Wall Street advanced on Friday, notching weekly gains as investors parsed a spate of earnings and looked for signs of easing tensions in the U.S.-China trade dispute.
The S&P 500 and the Nasdaq were bolstered by gains in the "magnificent seven" group of artificial intelligence-related megacaps, while the blue-chip Dow was more muted.
The small cap Russell 2000 enjoyed its largest weekly percentage gain since November.
Beijing exempted some U.S. imports from its 125% tariffs but denied Trump's negotiation claims, on the heels of recent de-escalatory statements from Treasury Secretary Scott Bessent, in the latest sign that the world's two largest economies are dialing back their trade war tensions, which have rattled markets for weeks.
"We're looking at a nice finish to what was a pretty strong week," said Greg Bassuk, CEO at AXS Investments in New York. "The week kicked off with a strong sell sentiment but a real robust rebound followed. It's been a pretty strong week and it's largely been sparked by a sense of de-escalation of both the trade war with China."
First-quarter earnings season has hit full-stride, with 179 of the companies in the S&P 500 having reported. Of those, 73% have beaten expectations, according to LSEG.
Analysts now see aggregate S&P 500 earnings for the January to March period of 9.7% year-on-year, sunnier than the 8.0% estimate as it stood on April 1, per LSEG.
But investors are largely looking past results and parsing forward guidance, particularly lowered or pulled projections due to economic uncertainties and dampening consumer spending.
The University of Michigan released its final take on April consumer sentiment, and while the index was upwardly revised, it was still at the lowest level since July 2022 and inflation expectations remained hot.
This is a line chart that shows a consumer confidence index over the past 20 years. In the month of April, the overall index was 52.2, the view of the current economy was 59.8 and expectations for the future were 47.3.
The Dow Jones Industrial Average rose 20.10 points, or 0.05%, to 40,113.50, the S&P 500 gained 40.44 points, or 0.74%, to 5,525.21 and the Nasdaq Composite gained 216.90 points, or 1.26%, to 17,382.94.
Of the 11 major sectors in the S&P 500, consumer discretionary and tech led the gainers, while materials suffered the largest percentage loss.
Alphabet shares advanced 1.7% after the Google parent posted a 28% jump in Google Cloud revenue and assured investors that its AI investments are paying off.
Intel provided weak revenue and profit forecasts, sending the chipmaker's stock down 6.7%.
Shares of oilfield services provider SLB dipped 1.2% after the company missed first-quarter profit estimates and warned of a potential industry-wide shift due to economic uncertainty and tariff risks.
Charter Communications jumped 11.4% after the broadband and cable company beat revenue estimates and added more subscribers than expected.
Advancing issues outnumbered decliners by a 1.33-to-1 ratio on the NYSE. There were 54 new highs and 27 new lows on the NYSE.
On the Nasdaq, 2,317 stocks rose and 2,024 fell as advancing issues outnumbered decliners by a 1.14-to-1 ratio.
The S&P 500 posted 4 new 52-week highs and 6 new lows while the Nasdaq Composite recorded 32 new highs and 47 new lows.
Volume on U.S. exchanges was 14.30 billion shares, compared with the 19.13 billion average for the full session over the last 20 trading days.
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