Stocks Cap Best Month Since 2020 as Strong Growth Fuels Earnings Optimism – US Market Wrap

Signs of resilience in the US economy boosted confidence in the outlook for corporate earnings, helping drive stocks to their strongest monthly performance since late 2020.

Equities reached fresh highs, with the S&P 500 extending its April rally to 10% after data showed US growth accelerated, supported by an AI-led rise in business investment. Small-cap stocks, which are more closely tied to domestic economic momentum, climbed 2.2%. Lower oil prices also helped sentiment and supported bonds, while the yen strengthened on reports of Japanese intervention. In after-hours trading, Apple reported solid sales.

Artificial intelligence remained a key driver of the economy in the first quarter, helping offset pressure from war-related inflation. Consumers also continued to spend, reinforcing optimism around corporate earnings.

A busy week of earnings offered a clearer view of how major tech companies are performing in AI. Alphabet’s Google showed stronger evidence of returns from its investment, while Meta appeared to be lagging behind.