The S&P 500 closed Thursday at 7,108.40, slipping 0.41% as investors balanced a turbulent geopolitical backdrop against the strongest earnings season in two years. The Nasdaq Composite shed 0.89% to finish at 24,438.50, while the Dow Jones Industrial Average declined 179 points to close at 49,310.
Despite the session's declines, market breadth remains constructive: of the approximately 180 S&P 500 companies that have reported Q1 2026 results, 78% have beaten earnings estimates—above the historical average of 73%—and 67% have topped revenue forecasts. Blended earnings growth stands at approximately 12% year over year.
Chip Sector Carries the Week
The semiconductor sector has been the undisputed star of the earnings season. Texas Instruments surged 19% Thursday on a massive earnings beat, following Intel's after-hours explosion higher. The Philadelphia Semiconductor Index is up more than 12% over the past five trading sessions.
"The AI buildout has moved from hyperscalers to the broader semiconductor ecosystem," said Piper Sandler's chief market strategist. "Companies that supply the picks and shovels—analog chips, power management—are finally getting the valuation re-rating that pure AI names got 18 months ago."
100+ Earnings Reports Next Week
The most consequential week of earnings season begins Monday. Meta reports April 29, followed by Microsoft April 30, Amazon May 1, and Apple May 2. Boeing, Caterpillar, Exxon, and Chevron also report, giving investors a comprehensive snapshot across technology, energy, industrials, and consumer spending.
Options markets show elevated implied volatility around all four mega-cap tech names, reflecting investor uncertainty about how AI spending is translating into revenue growth and whether the economic headwinds from oil prices are beginning to show up in business results.