The S&P 500 is eyeing its best winning streak in more than 20 years
Wall Street bounced back in a big way this week, as strong earnings from Microsoft (MSFT) and Meta Platforms (META) reignited artificial intelligence (AI) optimism and powered a rally in chip stocks like Nvidia (NVDA), helping the market brush off a third-straight monthly loss and early-week recession concerns. Trade tensions lingered with little progress on China but potential developments with India.
Meanwhile, economic data remained mixed, with a surprise GDP contraction and the lowest consumer confidence reading in nearly five years, but upbeat jobs data to close out the week. At this point on Friday, all three major benchmarks are up and on track for a second-straight weekly win, with the Dow eyeing its longest streak since 2023 and the SPX its best in over 20 years.
Big Tech Delivers, Though Tariff Jitters Linger
Microsoft and Meta Platforms surged following strong earnings reports, lifting the broader market and helping ease fears of a slowdown in artificial intelligence (AI) spending. Apple (AAPL), meanwhile, slipped despite beating fiscal second-quarter expectations, after CEO Tim Cook warned that tariffs could have an unpredictable long-term impact on the company’s products. Amazon.com stock reversed early losses after posting a top- and bottom-line beat, even as a broad second-quarter forecast -- citing tariff-related uncertainty -- kept investors cautious.
Elsewhere, Super Micro Computer (SMCI) plunged after slashing its fiscal third-quarter profit and revenue guidance, citing order delays that could push up to $1.4 billion in sales into future quarters. McDonald’s (MCD) fell after missing revenue estimates and logging its second straight quarter of declining U.S. same-store sales, citing bad weather and consumer caution. First Solar (FSLR) tumbled after missing earnings expectations and slashing its full-year guidance, blaming tariffs as a significant economic headwind.
Top Stocks to Watch in May
Based on historical data, there are several standout names worth watching as May begins. Opera (OPRA) -- one of Schaeffer's Top 2025 stock picks -- climbed for a fifth-straight session after posting strong earnings and raising its full-year forecast, while Plug Power (PLUG) drew options traders' attention after upbeat revenue guidance and a major financing deal. Applied Materials (AMAT) and Broadcom (AVGO) are worth keeping an eye on given their historically strong May performance, and IBM (IBM) is flashing a bullish signal as it pulled back from recent highs.
What to Watch in the Week Ahead
The first full week of May brings a tighter economic calendar, but market-moving events are still on tap. The Federal Reserve’s two-day meeting wraps on Wednesday, followed by remarks from Fed Chair Jerome Powell that could set the tone for interest rate expectations. Investors will also digest earnings from Advanced Micro Devices (AMD), Walt Disney (DIS), and many more. In the meantime, Schaeffer's Senior Quantitative Analyst Rocky White breaks down how to trade the old “sell in May and go away" adage, while Senior V.P. of Research Todd Salamone analyzes an emerging SPX support floor that could define the market’s next move.