Equities are adding to gains in the early going, and for a change, crude oil is trading in the same direction (higher). Gold and silver are pulling back while Treasuries and the dollar are mostly flat. Bitcoin is trading in the high $70,000s after failing to hold the $80K level last week.
Barring a painful, last-minute selloff, the S&P 500 Index (^SPX) will close out the week with its eighth consecutive weekly gain. That would be its best winning streak since December 2023. Optimism over AI spending in particular and technology stocks in general has propelled markets higher.
Strong earnings growth is also underpinning the gains. S&P profits are on track to rise 28.4% in Q1, the most since Q4 2021, according to FactSet. Even if you exclude blockbuster results from the Magnificent Seven stocks, earnings growth from the “other 493” is 17.4%. That’s also the strongest since we saw 32.3% growth in 2021 coming out of the pandemic.
S&P 500 Profit Growth: Mag 7 Vs. the “Other 493”
Source: FactSet
Speaking of earnings, Nvidia Corp. (NVDA) delivered analyst estimate “beats” on the top and bottom lines for the first quarter. It also raised its dividend, pledged to buy back as much as $80 billion in stock, and raised its Q2 sales forecast. But Nvidia stock slid 1.8% anyway on concern about increased competition – even as CEO Jensen Huang talked up the mainstream appeal of AI tech.
Finally, it seems like every day, investors get told a Middle East deal is right around the corner. Every day, nothing happens. Result: Crude oil prices aren’t surging further, but they’re not giving up their wartime gains, either.
WTI oil futures are trading around $96.50 a barrel this morning, up roughly $30 from pre-war levels. Brent crude is hovering around $103. Once again, it’ll be a weekend of headline-watching for energy traders.
