Stocks End Week on Quiet Note as AI Strength Offsets Broad Weakness

The market wrapped up a constructive week with a muted session, as the S&P 500 (-0.1%), Nasdaq Composite (+0.4%), and Dow Jones Industrial Average (-0.6%) traded in a narrow range near their baselines.

Geopolitical developments took a back seat ahead of this weekend’s U.S.–Iran negotiations, which will be led by Vice President Vance. While President Trump reiterated to The New York Post that military strikes could resume if talks fail, markets showed little reaction. Oil prices remained stable, with crude settling $1.34 lower (-1.4%) at $96.55 per barrel after hovering near the $98 level for most of the session.

Attention instead turned to economic data, which offered early signals on how the Iran conflict is feeding into inflation and sentiment. March CPI came in hotter than expected at 0.9%, driven largely by energy prices, while core CPI rose a more moderate 0.2%, slightly below expectations. Meanwhile, the preliminary April reading of the University of Michigan Consumer Sentiment Index dropped to 47.6, though the report had limited market impact given that much of the survey data preceded the recent ceasefire agreement.

Sector performance was mixed, with just four S&P 500 sectors closing higher. The information technology sector (+0.8%) led the advance, supported by continued strength in semiconductors. Taiwan Semiconductor Manufacturing Company reported strong quarterly revenue, lifting peers such as Advanced Micro Devices and NVIDIA. The PHLX Semiconductor Index rose 2.3%, with outsized gains from Super Micro Computer and Coherent Corp..

AI-related momentum extended beyond traditional index components. CoreWeave surged following a multi-year agreement with Anthropic to support its Claude AI models. However, that same announcement weighed on parts of the software ecosystem, as concerns around AI-driven disruption intensified. Akamai Technologies dropped sharply, while the broader software segment lagged, dragging down the iShares GS Software ETF.

The consumer discretionary sector (+0.6%) also performed well, aided by gains in Amazon and Tesla. Strength in mega-cap growth stocks helped the Vanguard Mega Cap Growth ETF outperform and supported the broader index, even as equal-weighted measures lagged.

Additional pockets of strength included the materials sector (+0.6%) and real estate sector (+0.2%). However, the majority of sectors finished lower, led by defensive areas. The consumer staples sector (-1.4%) and health care sector (-1.3%) were the weakest performers, while the energy sector (-0.8%) lagged amid stabilizing oil prices.

Financials also underperformed, though major banks such as Goldman Sachs and Citigroup showed relative resilience ahead of next week’s earnings reports.

Outside of large caps, the Russell 2000 (-0.2%) and S&P MidCap 400 (-0.3%) posted modest declines.

In sum, the session reflected a market supported by AI-driven momentum in semiconductors and mega-cap growth names, even as broader participation weakened. With geopolitical risk temporarily subdued, attention now shifts to the outcome of the upcoming U.S.–Iran talks, which could prove pivotal in determining whether this week’s gains can be sustained.

Our FTInvest 11 model portfolio declined 0.41% to close at 980.99, extending the mild pullback following earlier gains this week. The portfolio remains below its all-time high of 1,039.51, with recent sessions reflecting a short-term consolidation phase after the strong rebound in early April.

Based on the start-of-year level of 928.18, FTInvest 11 is now up approximately +5.69% year-to-date, maintaining solid performance despite the recent dip. The portfolio continues to demonstrate resilience, with its disciplined, value-driven approach supporting stability as markets navigate ongoing fluctuations.