Weekly Market Wrap-Up: Tech and Auto Sector Earnings Propel Indices Higher

Market Overview: A Week of Green Across the Board

As we wrap up this week's market activities, it's clear that optimism has pervaded the major US indices. We saw all indices closing in the green, marking a positive end to what has been an eventful week. The tech-heavy NASDAQ 100 led the charge with a remarkable 4% increase, closely followed by the Russell 2000, which enjoyed a nearly 3% gain. Not to be left behind, both the S&P 500 and the Dow experienced upward movements as well.

Sector Performances: Tech Takes the Lead

Diving deeper into the sectors, all 11 S&P 500 sectors wrapped up the week on a high note. The technology sector, in particular, stood out with a significant 5% jump, followed by the consumer discretionary sector. This surge in the tech sector can be attributed to several factors, including robust earnings reports and investor optimism about future growth prospects.

Notable Stock Movements

• General Motors (GM) emerged as an earnings winner, hitting a new 52-week high on Friday after surpassing earnings expectations earlier in the week. The auto giant closed the week up by approximately 8%.
• Tesla, despite an earnings miss, managed to rebound impressively thanks to its AI Robo Taxi commentary. The electric vehicle maker saw its stock climb 14% over the week.
• Intel faced a downturn, with shares dropping nearly 7% after it reported earnings that exceeded expectations but revealed a dip in revenue and a bleak outlook for the second quarter.
• Conversely, Alphabet soared to a fresh all-time high, surging nearly 12% for the week after its earnings report, which highlighted strong performances from both YouTube and Google Cloud.
• Snap surprised many with its earnings report, revealing an unexpected profit and a 10% increase in daily active users, sending its shares up by 30%.
• Meta Platforms, despite beating earnings expectations, saw its stock decline by almost 8% following announcements of significant AI investments.

Looking Ahead: Key Data and Earnings Reports

Next week promises to be another eventful period with several key data points and earnings reports on the horizon:

• Wednesday will bring the ADP non-farm employment report, JOLTS, and the FOMC decision.
• Friday is set to close out the week with the April jobs report.
• Earnings reports are expected from major companies, including McDonald's, Amazon, Starbucks, and AMD on Tuesday, Qualcomm on Wednesday, and Apple and Coinbase on Thursday.

This week's market action underscores the significant impact of earnings reports on stock movements and overall market sentiment. As we look forward to next week's developments, investors will be keenly watching these reports and economic data for further indications of the market's direction.

Stay tuned to the Schwab network for 24/7 updates on all things market-related, and remember, informed decisions are the key to successful investing.

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