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It was an excellent week for the tech stocks.
The S&P 500’s tech sector index climbed 1% Friday to log a nearly 4% weekly gain after some of America’s biggest tech companies reported better-than-expected earnings. Many of these companies also maintained their AI ambitions and remained optimistic despite the economic concerns caused by the tightening of trade restrictions and shifting tariff policies.
Meta (META), a company that reported earnings on Wednesday night, showed what analysts referred to as “tangible results” in its AI efforts. The company’s stock rose almost 9% after the announcement. Microsoft (MSFT), also reporting Wednesday, gained 9% after posting strong results. The growth was driven by demand for AI and cloud computing.
Amazon (AMZN), Apple (AAPL), and other companies followed suit with earnings that surpassed Street expectations after the closing bell of Thursday. Amazon shares were little changed on Friday, and Apple dropped close to 4% following CEO Tim Cook’s warning that the iPhone maker will take a $900m hit from tariffs during the current quarter.
Roundhill Magnificent Seven ETF (+3%) was the best performing Magnificent Seven ETF. Stocks got a boost Friday after Chinese officials signaled interest in ending the trade war with the U.S., with the S&P 500 rising 1.5% to erase all of its post-“Liberation Day” losses. (Read Investopedia’s complete coverage of today’s trade here.)
The big tech earnings show isn’t yet over: Nvidia (NVDA) is the last of the Magnificent Seven companies to report their quarterly financial results this season. It is scheduled to release these results on May 28.
