The S&P 500 and the Nasdaq had their best week since November

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It was a strong day for all three major U.S. stock indexes after a big selloff the day before. Google parent Alphabet crossed the $2 trillion threshold for market capitalization on Friday.

On the macroeconomic level, the Personal Consumption Expenditures index accelerated in March to 2.7%, up from 2.5% in February. The PCE price index is a closely watched inflation gauge favored by the Federal Reserve that excludes food and energy.

There seems to be less hope for significant interest rate cuts as inflation stays elevated above the Fed’s target of 2%. The central bank has hiked interest rates 11 times since 2022.

The Dow Jones Industrial Average rose 153 points, or 0.4%, to 38,239 as the day ended. By closing time, the S&P and Nasdaq had their best weeks since November, gaining 1% and 2%, respectively.

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AI powers Google to a $2 trillion market cap

Google parent Alphabet crossed the $2 trillion threshold for market capitalization on Friday, thanks to a stock surge powered partly by its work with generative artificial intelligence.

The tech giant’s stock was one the market’s star performers on Friday, as Alphabet Class A shares and Alphabet Class C shares each hit new 52-week highs. Both stocks were up about 10% as the markets closed, making Google the top performer in the Nasdaq on Friday and one of the top stocks in the S&P 500. That pushed Google’s market cap to about $2.14 trillion on Friday afternoon.

Microsoft stock rises on AI growth

Shares of Microsoft rose on Friday after the company reported fiscal third-quarter earnings that beat analysts’ estimates. The tech giant reported earnings per share of $2.94, compared to an expected $2.82 per share. The company expects fourth-quarter revenue to range between $63.5 billion and $64.5 billion.

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The company highlighted the growth of its cloud computing business and its efforts to bring AI technology to clients. Microsoft said AI services contributed 7 percentage points to Azure and other cloud services’ revenue growth, up from 6 percentage points in the second quarter.

Microsoft stock was up about 2% by the end of the day.

Intel stock falls on revenue outlook

Intel reported first-quarter earnings results on Thursday after the closing bell, exceeding analysts’ expectations. But the company’s second-quarter outlook fell below Wall Street’s estimates, causing the stock to decline.

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Intel projected its second-quarter revenue would be between $12.5 billion and $13.5 billion, falling short of analysts’ expectations of $13.63 billion.

Intel stock was down over 9% by the end of the day.

AI stocks get back in action

AI stocks were also rising on Friday. Nvidia and Super Micro Computer were up more than 6% and 8.5%, respectively by closing time.

That followed the news that OpenAI’s Sam Altman and Nvidia’s Jensen Huang have been selected to serve on a new federal AI safety board, which will advise the Department of Homeland Security (DHS) on protecting the economy, healthcare, and other industries from threats posed by AI.

Trump Media stock pops

Shares of Trump Media, the company behind former president Donald Trump’s Truth Social, rose over 7.5% by closing time. The company went public on the Nasdaq under the ticker DJT on March 26, after completing its merger with Digital World Acquisition Corp., a special purpose acquisition company, or SPAC. Since then, the company has been on a rollercoaster ride.

Britney Nguyen, Rocio Fabbro, and Laura Bratton contributed to this article



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