S&P 500 and Nasdaq extend gains to finish week strong

4:12pm: Winning week

US stocks finished the week on a high note as trade tensions between the US and China eased.

The S&P 500 added 0.7% to close at 5,958 points, its fifth day of gains.

The Nasdaq added 0.5% at 19,211 points, up about 7% for the week, while the Dow Jones was up 0.8% at 42,654 points.

3:40pm: Proactive news headlines

NanoViricides (NNVC): The company is preparing a Phase II trial for its Mpox antiviral NV-387 after receiving ethics approval in the DRC, advancing its mission to tackle underserved viral diseases.

StickIt Technologies Inc. (STKT): StickIt appointed finance veteran Igor Kostioutchenko to its board, strengthening its leadership team with over 15 years of accounting and financial expertise.

NextSource Materials Inc. (NEXT): The company is ramping up its Madagascar graphite operations and pursuing downstream opportunities after completing a technical review of Phase 1.

T Stamp Inc. (IDAI): Trust Stamp forecast over $5 million in 2025 revenue from current contracted clients, with additional upside from deals not yet generating income.

3:04pm: Stocks on the move

Super Micro Computer Inc (SMCI): Shares rose after the company announced a multi-year, $20 billion partnership with DataVolt to supply GPU platforms and systems for AI data centers in Saudi Arabia and the U.S.

Virgin Galactic Holdings Inc (SPCE): Shares jumped nearly 40% following a 21% year-over-year reduction in operating expenses and a narrower quarterly net loss, signaling progress in the company’s cost-cutting efforts.

Cava (CAVA): Despite beating Q1 earnings expectations, Cava shares fell about 5% as the company reiterated a cautious full-year outlook with no changes to its sales or margin forecasts.

Applied Materials Inc (AMAT): The chip equipment maker beat earnings expectations as strong demand for advanced semiconductors offset softness in memory and China-related trade challenges.

NanoViricides (NNVC): The biotech firm is advancing toward Phase II trials for its Mpox treatment NV-387 after gaining ethics approval in the DRC, part of its broader push to address unmet antiviral needs.

Novo Nordisk (NVO): CEO Lars Fruergaard Jørgensen is stepping down after eight years, amid mounting competitive pressure and a sharp drop in the company’s stock price.

2:24pm: More data next week

Looking ahead to next week's data docket, Wells Fargo expects a 2.7% rebound in existing home sales for April, but the overall trend is expected to stay weak.

“The pace of existing home sales is likely to remain fairly tepid for the foreseeable future,” the bank noted, citing lingering economic uncertainty and cautious buyer sentiment.

For April, Wells Fargo forecasts a 2.6% decline in new home sales to 705,000 units, as buyer traffic weakens and mortgage rates climb again.

Analysts cautioned that “ongoing economic policy uncertainty, the recent rebound in mortgage rates and subdued economic growth prospects remain formidable headwinds to the new home sales outlook.”

1:26pm: Friday's headlines

Novo Nordisk (NYSE:NVO) CEO Lars Fruergaard Jørgensen is stepping down after eight years leading the Danish pharmaceutical giant, known for its blockbuster obesity and diabetes drugs Wegovy and Ozempic.

Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB) has delayed the release of its next-generation artificial intelligence model.

Nvidia Corp (NASDAQ:NVDA, ETR:NVD) is strengthening its position in China with plans to establish a new research and development (R&D) center in Shanghai, according to a report from the Financial Times.

US consumer sentiment fell sharply in early May, with the University of Michigan’s index dropping to 50.8—its lowest level since mid-2022 and well below expectations.

12:19pm: Markets turn positive

Wall Street is cruising into the end of the week with a steady beat, as all three major indexes continue to build on their recent momentum. As of midday Friday, the Dow is up 0.1%, the S&P 500 is ticking up 0.2%, and the Nasdaq is ahead by 0.1%.

It’s not a flashy day for markets, but even modest gains are enough to keep the major indexes on track for solid weekly advances. In fact, the S&P 500 and Nasdaq are on pace to extend their winning streaks, buoyed by a mix of positive news both at home and abroad.

Investor sentiment got a boost earlier in the week after the U.S. and China agreed to temporarily reduce tariffs for 90 days, a move that has helped ease trade tensions and injected a bit of optimism back into global markets.

