Wall Street extended its upward momentum this week, with the Dow Jones Industrial Average reaching a new all-time high while the S&P 500, Nasdaq, and Russell 2000 also posted strong gains near record territory. Oil prices swung sharply amid renewed optimism surrounding a potential Iran agreement, though prices were little changed overall for the week. Treasury yields retreated after surging to a 52-week peak on Tuesday.
Among the market’s major stories, NVIDIA delivered another blockbuster earnings report but still saw its shares edge lower, while Walmart tumbled after warning of a challenging second quarter. Meanwhile, SpaceX officially filed paperwork for its long-awaited IPO, and OpenAI is reportedly preparing a confidential public offering filing as well.
Dow Reaches New Peak
The Dow Jones Industrial Average climbed to a record close despite weakness in Nvidia and a sharp sell-off in Walmart shares. IBM surged after the Trump administration announced new investments tied to quantum computing initiatives.
Broader markets also strengthened, with the S&P 500 and Nasdaq posting solid advances while the small-cap Russell 2000 outperformed. Oil futures remained volatile as traders weighed the possibility of progress in negotiations involving Iran, though concrete developments remained limited.
In the bond market, the benchmark 10-year Treasury yield eased after touching its highest level in a year earlier in the week, while the 30-year yield recently climbed to levels not seen in almost two decades.
Nvidia Delivers Huge Results but Stock Slips
Nvidia once again surpassed Wall Street expectations for both quarterly results and forward guidance, yet investors responded cautiously and shares dipped after earnings.
The AI chip giant reported a 130% jump in earnings from a year earlier, while revenue surged 85% to $81.6 billion. This marked the company’s fourth consecutive quarter of accelerating profit growth and the third straight quarter of faster revenue expansion.
For the current quarter, Nvidia forecast revenue of roughly $91 billion, implying growth of about 95%. The company also significantly boosted shareholder returns by raising its quarterly dividend from 1 cent to 25 cents per share and expanding its stock repurchase authorization by $80 billion to a total of $118.5 billion.
CEO Jensen Huang said demand for the company’s AI chips has become “parabolic.” Nvidia also remains on schedule to launch its next-generation AI platform, Vera Rubin, in the third quarter.
SpaceX Moves Closer to Historic IPO
SpaceX publicly released its IPO prospectus, revealing detailed financial information for the first time. The aerospace company generated $18.67 billion in revenue last year, representing annual growth of 33%.
Its Starlink satellite internet business accounted for more than $11 billion of total sales, with revenue rising nearly 50% as subscriber numbers expanded rapidly despite declining average revenue per user.
Although SpaceX posted a net loss of $2.59 billion, adjusted EBITDA reached $6.58 billion. The company plans to list on the Nasdaq under the ticker SPCX, and analysts expect the offering could become the largest IPO ever, potentially raising around $80 billion.
Separately, SpaceX postponed another test flight of its newest Starship rocket model, with the next attempt scheduled for Friday evening.
Walmart and Target Warn About Consumer Pressure
Retail giants Walmart and Target both cautioned that consumers may face increasing financial strain in the second quarter due to elevated gasoline prices.
Walmart reported an 8% rise in first-quarter earnings per share while revenue climbed more than 7%, supported by strong e-commerce activity, advertising revenue, and membership growth. However, management issued weaker-than-expected guidance for Q2 while maintaining full-year projections that still fell below analyst expectations. Shares dropped sharply following the report.
Target also exceeded first-quarter estimates, posting a 32% increase in adjusted earnings and a 6.7% revenue gain. Comparable sales rose 5.6%, ending a streak of four consecutive quarterly declines. The company said tax refunds helped support consumer spending, though executives expect that boost to fade later in the year.
While Target raised its full-year sales outlook and projected earnings toward the upper end of previous guidance, executives acknowledged tougher year-over-year comparisons ahead in Q2.
Google Expands AI Push With Lower Pricing
Alphabet used its Google I/O conference to intensify competition in artificial intelligence. The company introduced an upgraded Gemini 3.5 model alongside a new AI system called Omni, initially focused on video generation.
To attract developers and enterprise users, Google announced lower pricing and enhanced coding tools. It also launched a new $100-per-month subscription tier for its AI Ultra offering while reducing the price of the premium version from $250 to $200 monthly.
