The markets rebounded last week, with the S&P 500 climbing 2.43% and the Nasdaq 100 touching an all-time high. Tech earnings were the primary driver, but sentiment was also lifted by hopes that a potential peace deal between Russia and Ukraine might be within reach.
Still, the geopolitical backdrop remained tense. On Saturday, Ukrainian President Volodymyr Zelenskyy declared that his countrymen “will not give their land to the occupier,” rejecting President Donald Trump’s suggestion that a peace agreement could involve “swapping” territories with Russia. His comments came after an announcement on Truth Social that a long-awaited meeting with Russian President Vladimir Putin had been scheduled for next Friday in Alaska. Later that day, at the White House, Trump reiterated the idea of territory exchanges as part of a ceasefire, stating, “There’ll be some swapping of territories to the betterment of both”.
Geopolitical frictions also deepened between the United States and India. The Trump administration doubled tariffs on Indian goods from 25% to 50%, a move widely seen as retaliation for India’s continued oil trade with Russia. Analysts warn the escalation could disrupt key sectors from textiles to pharmaceuticals, marking the lowest point in US-India trade relations in years.
Tensions may soon spread further. Trump announced that tariffs on pharmaceuticals and semiconductor chips would be introduced “in the next week or so.” The initial levy on pharmaceuticals would be modest, but he signaled an eventual escalation to 150% and then 250% to encourage domestic production. “We’re going to be announcing on semiconductors and chips, which is a separate category,” the president continued. Levies on imported chips could sharply increase costs for large data center operators such as Microsoft, OpenAI, Meta Platforms, and Amazon, which plan to invest billions of dollars in advanced semiconductors to power their artificial intelligence businesses. Trump has repeatedly framed tariffs as a way to spur domestic manufacturing, and on Tuesday, he hailed Taiwan Semiconductor Manufacturing Co.’s plans to expand its US presence.
Weekly Earnings Roundup: Surprises & Misses
Several major companies released their earnings last week, including Palantir (NASDAQ: PLTR), Disney (NYSE: DIS), Novo Nordisk (NYSE: NVO), Uber (NYSE: Uber), Airbnb (NASDAQ: ABNB), AMD (NASDAQ: AMD), Shopify (NASDAQ: SHOP), and Pfizer (NYSE: PFE). Below is a quick look at some of the most notable names.
Palantir reported a 48% jump in quarterly revenue to more than $1 billion, crediting the “astonishing impact” of artificial intelligence on its business model. The company also raised its full-year revenue guidance to between $4.14 billion and $4.15 billion, well above analyst estimates of $3.91 billion. Shares rallied as investors cheered the AI-driven growth outlook.
Novo Nordisk posted revenues of $11.68 billion, up 13% year-over-year, continuing its strong performance in the pharmaceutical sector despite political headwinds.
Uber reported earnings per share of 63 cents, matching expectations, while revenue came in at $12.65 billion, slightly above forecasts. Management announced a massive $20 billion stock buyback program.
AMD reported adjusted earnings per share of $0.48 on revenue of $7.6 billion. While revenue exceeded estimates, EPS came in just shy of expectations. The company cited an $800 million hit from the Trump administration’s ban on selling its MI308 AI chips to China.
Top Gainers
Apple (NASDAQ: AAPL) shares jumped more than 10% after President Trump announced the company’s commitment to invest an additional $100 billion in the United States. The plan focuses on expanding domestic manufacturing to boost production of its products and sidestep potential tariffs on flagship iPhones. During Trump’s first term, Apple successfully secured exemptions from import taxes, and if CEO Tim Cook can do so again, it may offer the company a competitive advantage.
Tesla (NASDAQ: TSLA) was up by 9% over the week, after the company approved a $29 billion pay package for Elon Musk aimed at keeping the billionaire entrepreneur at the helm during a crucial pivot from its struggling core auto business to robotaxis and humanoid robots. Musk can claim the new award if he remains in a top executive role for another two years. “Under normal circumstances, a compensation package in the billions would raise some eyebrows. (But) clearly investors have benefited from Musk’s stewardship of Tesla,” said Camelthorn Investments adviser Shawn Campbell.
Top Losers
Super Micro Computer (NASDAQ: SMCI) fell 20% after its latest earnings failed to meet investor expectations. The company also issued a weak quarterly earnings guidance.
Upcoming Earnings: Key Stocks to Monitor
This week, the spotlight will turn to several high-profile names, including Circle Internet Group (NYSE: CRCL), CoreWeave Inc. (NASDAQ: CRWV), Cava Group (NYSE: CAVA), Cisco Systems (NASDAQ: CSCO), and Deere & Co. (NYSE: DE). Investors will be watching closely for not only the headline numbers but also commentary on supply chain resilience, geopolitical risks, and demand trends in key sectors. With markets at record highs and geopolitical uncertainty in the background, even slight deviations from expectations could trigger outsized moves.