Meanwhile, a string of encouraging economic data—including signs that inflation is cooling—has reinforced hopes that the U.S. economy remains on solid footing. That’s been particularly good news for tech stocks, which have led much of the recent rally and are helping power the Nasdaq’s strong showing this week.

With just a few hours left in the trading day, investors are watching to see if the market can close out this week on a high note. So far, all signs point to yes.

11:21am: April housing starts rise

US housing starts rose 1.6% in April to an annual rate of 1.361 million, falling short of the expected 2.7% increase, as a surge in multifamily construction offset a decline in single-family starts. However, building permits—a key indicator of future activity—fell sharply by 4.7% to a 1.412 million rate, signaling potential weakness ahead.

According to Wells Fargo, the drop in permits reflects mounting challenges for residential construction, including high mortgage rates, elevated inventory relative to sales, and growing policy uncertainty, despite continued progress on current projects.

10:35am: Consumer sentiment lowest since 2022

US consumer sentiment fell sharply in early May, with the University of Michigan’s index dropping to 50.8—its lowest level since mid-2022 and well below expectations.

The decline was broad, affecting both current conditions and future expectations, and marks a nearly 30% plunge in sentiment since the start of 2025.

Inflation fears spiked, with year-ahead expectations rising from 6.5% to 7.3%.

Tariffs were a growing concern, mentioned by nearly 75% of respondents, though most interviews occurred before a partial tariff pause was announced on May 12.

9:51am: Stocks in neutral

US markets opened Friday with a mixed tone as investors processed a flurry of economic data, corporate updates, and global developments.

The Dow Jones slipped 40 points, or 0.1%, to 42,283, while the S&P 500 ticked up 4 points to 5,921. The Nasdaq edged higher by 27.65 points, or 0.1%, to 19,140. Small caps led the way, with the Russell 2000 rising 0.6%—a modest but encouraging sign of broader market participation.

The mood was cautious but not alarmed, as traders positioned themselves ahead of a hefty $3.4 trillion in options set to expire later today.

Economic data continued to point to easing inflationary pressures, with the Producer Price Index falling 0.5% in April—the sharpest drop since 2020—while retail sales posted a tepid 0.1% gain. The weak numbers have fueled speculation that the Fed may lean more dovish in coming months, especially with Treasury yields dipping and the 10-year note hovering near 4.41%.

Meanwhile, the US dollar softened slightly, set to end the week flat after earlier optimism from a temporary US-China trade truce faded. Investors are now watching the University of Michigan’s Consumer Sentiment Index due this morning, expected to show a slight uptick but still signal consumer unease.

Elsewhere, Walmart warned of higher prices despite tariff reductions, Applied Materials missed sales expectations, and Tesla added a restaurant industry veteran to its board, keeping corporate headlines lively to end the week.

8:00am: Dow expected to lead gains

US stock futures were in the green ahead of Friday's opening bell as investors continue to rotate back into blue chips. 

Futures for the Dow Jones were up 0.4%, while those for the S&P 500 and the Nasdaq were 0.3% higher. 

The Dow led Thursday's gains with a 0.7% and the S&P 500 added 0.4%. Tech stocks took a bit of a breather, with the Nasdaq slipping back 0.2% as investors took some profits off the table after a strong run in major tech names.

"We have seen some questions emerge over the longevity of this recent run for US and China related stocks, with the Nasdaq having gained over 30% from their April lows," commented Scope Markets Joshua Mahony.

"Indeed, yesterday did see the Nasdaq lag after leading the recent resurgence, with most of the mag7 names down on the day. Those recent tech gains have been largely centred on AI-related stocks that could benefit from the emergence of Saudi Arabia as a new market for AI products and services.

"Incredibly, Nvidia has enjoyed a 57% bump in less than 6 weeks, regaining $1 trillion worth of market cap to overtake Apple to become the world’s second largest company once again."

European markets are trading higher this morning, with the London up 0.4% and the Frankfurt and Paris markets up around 0.7%.

Asian markets were flat to weaker overnight. In Japan, the Nikkei 225 closed just two points down, while Hong Kong's Hang Seng shed 0.5% and Shanghai's SSE Composite Index fell 0.4%.