The S&P 500 index rose 4.6% last week, led by technology stocks amid better-than-expected earnings from a number of companies in the sector including Google parent Alphabet.
The index is still down 1.5% for the month and 6.1% this year on concerns about the economic impacts of the ongoing trade war between the U.S. and several countries including China. Both Chinese officials and U.S. President Donald Trump, however, softened their tone this week.
Consumer sentiment waned for the fourth straight month in April as uncertainty around tariffs dampened expectations and pushed the year-ahead inflation outlook to the highest point since 1981, final results from the University of Michigan’s Surveys of Consumers showed Friday. While the April reading of 52.2 was down from 57 in March, it was still above the consensus view for 50.5 in a poll compiled by Bloomberg.
On the earnings front, Alphabet was in the spotlight as the Google parent not only released better-than-expected Q1 results but also said its board raised its quarterly dividend by 5% and authorized the repurchase of up to another $70 billion in class A and C shares. The company’s shares rose by about 7% on the week.
The technology sector had the largest percentage increase, climbing 7.9%, followed by a 7.4% gain in consumer discretionary and a 6.4% rise in communication services. Financials and industrials rose by about 3% each.
Consumer staples was the lone sector in the red, dropping 1.4%.
This week’s earnings calendar features Pfizer (PFE), Microsoft (MSFT), Meta Platforms (META), Apple (AAPL), Amazon.com (AMZN), and Berkshire Hathaway (BRK.A, BRK.B), among others. Economic data will include Q1 gross domestic product, March personal consumption expenditures, and the closely watched April employment report and unemployment rate.
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