Markets

Markets closed a record-breaking week driven by strong earnings and rising oil prices. The S&P 500 and Nasdaq hit new highs, with April being their best month since 2020. Despite geopolitical tensions, equities showed resilience. Tech giants like Microsoft, Amazon, and Alphabet reported mixed results, with Alphabet leading gains driven by AI investments. A strong economic foundation, supported by Fed comments, Visa, Mastercard, and a stable jobs report, underpins market optimism.

U.S. AI stocks slid again as investors weighed AI-driven earnings against margins and deal quality, with Broadcom down over 11% and Nvidia, AMD, and Oracle also lower, dragging major indices. Despite near-term softness, the AI thesis remains intact for many, with potential for sustained earnings if hyperscaler demand holds. The week saw a Dow rise on financials while tech lagged, fueling questions about AI-cycle profitability amid higher costs. Other highlights: China’s decelerating growth, Berkshire’s leadership changes, Jimmy Lai guilty, and copper prices rally on supply and electrification demand.