a saturated U.S. market.
Colgate-Palmolive rose 1.4% despite slashing its full-year forecast for organic sales. The consumer goods giant cited pressure from U.S. tariffs but still delivered better-than-expected Q1 earnings.
Spotify shares rose 2.3% even after reports—via the Financial Times—that the streaming giant plans to raise subscription prices in several countries across Europe and Latin America.
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