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Stocks maintain gains after whipsawing as traders digest war updates

Stocks rose for the fourth consecutive session as traders vacillated between hopes for a ceasefire and fears of an escalation.

The S&P 500, Nasdaq 100, and Russell 2000 managed to maintain gains, and oil rose amid a volatile session. Traders vacillated between hopes for a ceasefire and fears of an escalation after President Trump said the entire country of Iran could be taken out in one night, maybe tomorrow.”

Friday’s jobs report showed that US hiring surged in March, as job growth of 178,000 crushed estimates of 65,000, and the unemployment rate unexpectedly dipped to 4.3%, below the 4.4% expected by economists.

This was statistically the most boring trading day in US stocks since the war began.

The daily range in the SPDR S&P 500 ETF as a share of the previous session’s closing price was just 64 basis points. That’s the least volatile intraday action since February 25 — before the US-Israeli strikes on Iran.

Consumer discretionary was the best-performing sector, while utilities fared the worst.

Bitcoin managed to cross $70,000 for the first time in April, but couldn’t maintain the level.

Stocks that moved higher:

Stocks that moved lower:

  • Lucid fell after saying Q1 deliveries of the Lucid Gravity were disrupted due to a supplier quality issue.

  • Roblox dropped as Wells Fargo lowered its price target on the stock to $78 from $97.

  • Petrochemicals stocks LyondellBasell and Dow, Inc. dipped after Bank of America downgraded the stocks to “underperform” from “neutral,” saying tailwinds from Mideast war are unsustainable.

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Hardware stocks jump thanks to server demand and record Lenovo revenue

Server stocks are rallying as Dell, Super Micro Computer, and Hewlett Packard Enterprise ride the momentum of Hong Kong-based Lenovo. The PC makers stock rose 19% on Friday, hitting an all-time high, on record Q4 earnings.

Powering the positive earnings report was the companys AI-related revenue, which grew 84% in the fourth quarter and now makes up over a third of total revenue. Investors seem to think the increased demand for servers could have trickle-down effects for other companies.

The companys results and commentary reinforced the outlook for strong AI-infrastructure demand while indicating resilient broader traditional server and storage spending, wrote Woo Jin Ho, a senior technology analyst at Bloomberg Intelligence. Lenovos $21 billion AI-server pipeline and remarks that demand is outpacing supply support Dells AI-demand momentum and point to robust orders.

AIs insatiable computing demand is reshaping the hardware industry and driving up server demand.

Dell will report first-quarter earnings on Thursday, May 28.

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Ross Stores surges as Q1 results beat expectations, full-year guidance raised

Ross shares are rising after the company delivered strong Q1 results, with sales topping Wall Street’s projections.

The stock soared 6.3% just after the open.

Key numbers:

  • Earnings per share of $2.02 vs. $1.47 year over year (estimate: $1.72).

  • Sales of $6.01 billion, up 21% year over year (estimate: $5.61 billion).

  • Comparable sales growth of 17% (estimate: 8.58%).

CEO Jim Conroy attributed the results to better traffic in stores. “Customer traffic was the primary driver of the strong sales trend as compelling merchandise assortments, higher customer acquisition and engagement from our ongoing marketing initiatives, and an improved in‑store experience are resonating with shoppers.”

The company also noted that transaction volume grew across all key demographics, including “income levels, ethnicities, and age groups, including younger customers.” Sales were also likely buoyed by standard seasonal tailwinds, including consumer spending from tax refunds.

Backed by the strong quarter, the company lifted its full-year targets. Ross now projects same-store sales growth of 6% to 7%, up from the prior forecast of 3% to 4%, topping Wall Street’s estimate of 4.64%. It boosted its annual EPS guidance to a range of $7.50 to $7.74, versus the prior outlook of $7.02 to $7.36.

Ross Stores has been one of the retail sector’s standout performers this year, rising around 20% year to date as of Thursday’s close.

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