Finance

Alphabet shares skyrocketed 10% after the company reported quarterly profits that nearly doubled analyst expectations, supported by a 63% increase in Google Cloud revenue. In contrast, Meta Platforms and Microsoft saw their shares decline by 8.7% and 3.9%, respectively, as investors reacted to higher projected capital expenditures for artificial intelligence infrastructure. Caterpillar also provided a boost to the industrial sector, surging nearly 10% after upgrading its annual revenue outlook.

The Commerce Department reported that the U.S. economy expanded at an annualized rate of 2% in the first quarter of 2026, a significant increase from the 0.5% growth seen in the previous quarter. Although this fell short of the 2.2% growth forecasted by Wall Street, underlying strength was visible in a 2.5% rise in consumer spending and private investment. However, surging energy costs linked to the conflict with Iran pushed the Federal Reserve's preferred inflation gauge to 3.5% in March.

Oil prices eased during recent trading sessions, with Brent crude falling 3.4% to approximately $114 per barrel and West Texas Intermediate dropping to around $105. This retreat followed a period of extreme volatility fueled by the ongoing military conflict between the United States and Iran. The stabilization in energy prices helped provide relief to the bond market, where the 10-year Treasury yield moderated to 4.38%.