Stocks Hold Gains After Economic Data as Oil Falls: Markets Wrap
(Bloomberg) — Signs of economic resilience and a batch of solid corporate earnings fueled a rebound in stocks, which also gained as oil retreated from a four-year high.
Equities remained higher after a report showed the US economy accelerated at the start of the year, bouncing from a government-shutdown-driven slump at the end of 2025. Bond yields remained lower. Brent crude dropped to $114.
Inflation-adjusted gross domestic product increased an annualized 2% in the first quarter, according to an initial estimate by the Bureau of Economic Analysis. Consumer spending increased at a better-than-expected 1.6% rate, driven by demand for services. A separate report showed jobless claims plunged to the lowest level in decades.
The data was released a day after Federal Reserve officials left interest rates unchanged, but revealed a deepening division over the outlook for policy amid increased uncertainty caused by the conflict in the Middle East.
Meantime, a frenzied week of earnings reports offered a glimpse at how some of the world’s biggest tech companies are doing in artificial intelligence. The upshot: Alphabet Inc.’s Google is seeing a clear payoff from its AI spending, while Meta Platforms Inc. is lagging behind. Apple Inc. is due to report results after the close.
Elsewhere, the yen climbed as traders speculated Japan is intervening in the foreign-exchange market, hours after officials delivered a “final” warning to investors against selling the currency.
Corporate Highlights:
Caterpillar Inc. posted first-quarter earnings that beat Wall Street expectations on strong sales of construction machinery and equipment used to generate electricity for artificial intelligence data centers. Mastercard Inc.’s earnings beat estimates as spending climbed in the first three months of the year. Eli Lilly & Co. raised its full-year sales outlook on the strength of its weight-loss drugs and high hopes for its new obesity pill. Merck & Co. reported first-quarter sales that beat Wall Street estimates as demand ramps up for newer products like Winrevair and an injectable version of cancer blockbuster Keytruda. Bristol Myers Squibb Co.’s quarterly profit and sales beat Wall Street’s expectations, a sign of strength in the drugmaker’s business as it awaits the results of closely watched clinical trials that will determine its future. Royal Caribbean Cruises Ltd.’s outlook for the year suggests it will be able to weather headwinds such as higher fuel costs and disruptions on its Middle Eastern itineraries. Hershey Co. posted first-quarter sales and profit that beat Wall Street expectations, helped by higher prices. Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.5% as of 8:36 a.m. New York time Nasdaq 100 futures rose 0.6% Futures on the Dow Jones Industrial Average rose 0.6% The Stoxx Europe 600 rose 0.9% The MSCI World Index rose 0.2% Currencies
The Bloomberg Dollar Spot Index fell 0.5% The euro rose 0.2% to $1.1697 The British pound rose 0.2% to $1.3508 The Japanese yen rose 2.2% to 156.82 per dollar Cryptocurrencies
Bitcoin rose 0.9% to $76,319.09 Ether rose 1.1% to $2,264.52 Bonds
The yield on 10-year Treasuries declined three basis points to 4.40% Germany’s 10-year yield declined five basis points to 3.06% Britain’s 10-year yield declined six basis points to 5.01% Commodities
West Texas Intermediate crude fell 1.4% to $105.37 a barrel Spot gold rose 1.8% to $4,627.72 an ounce ©2026 Bloomberg L.P.
