Meta Platforms shines as Wall Street reacts to Alphabet's earnings

In the United States on Friday, April 25, 2025, stocks showed mixed performance as Wall Street closed out a strong week with the S&P 500 index rising nearly 4%. In recent days, the easing of U.S.-China trade tensions contributed to this buoyancy in the market, although conflicting headlines left uncertainty regarding discussions on tariffs between President Donald Trump and China's President Xi Jinping. Investor focus shifted towards stocks insulated from these geopolitical issues. Following this sentiment, Jim Cramer advised traders to concentrate on stocks less affected by the ongoing trade turmoil. Additionally, the decline in bond yields provided support for stocks, evidenced by the 10-year Treasury yield hovering around 4.26% on Friday. The latest consumer sentiment report from the University of Michigan indicated improvement in consumer attitudes, although inflation expectations, while down from previous levels, remained elevated. This context of mixed signals from economic data helped shape market dynamics, with investors closely monitoring the influences impacting stock performance. Meta Platforms, a major player in the technology and advertising sectors, had notable gains in its stock prices due to favorable conditions in the advertising market, partly influenced by Alphabet's recent earnings report. Alphabet, the parent company of Google, exceeded expectations in its quarterly earnings, particularly in advertising revenues, which likely contributed to the positive outlook for companies like Meta that rely on similar revenue streams. Meta is expected to report its own earnings the following week, and investors are keenly watching any potential advantages stemming from Alphabet's performance. Despite overall market caution due to geopolitical factors and concerns over inflation, stocks like Nvidia experienced positive momentum as shares climbed on Friday. However, analysts at Morgan Stanley expressed skepticism regarding Nvidia's future profitability, citing supply and export controls as impediments to its growth. In a shifting economic landscape, investors are encouraged to adapt their strategies based on evolving market conditions and shifting sentiments around trade and technology sectors.