Stock Market Impact: US equities rose on Friday; S&P 500 +0.7% to 7,495.5, Nasdaq +0.6% to 26,449.2, Dow Jones +0.9% to 50,726.7, putting the week on track for the strongest gain since December 2023. The rally was supported by falling Treasury yields and lower oil prices after a brief bond‑market sell‑off.
Listed Companies and Sectors: Nvidia posted Q1 results that comfortably beat top‑ and bottom‑line forecasts and raised its current‑quarter revenue guidance, citing strong demand for premium AI chips. Take‑Two Interactive reaffirmed a November 19 launch for Grand Theft Auto VI. Workday and Zoom delivered earnings that topped expectations, with Workday’s shares up 5.8% and Zoom’s up 11%. Estée Lauder’s stock jumped 10.2% after the company and Spanish beauty group Puig terminated merger discussions. Walmart was also noted among the earnings contributors.
Investment Flows: The easing of the bond‑sell‑off and dip in oil prices eased market stress, which may encourage foreign portfolio inflows, although no specific FDI/FPI data were cited.
Interest Rates, Inflation, and Liquidity: The U.S. 10‑year Treasury yield reached its highest level in over a year and the 30‑year yield hit levels not seen since 2007, reflecting heightened expectations of further rate hikes. Federal Reserve minutes from the April policy meeting showed a majority of officials now see a 25‑basis‑point hike as appropriate if energy‑driven inflation persists; a 25‑bp hike is fully priced in for 2026.
Fiscal or Monetary Policy: The Fed’s stance suggests a continued tightening cycle to combat inflationary pressures stemming from surging oil prices linked to the Iran‑War conflict.
