Market Update Into May 4th: Tech Takes Control

3 mins read

Markets extended their advance last week as heavyweight earnings and key macro data took center stage. Blowout reports from Microsoft and Meta ignited a sharp Thursday gap-up, powering broad strength across tech and growth names. However, the economic picture showed signs of weakness with a Q1 GDP surprise to the downside, contracting for the first time since early 2022, while consumer confidence and ADP employment numbers slipped. Still, the bears failed to gain traction, as bullish momentum carried the major indexes closer to the 200-day SMA.

Looking ahead, all eyes turn to this week’s FOMC meeting, where Jerome Powell will offer fresh commentary on the Fed’s policy stance amid mixed economic signals. Traders will also digest another round of Q1 earnings, with reports from names like $AMD and $PLTR likely to shape sentiment into mid-May. Let’s dive into the charts.

Weekly Analysis

SPY (SPDR S&P 500)

SPY closed the week in the green at $566.76 (+2.94%), breaking above a key resistance zone at its year-to-date high-volume node, a level that was initially rejected on Thursday. Notably, the ETF triggered its first bullish 8/21 EMA cross since January, adding fuel to the upside momentum. The next major hurdle lies at the 200-day moving average, a key level that could determine whether trend-following traders decide to get back in the markets.

QQQ (Invesco QQQ Trust)

Powered by strong tech earnings, QQQ ended the week on a high note at $488.83 (+3.67%). It closed right below its 200-day moving average, the same level it rejected in late March. A bullish 8/21 EMA cross at its year-to-date high-volume node adds further weight to the shift in momentum favoring the bulls. With macro headwinds like tariffs and weak growth unable to overpower strong tech earnings, traders are beginning to ask: has the bad news already been priced in?

IWM (iShares Russell 2000)

With all eyes on big tech last week, IWM quietly finished in the green at $200.48 (+3.28%). Still lagging behind its large-cap peers, the ETF sits 8% below its 200-day moving average. As it pushes toward the upper boundary of its March trading range, bulls face a key challenge: reclaiming this pivotal high-volume node and flipping resistance into support.

Earnings

Notable Results

AAPL (Apple)

EPS: $1.65 vs $1.63 est
REV: $95.36B vs $94.53B est

MSFT (Microsoft)

EPS: $3.46 vs $3.22 est
REV: $70.07B vs $68.43B est

AMZN (Amazon.com)

EPS: $1.59 vs $1.36 est
REV: $155.70B vs $155.04B est

META (Meta Platforms)

EPS: $6.43 vs $5.21 est
REV: $42.31B vs $41.39B est

HOOD (Robinhood)

EPS: $0.37 vs $0.32 est
REV: $927.00M vs $922.53M est

MA (Mastercard)

EPS: $3.73 vs $3.57 est
REV: $7.25B vs $7.12B est

V (Visa)

EPS: $2.76 vs $2.68 est
REV: $9.59B vs $9.55B est

LLY (Eli Lilly and Company)

EPS: $3.34 vs $3.02 est
REV: $12.73B vs $12.67B est

KO (Coca-Cola)

EPS: $0.73 vs $0.72 est
REV: $11.10B vs $11.14B est

MCD (McDonald’s)

EPS: $2.67 vs $2.66 est
REV: $5.96B vs $6.09B est

SPOT (Spotify)

EPS: $1.13 vs $2.21 est
REV: $4.41B vs $4.21B est

SOFI (SoFi Technologies)

EPS: $0.06 vs $0.04 est
REV: $770.72M vs $739.05M est

CAT (Caterpillar)

EPS: $4.25 vs $4.35 est
REV: $14.25B vs $14.66B est

XOM (Exxon Mobil)

EPS: $1.76 vs $1.70 est
REV: $83.13B vs $86.09B est

SBUX (Starbucks)

EPS: $0.41 vs $0.50 est
REV: $8.76B vs $8.86B est

What’s Happening Now

SPY SPDR S&P 500
As May trading starts, the old adage “sell in May and go away” is once again making the rounds, but the data tells a different story in post-election years. Historically, May has been a seasonally strong month for the S&P 500 during these cycles, posting gains 85% of the time with an average return of +2.13%. With the index already off to a solid start this month, traders will be watching closely to see if this high-probability pattern holds true once again.

MSFT Microsoft
Microsoft crushed expectations this quarter, posting a standout earnings report that topped both revenue and EPS estimates while delivering forward guidance that exceeded Wall Street’s forecasts. The stock has surged more than 10% since the release, fueled by a wave of bullish analyst upgrades. New price targets range from $450 to $550, positioning the most optimistic call as a potential 26% upside from Friday’s close. With momentum firmly in its corner, Microsoft continues to assert its leadership in both cloud and AI-driven growth.

META META Platforms
Meta delivered a strong earnings beat this quarter, surpassing both revenue and EPS estimates, with a notable EPS surprise of +21.78%. Daily active users climbed to 3.43 billion (+190 million YoY), demonstrating continued platform engagement. However, losses from its Reality Labs division remain a significant drag on the bottom line, keeping the metaverse bet in the red. That said, Rosenblatt’s new street high target of $918 reflects a potential 54% upside from Friday’s closing price.

Believe it or not, this is just a fraction of what happened in the markets this week. For a full rundown delivered straight to your inbox every weekend, sign up for The Official Trendspider Newsletter!