The Nasdaq Composite Index concluded the week on a strong note, rising by more than 1% as investors responded positively to earnings reports and potential trade developments. Alphabet, the parent company of Google, saw its shares increase following a strong earnings report that exceeded expectations. The company’s revenue grew by 12% year-over-year, driven by robust performance in its search and advertising divisions.
Alphabet’s earnings report highlighted the resilience of its core businesses, despite increasing competition from artificial intelligence. The company’s AI tool, AI Overviews, has attracted 1.5 billion monthly users, demonstrating its ability to integrate AI into its services effectively. This growth has reinforced investor confidence in Alphabet’s ability to navigate the evolving tech landscape.
In addition to Alphabet’s earnings, optimism about potential trade agreements also contributed to the market’s positive sentiment. President Donald Trump indicated that the U.S. is nearing a trade deal with Japan, suggesting that agreements could be finalised within the next three to four weeks. This development has eased some concerns about global trade tensions, which have been a significant factor in market volatility.
The broader market rally was evident across major indices, with the S&P 500 and Dow Jones also closing higher. The S&P 500 rose by 0.74% to 5,525.21, while the Dow Jones increased by 0.05% to 40,113.50. The Nasdaq’s gain was more pronounced, closing at 17,282.94, up by 1.26%. This strong weekly performance reflects investors’ renewed confidence in the tech sector and the potential for improved trade relations.
Overall, the combination of strong earnings from key tech companies like Alphabet and positive signals on trade negotiations has propelled the Nasdaq to a strong finish for the week. As investors look ahead, they will continue to monitor both corporate performance and geopolitical developments for signs of sustained market growth.