Google additionally unveiled Gemini Spark, an autonomous AI assistant designed to move beyond traditional chatbot functionality. The Gemini app now reportedly serves 900 million monthly users, up from 750 million at the end of 2025.
OpenAI’s ChatGPT platform, by comparison, reportedly exceeds 900 million weekly active users, including approximately 50 million paying subscribers.
Google also introduced Android 17 with integrated “Gemini Intelligence” features and showcased its first Android XR-powered smart glasses developed in partnership with Samsung.
TJX and Ross Stores Post Strong Results
Discount retailers TJX Companies and Ross Stores both exceeded earnings expectations for the first quarter and delivered encouraging outlooks for Q2.
TJX, which owns brands including Marshalls, TJ Maxx, and HomeGoods, posted a 29% increase in earnings per share while revenue rose 9% to $14.32 billion. Comparable-store sales advanced 6%. Although management issued somewhat cautious guidance, the company is known for conservative forecasts.
Ross Stores reported even stronger momentum, with earnings climbing 37% and revenue increasing 21% to $6.01 billion. The retailer also provided upbeat guidance for upcoming quarters. Both stocks moved back above their 50-day moving averages.
Home Depot and Lowe’s Navigate Difficult Conditions
Home Depot and Lowe's both maintained their full-year outlooks after surpassing quarterly earnings expectations, helped by demand from professional contractors.
However, executives at both companies highlighted a challenging economic backdrop, increased consumer caution, and housing affordability pressures. Home Depot noted that even higher-income shoppers are delaying larger renovation projects due to rising fuel costs.
Higher Treasury yields, which recently approached 20-year highs, have pushed mortgage rates upward and weighed on both home sales and home improvement spending.
Home Depot reported a 4% decline in earnings alongside nearly 5% revenue growth, while Lowe’s posted a 4% increase in EPS and a 10% rise in sales. Both companies narrowly beat expectations despite softer-than-forecast comparable-store sales.
Deere Results Leave Investors Unimpressed
Deere & Company reaffirmed its outlook after beating earnings estimates, though much of the upside was tied to tariff-related refunds.
The machinery maker recorded a slight 1% decline in earnings despite a 5% increase in revenue, marking its tenth consecutive quarter of shrinking profits. Analysts still expect growth to improve later this year and into 2027.
Demand tied to construction projects helped offset ongoing weakness in Deere’s agriculture business. Like Caterpillar, Deere has increasingly benefited from infrastructure demand connected to AI data center development, particularly for excavators and power generation equipment.
Nevertheless, the company continues to face difficult conditions across global agricultural markets, and its shares dropped toward their 200-day moving average.
IBM and Quantum Stocks Rally on Government Support
The Trump administration announced plans to distribute $2 billion in funding among IBM and several quantum computing firms to accelerate domestic quantum technology development.
The investments, backed by the CHIPS Act, will also involve the Commerce Department taking stakes in the participating companies. Commerce Secretary Howard Lutnick said the initiative aims to strengthen U.S. industry, create high-paying jobs, and advance America’s quantum capabilities.
IBM is expected to receive $1 billion, while GlobalFoundries will obtain $375 million. Other beneficiaries include quantum firms such as D-Wave Quantum, Rigetti Computing, and Infleqtion.
The announcement sparked a rally in both IBM shares and the broader quantum computing sector.
Other Market Highlights
Analog Devices reported a 67% increase in adjusted earnings and revenue growth of 37% in its fiscal second quarter, though shares slipped after weaker industrial segment sales.
Keysight Technologies topped earnings estimates and issued stronger-than-expected guidance for the current quarter.
Astera Labs surged after executives projected strong AI-driven demand growth at the J.P. Morgan TMT Conference.
Eli Lilly announced promising clinical data for its obesity treatment retatrutide, with patients losing up to 30% of body weight in long-term studies.
Golar LNG posted strong earnings growth fueled by higher production and pricing, though the stock declined alongside falling energy prices.
Zoom Communications delivered better-than-expected quarterly results as enterprise demand improved.
Workday beat reduced expectations under its new CEO, sending shares sharply higher.
Reports indicate OpenAI is preparing a confidential IPO filing that could arrive as early as May 22, with the company reportedly targeting a public listing by September.
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