Stocks are eyeing weekly wins after soft inflation data and trade optimism
Wall Street rallied this week, buoyed by renewed trade optimism, cooler inflation data, and strength in semiconductor stocks. A softer tone in both consumer and producer price readings helped ease concerns about further Federal Reserve rate hikes, lifting market sentiment. Meanwhile, bullish action in the chip sector reinforced broader gains, with tech leading a risk-on rotation that pushed major benchmarks through key technical levels.
The S&P 500 and Nasdaq reclaimed important trendlines, while the Dow trimmed its 2025 deficit amid a string of solid sessions. Positive momentum was further supported by upbeat earnings from select retailers and ongoing optimism around U.S. trade negotiations. As of Friday afternoon, Wall Street is heading for a weekly win.
Earnings Surprises and Warning Signs
Investors had plenty to parse this week as earnings season delivered a mix of upbeat results and cautious outlooks. Under Armour (UAA) impressed with a surprise revenue beat, helping the athletic apparel stock rebound from recent lows. Walmart (WMT), on the other hand, slipped despite topping earnings expectations, as executives warned tariffs could weigh on consumer behavior and margins in the quarters ahead. Hertz Global (HTZ) sank after a dismal first-quarter report highlighted ongoing weakness in its electric vehicle strategy.
Elsewhere, guidance downgrades rattled investors. American Eagle (AEO) plunged after pulling its full-year outlook, citing inventory missteps and rising costs. Meanwhile, UnitedHealth (UNH) continued to struggle, as regulatory overhang and sector pressure showed no signs of easing.
C-Suite Shakeups and Mega Deals
The headlines were heavy with leadership changes and major deals this week. Novo Nordisk (NVO) slid after announcing a major C-suite shakeup, with longtime CFO Karsten Munk Knudsen stepping down amid restructuring at the top. Meanwhile, Charter Communications (CHTR) rallied after news of a massive $53 billion merger with Altice USA (ATUS), a deal that could reshape the U.S. broadband and wireless landscape.
Elsewhere, Foot Locker (FL) surged following a $1.1 billion buyout from private equity firm Sycamore Partners, while Axcelis Technologies (ACLS) jumped after unveiling a $300 million share buyback and a landmark semiconductor deal with Saudi Arabia aimed at expanding its global footprint.
What to Watch in the Week Ahead
Next week brings a lighter economic calendar, though purchasing managers' index (PMI) data and commentary from Fed officials could still sway markets. On the earnings front, updates from major retail and tech names will help gauge the state of the consumer and enterprise spending. Meanwhile, Schaeffer's Senior V.P. of Research Todd Salamone breaks down key SPX levels for options expiration week, and Senior Quantitative Analyst Rocky White scans individual SPX stocks for a bullish outside-day setup.