“Stocks are having the best week of the year, bouncing back from the first major pullback since the strong rally that started in late October. Once again, big tech is leading the way, with the Magnificent 7 up 3.3% on the day this morning, and up 4.4% on the week,” the analysts highlighted.
Despite cautious remarks from Taiwan Semiconductor (TSM) impacting Nvidia’s (NVDA) stock earlier, reassurances from major tech firms about significant investments in AI infrastructure led to NVDA’s rebound to $873.
The return of optimism was helped by a strong print from Alphabet, which not only surpassed earnings expectations but also announced a significant share buyback and a new dividend, pushing its shares to record highs with a 10% increase today.
“It was very important for big tech earnings to come in strong, as they not only have a major weight in the indexes, they have an even bigger portion of the overall earnings,” the analysts said.
However, not all tech companies fared well, they continued.
Intel (NASDAQ:INTC) reported disappointing top-line results and lower-than-expected margins, lacking significant exposure to AI. Its stock fell by 11.2%.
In the broader market, fears of high Personal Consumption Expenditures (PCE) inflation numbers eased as both headline and core PCE for March aligned with forecasts, providing relief to the bond market.
