New York, April 25, 2026 – The S&P 500 and Nasdaq Composite both closed at all-time highs this week, driven by a late-week rally in semiconductor stocks after Intel's optimistic outlook reignited enthusiasm for artificial intelligence. The Dow Jones Industrial Average, however, ended lower, highlighting the uneven nature of the market's advance beneath the headline records.
Investors are now bracing for a busy week ahead, with major tech earnings, first-quarter U.S. GDP data, the Federal Reserve's preferred inflation gauge, and the central bank's policy meeting scheduled for April 28-29. The upcoming events could test the sustainability of the recent rally.
On Friday, the Dow slipped 79.61 points, or 0.16%, to close at 49,230.71. In contrast, the S&P 500 rose 56.68 points, or 0.80%, to 7,165.08, while the Nasdaq surged 398.09 points, or 1.63%, to 24,836.60. For the week, the S&P 500 gained 0.55%, the Nasdaq added 1.5%, and the Dow lost 0.44%.
The week's trading was marked by volatility. Stocks jumped on Wednesday after President Donald Trump extended the Iran deadline and upbeat earnings boosted sentiment. However, optimism faded on Thursday, dragged down by software stocks. Monday had snapped the Nasdaq's 13-day winning streak.
Intel was the primary catalyst for the rally. The chipmaker reported first-quarter revenue of $13.6 billion, up 7% year-over-year, and forecast second-quarter revenue between $13.8 billion and $14.8 billion, exceeding analyst expectations. Non-GAAP earnings guidance also topped consensus, sending Intel shares to new highs. The strong results lifted the entire semiconductor sector, with AMD and Arm each surging roughly 14%, and Nvidia adding 4.32%, setting another closing high. The Philadelphia SE Semiconductor Index climbed 4.32%, extending its winning streak to 18 days.
“The AI build-out race is still on,” said Angelo Kourkafas of Edward Jones. The semiconductor sub-industry is on track for first-quarter earnings growth of 109.2%, a sharp contrast to the S&P 500 information technology sector's forecasted 48.2% growth, according to Reuters. Carson Group's Ryan Detrick noted that Intel's results are evidence that the AI surge is not slowing down, while Jed Ellerbroek of Argent Capital Management said concerns about hefty AI investments paying off for major tech companies are “fading real fast.”
Under the surface, earnings have been a key driver. As of Friday, 81.3% of S&P 500 companies that reported results beat analyst estimates, with first-quarter earnings growth tracking at 16.1%, according to LSEG data cited by Reuters.
Not all sectors participated in the rally. Software stocks took a hit on Thursday, with IBM and ServiceNow both declining. Tesla also slid after raising its capital expenditure forecast. On Friday, Procter & Gamble warned that war-related energy costs could reduce fiscal 2027 profits by $1 billion, underscoring the ongoing geopolitical risks.
Oil prices remained elevated, keeping traders on edge. U.S. crude closed at $94.40 a barrel on Friday, down for the day but up nearly 13% for the week. Brent crude settled at $105.33, rising roughly 16% over the same period. The Strait of Hormuz, a critical oil chokepoint, remained largely impassable, according to Reuters.
The Federal Reserve remains in the spotlight. Investors do not expect a rate move at next week's meeting, and market pricing reflects less than a full 25-basis-point cut by December. “A little bit of a tailwind for U.S. assets,” said Marvin Loh, senior global macro strategist at State Street, summarizing the effect of the Fed staying put.
Sid Vaidya, chief investment strategist at TD Wealth, cautioned that the market bounce occurred “without a permanent resolution in place” regarding geopolitical tensions. He warned that an unresolved conflict could increase risks for both the economy and markets if it persists.
