S&P 500 closes higher for a fourth day in a row, notches 4% gain for the week

S&P 500 Closes Higher for a Fourth Day in a Row, Notches 4% Gain for the Week

April 25, 2025 — Wall Street Journal-style article

The S&P 500 closed higher for the fourth consecutive day on Friday, capping off a robust week that saw the benchmark index gain 4%, its best weekly performance since early February. Investors cheered a batch of stronger-than-expected corporate earnings and renewed optimism that the Federal Reserve may hold off on further interest rate hikes.

The broad-market index rose 0.8% on Friday to finish at 5,155.88, fueled by tech and consumer discretionary stocks. The Nasdaq Composite climbed 1.1%, while the Dow Jones Industrial Average added 230 points, or 0.6%, marking its third straight positive session.

Big Tech Drives the Rally

Tech heavyweights led the charge this week, with Apple, Microsoft, and Nvidia all posting significant gains. Microsoft shares jumped nearly 3% on Friday alone after the company reported quarterly revenue and profit that beat analysts’ expectations, driven by continued growth in its cloud computing division. Nvidia added 2.4% amid growing investor confidence in the company’s AI leadership.

The tech sector as a whole gained more than 5% over the week, bolstered by a slew of earnings beats and upbeat forward guidance. With nearly 30% of S&P 500 companies having reported first-quarter results, over 80% have surpassed earnings estimates, according to FactSet.

Rate Pause Hopes Renewed

Economic data released throughout the week hinted at cooling inflation and slowing job growth—two signs the Federal Reserve closely watches in its rate-setting decisions. March's Core PCE Price Index, the Fed’s preferred inflation gauge, rose 0.3%, in line with expectations and down from February’s pace.

“Investors are gaining confidence that the Fed may be able to engineer a soft landing,” said Alicia Chen, senior market strategist at BrightPath Capital. “With inflation decelerating and the labor market showing signs of moderation, the case for additional rate hikes has weakened.”

Fed officials have largely maintained a cautious tone ahead of next week’s policy meeting, with markets now pricing in an 80% probability that the central bank will hold interest rates steady.

Sector Highlights and Market Breadth

Beyond technology, consumer discretionary, financials, and industrials all posted strong weekly performances. Tesla surged 7.2% this week after CEO Elon Musk teased upcoming product announcements and reassured investors about margins.

Financials also found support as JPMorgan Chase and Bank of America reported solid loan growth and stable credit quality, easing concerns about balance sheet risks in a high-rate environment.

Market breadth improved throughout the week, with advancing stocks outpacing decliners on the New York Stock Exchange in four of the past five sessions—a signal that the rally is gaining traction beyond the megacap names.

Looking Ahead

Despite the strong week, investors remain cautious heading into a critical stretch of earnings and economic data. Next week will bring quarterly results from Amazon, Alphabet, and ExxonMobil, as well as the first reading of U.S. GDP growth for Q1.

“While this week’s rally is encouraging, we’re not out of the woods yet,” said David Harrington, portfolio manager at Ridgeview Investments. “The market will be watching closely to see if earnings strength is broad-based and if inflation continues its downward trend.”

For now, though, Wall Street is ending the week on a high note. The S&P 500’s four-day winning streak has helped recoup most of April’s earlier losses and put the index back within striking distance of its all-time high reached in late March.

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Market Snapshot (Friday, April 25, 2025):

• S&P 500: +0.8% to 5,155.88

• Dow Jones Industrial Average: +0.6% to 39,580.34

• Nasdaq Composite: +1.1% to 16,214.77

• 10-Year Treasury Yield: 4.19%

• WTI Crude Oil: $82.63/barrel

• Gold: $2,348.70/oz