Weekly Stock Market Overview

This week concluded with a triumphant note for the stock markets. The S&P 500 index rose by 2.9% in comparison to last week's closing, reaching a victorious streak of nine consecutive weeks. The Nasdaq Composite and Dow Jones Industrial Average also experienced significant upticks, with increases of 3.4% and 3.0%, respectively.

Several elements propelled the markets upwards:

• Improvement in trade relations, as China indicated potential openness to negotiations with the U.S.
• Strong earnings results from notable companies, with Microsoft (MSFT) surging 11.1% and Meta Platforms (META) by 9.1% since last week.
• The S&P 500 surpassing its 50-day moving average.
• Favorable economic data, like the 0.7% rise in personal spending and steady PCE Price Indexes, as well as employment growth with 177,000 new nonfarm payroll jobs and a stable unemployment rate of 4.2%.

However, not all stocks enjoyed the ascent. Apple (AAPL, Financial) declined 1.9% post-earnings, while Amazon (AMZN, Financial) only slightly rose by 0.5% compared to last Friday.

Sectors Performance and Economic Challenges

Out of the eleven sectors in the S&P 500, ten recorded gains. Particularly, technology increased by 4.0%, communication services by 4.2%, and industrials saw a 4.3% boost. Energy was the sole sector in the red, declining by 0.7%.

Despite the robust performance, economic concerns lingered. April's Consumer Confidence Index fell to 86.0 from a previous 93.9, primarily affected by the lowest Expectations Index since October 2011. Inflation expectations rose to 7.0%, the highest since November 2022.

Additional economic data included weaker initial jobless claims, a contraction in the ISM Manufacturing Index below 50%, and a concerning Q1 GDP report reflecting a 0.3% decline in real GDP alongside a 3.7% rise in the GDP Price Deflator.

Market Movement and Economic Indicators

The week also saw various market activities and data releases:

Guru Stock Picks

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• Add in IEP by 4.87%

Today's News

Apple (AAPL, Financial) is reportedly collaborating with Anthropic to develop an AI-powered platform aimed at assisting developers in coding tasks. This new software will incorporate Anthropic's Claude Sonnet large language model and is initially intended for internal use at Apple. The move follows Apple's previous attempt with Swift Assist, which faced challenges and was not released to developers. Anthropic has already partnered with Amazon (AMZN, Financial), integrating its AI models into Amazon's ecosystem.

Novo Nordisk (NVO, Financial) announced that the FDA has accepted its marketing application for an oral version of its weight loss drug, Wegovy (semaglutide). If approved, this would be the first oral GLP-1 drug indicated for weight loss. The application also seeks approval for reducing major adverse cardiovascular events in overweight or obese adults with cardiovascular disease. A decision from the FDA is expected in Q4 2025.

Abbott Laboratories (ABT, Financial) saw a 1.4% rise in its stock after a judge ruled in favor of the company in a trial concerning its baby formula. The ruling granted Abbott's request for summary judgment, affecting the multidistrict litigation related to the case. However, the court's decision does not resolve all potential claims against Abbott, particularly concerning causation experts' ability to prove a connection between the formula and health issues.

Nvidia (NVDA, Financial) is adjusting its AI chip designs to comply with U.S. export restrictions while maintaining availability for Chinese clients, including ByteDance, Alibaba (BABA, Financial), and Tencent (TCEHY). This follows the U.S. government's expansion of the list of AI chips requiring approval for sale to China. Nvidia expects to incur a $5.5 billion charge due to these changes, affecting its upcoming financial results.

Block (SQ, Financial) experienced a 20% drop in its stock after reporting disappointing Q1 2025 earnings and issuing cautious guidance. The company's earnings fell short due to weaker-than-expected Cash App Card spending, prompting a downgrade from Piper Sandler. Despite the challenges, Block remains optimistic about accelerating profit growth in the latter half of 2025.

Chevron (CVX, Financial) expressed interest in acquiring Phillips 66's (PSX, Financial) stake in their chemicals joint venture, aiming to increase its exposure to petrochemicals. This comes amid pressure from activist investor Elliott Investment Management, which values Phillips 66's stake at approximately $13 billion. Chevron's Q1 earnings narrowly beat estimates, and the company plans to slow its stock buyback pace in Q2.

Airbnb (ABNB, Financial) provided a mild forecast for the current quarter despite a slight beat on core metrics in Q1. The company expects growth in nights and experiences to moderate, with average daily rates remaining flat. Airbnb plans to invest significantly in launching new businesses in 2025, with further details to be disclosed soon.

Twilio (TWLO, Financial) received positive analyst sentiment after surpassing first-quarter expectations and raising its guidance. Despite macroeconomic uncertainties, Twilio's demand remained strong, leading to an increase in its FY25 topline revenue growth forecast. Analysts raised the price target for Twilio, although they maintained a cautious outlook.

Take-Two Interactive (TTWO, Financial) announced a delay in the release of Grand Theft Auto VI to May 2026, causing an initial drop in its stock. However, the market had anticipated the delay, leading to a recovery in share price. The delay is seen as an opportunity to enhance the game's quality and avoid negative feedback.

GuruFocus Stock Analysis

• American Airlines (AAL) Debuts New Business-Class Suites With Doors Amid Premium Cabin Shift by Faizan Farooque
• Berkshire (BRK.A) Meeting to Spotlight Buffett's Potential Tariff Comments by Faizan Farooque
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• U.S. Adds 177,000 Jobs in April, But Analysts Flag Warning Signs Beneath the Surface by Faizan Farooque
• Apple (AAPL, Financial) Hit by $900 Million Tariff Impact as Supply Chain Shifts to India by Faizan Farooque