economy
May 4, 2026
World Stock Markets: Tech Company Results Supported Market Growth
For the fifth week in a row, stocks on the New York Stock Exchange continued to rise in value, after geopolitical tensions and central bank decisions remained in the shadow of corporate announcements from the largest technology companies.
TL;DR
- The S&P 500 index rose 0.9% to surpass 7,200 points, and the Nasdaq index, tracking tech stocks, jumped 1.1%.
- Microsoft, Amazon, Alphabet, and Meta reported strong earnings and increased their projected capital expenditures for the year to $725 billion, a 77% increase from last year.
- These four companies could incur $430 billion in depreciation costs over the next five years, potentially impacting profitability if AI services don't grow at a similar rate.
- Alphabet reported strong cloud service growth of 63%, while Meta saw revenue growth of 33% but also a significant increase in operating costs.
- Apple reported 16.5% revenue growth, driven by iPhone sales, particularly in the Chinese market, with expectations for continued growth.
- The Federal Reserve maintained interest rates but experienced significant dissent within its monetary committee, and Jerome Powell announced he would remain on the committee to defend the institution against legal challenges.
- US GDP grew at a 2.0% annualized rate in the first quarter, below expectations, with corporate investments in AI being a major contributor.
- Personal consumption, a key component of GDP, slowed to 1.6%.
- Crude oil prices jumped about 8% due to Middle East tensions, remaining above $100 per barrel.
- OPEC+ announced an increase in production by 188,000 barrels per day starting in June.
- Adidas shares rose over 8% after reporting a 14% increase in sales for the first quarter.
- Meta Platforms' shares fell about 9% after announcing a $10 billion increase in expected capital expenditures and rising operating costs.
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