“Momentum Is Tough to Fight” as Big Tech Drives Markets Higher

• Market momentum is strong, with all major moving averages trending upwards, making a bearish case difficult.
• S&P 500 earnings per share growth is 27%, the highest since Q4 2021, driven by net profit margin expansion in 7 out of 11 sectors.
• The chip sector is experiencing massive growth (e.g., Philadelphia Semiconductor Index up 38% in April) due to high spending on 'compute' for AI, while software companies face pressure.
• Upcoming earnings to watch include Palantir, AMD, Disney, McDonald's, and Coinbase, with focus on consumer spending trends and company-specific strategies.

Investopedia's Caleb Silver discusses the current market momentum, highlighting that it's 'tough to fight' as Big Tech earnings continue to drive markets higher. He notes broad strength with 7 of 11 S&P 500 sectors experiencing net profit margin expansion, and significant growth in the chip sector due to AI spending. The week ahead features key earnings from various sectors.