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Market Update: S&P 500 Continues Winning Streak Amid Mixed Performance

Key Takeaways

The S&P 500 increased by 0.1% on April 28, achieving its fifth consecutive gain as the market prepares for a week filled with crucial earnings announcements and economic reports. AbbVie reported strong quarterly results and enhanced its annual forecasts, resulting in a rise in its stock prices. Conversely, Nvidia experienced a decline due to emerging competition from Huawei in the AI chip sector.

On the first trading day of the week, major U.S. equities showed mixed results, reflecting investor sentiment ahead of earnings from prominent corporations.

Key economic indicators, particularly labor market and inflation metrics, are anticipated to influence the Federal Reserve’s future policy strategies. President Trump has advocated for additional interest rate reductions as he nears the completion of his 100-day agenda.

After spending much of the day in negative territory, the S&P 500 managed to recover in the afternoon session, securing a modest gain of less than 0.1%. The Dow Jones rose by 0.3%, while the Nasdaq experienced a minor decline of 0.1%, mainly due to weaknesses in the technology sector.

AbbVie (ABBV) emerged as a standout on the S&P 500, climbing 3.4%. In its recent quarterly earnings report, the company surpassed expectations with impressive sales and profits, driven largely by strong performance from its skin treatment Skyrizi and the rheumatoid arthritis medication Rinvoq. AbbVie also increased its full-year profit outlook but flagged potential challenges from tariffs affecting the pharmaceutical industry.

Despite a prior decline influenced by disappointing quarterly results, Gilead Sciences (GILD) saw its shares rise by 3.1% on Monday. While sales from its COVID-19 and cancer treatments dipped, the company benefitted from higher demand and pricing for its HIV treatments, along with year-over-year sales growth in its liver disease segment.

Weyerhaeuser (WY) shares grew by 3.1% following their earnings announcement, which surpassed sales expectations, although profits aligned with forecasts. Nevertheless, both metrics were down relative to the previous year, attributed to a decrease in export volumes to China.

Erie Indemnity (ERIE) faced the largest drop among S&P 500 stocks, falling 4.0%. The insurance firm exceeded revenue expectations for the first quarter but reported earnings per share below forecasts. Increased expenses related to customer service and IT investments adversely impacted the company’s earnings.

Colgate-Palmolive (CL) saw its shares decline by 3.1% despite a better-than-anticipated quarterly performance, including sales and profit. The company lowered its full-year guidance, citing potential tariff repercussions and an unpredictable global economic landscape.

Nvidia (NVDA) also experienced a downturn, with its stock slipping 2.1% amid reports that Huawei Technologies is preparing to test its own artificial intelligence chip. According to The Wall Street Journal, Huawei has reached out to various Chinese tech firms to evaluate their new chip, posing a competitive threat to Nvidia’s AI offerings.

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