Closing Bell: Stocks Rally as Tech Leads; Boeing and Tesla Earnings Drive Momentum

Key Points

• U.S. equities pulled back modestly, with the S&P 500 (-0.41%) and Nasdaq‑100 (-0.57%) under pressure, while the Russell 2000 outperformed but still fell (-0.37%).
• Texas Instruments (TXN) surged after a blowout Q1, with AI-driven data-center revenue up ~90% YoY and strong industrial growth signaling an early-cycle upswing.

U.S. equities pulled back modestly, with the S&P 500 down 0.41% and the Nasdaq‑100 sliding 0.57%, while the Russell 2000 outperformed but still finished lower by 0.37%. Defensive sectors led, as Utilities, Industrials, and Consumer Staples outperformed, while Information Technology, Consumer Discretionary, and Financials lagged.

Texas Instruments Signals Early-Cycle Upswing as AI Pushes Into Analog

Texas Instruments (TXN) delivered a blowout Q1, reinforcing its role as an early-cycle bellwether as AI infrastructure spending pushes deeper into the analog layer. Revenue of $4.83B rose 18.6% YoY and beat consensus, while EPS of $1.68 crushed expectations on broad-based strength led by a ~90% surge in data-center demand. Industrial revenue climbed more than 30% with inventories lean and sell-through improving, while automotive posted mid-single-digit growth, with management flagging the start of a new up-cycle after tariff and cost pressures.

ServiceNow Drops Despite Beat as Geopolitics and M&A Pressure Margins

ServiceNow (NOW) posted a narrow Q1 beat and raised guidance, but the stock sold off sharply as investors focused on geopolitical deal delays in the Middle East and near-term margin pressure from the Armis acquisition. Management quantified a ~75 bps drag to subscription growth from delayed sovereign cloud deals tied to the regional conflict, with closures pushed later into the year and inherently lumpy given on‑prem recognition.

Economic Data (ET)

10:00 AM — Revised UoM Consumer Sentiment

Earnings Calendar

Before Market Open: PG, HCA, NSC, CHTR

After Market Close: N/A

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