(April 25): US stocks finished at all-time highs on Friday as a blockbuster sales forecast from Intel Corp fuelled a rally in technology stocks, while trader optimism around the prospect of US-Iran talks increased.
The Nasdaq 100 Index gained 1.9% to finish at a fresh all-time closing high, with chipmakers such as Advanced Micro Devices Inc and ARM Holdings plc contributing to gains. Meanwhile, the S&P 500 Index advanced 0.8% to also close at a record high and complete a fourth-straight weekly advance — its longest winning streak since 2024.
“Wall Street is rebounding from yesterday’s losses as investors cheer news regarding earnings, geopolitical issues and monetary policy,” said José Torres, senior economist at Interactive Brokers. “Intel’s blockbuster quarterly report, furthermore, is extending the historic rally in semiconductors and strengthening confidence that the artificial intelligence revolution has plenty of room to run.”
Intel, which gained 24%, hit a record high after delivering a revenue forecast that shattered Wall Street expectations. The upbeat outlook from Intel suggests progress is being made on a turnaround plan that positions the chipmaker to benefit from the buildout of artificial-intelligence computing.
The earnings come as the Philadelphia Stock Exchange Semiconductor Index, known as the SOX, is in the midst of a record rally. The chipmaker gauge was 4.3% higher on Friday, extending its run to 18 straight positive sessions. Investors are anticipating strong growth for the sector driven by demand related to artificial intelligence.
The next week will be important for tech, with five of the so-called Magnificent Seven — Amazon.com Inc, Alphabet Inc, Meta Platforms Inc, Microsoft Corp and Apple Inc — reporting earnings.
See also: US stocks decline as Iran jitters spur rally in oil
These will help confirm “whether or not the sector’s share price gains in recent weeks are justified”, said Kerux Financial’s David Laut. “The big tech stock correction that started prior to the Iran war has just about run its course, and valuations are back to elevated levels. The outlook for big tech stocks depends purely on earnings.”
Talks
Outside of the tech euphoria, traders watched for updates on the US and Iran. President Donald Trump will send special envoy Steve Witkoff and the president’s son-in-law Jared Kushner to Pakistan with the intention of meeting Iranian officials. However, Tehran sounded a more pessimistic tone on the prospects for talks to end the conflict.
See also: US stocks advance as earnings help distract from US-Iran impasse
Earlier, Pakistan said a second round of US-Iran talks was expected, without saying when the negotiations would take place. Also, an official familiar with the matter said Iran’s foreign minister was expected in Islamabad on Friday night for a possible second round of peace talks.
In single-stock moves, MaxLinear Inc shares surged 76% after the semiconductor company’s first-quarter results and second-quarter revenue forecast were better than expected. Procter & Gamble Co advanced as the maker of Tide laundry detergent delivered stronger-than-expected results for its latest quarter.
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