Live Vanguard IT ETF (VGT): Big Tech Capex Plans Embolden Markets

By Gerelyn Terzo Updated May 2, 3:50PM EDT · Published May 2, 11:28AM EDT

Key Points

The markets are on pace to finish the week on a positive note after all is said and done.
Tech stocks have been a positive catalyst, helped by economic data that has proven to be a tailwind.

Live Updates

Stocks Widen Lead

May 2, 2025 at 3:51 PM EDT | Gerelyn Terzo

Stocks have widened their lead headed into the weekend, led by a 2.4% gain in the financial sector while technology as a group is up about 1%. In the S&P 500, DexCom (Nasdaq: DXCM | DXCM Price Prediction) is a top performer, gaining 16% on the day, while Apple (Nasdaq: AAPL) has declined by 4.3%.

Here’s a look at where things are headed to end the final trading day of the week:

Dow Jones Industrial Average: Up 606.54 (+1.5%)
Nasdaq Composite: Up 279.91 (+1.6%)
S&P 500: Up 90.88 (+1.6%)

For the week, the S&P 500 is up approximately 2.8%.

NFLX Puts on a Show

May 2, 2025 at 12:32 PM EDT | Gerelyn Terzo

Netflix (Nasdaq: NFLX) stock is putting on a show, advancing beyond the $1,155 per share level and claiming its latest all-time high. The content streaming stock has strung together nearly a dozen consecutive winning trading sessions for the best showing in its history. Netflix’s market cap now hovers at $490.4 billion, up approximately 30% since mid-January. Technology is driving today’s market gains. Morgan Stanley is bullish on Taiwan Semi stock after Microsoft and Meta revealed their bullish AI capex plans.

Economy Shows Resilience

May 2, 2025 at 11:29 AM EDT | Gerelyn Terzo

The labor market continues to hold up in this economy after more jobs were added in April than expected. The results are a breath of fresh air to stocks as the economy attempts to stave off a recession. The U.S. economy added 177,000 new jobs last month, beating estimates of 133,000 but trailing March’s pace. April’s results were the first to reflect the impact from tariffs, a positive sign that conditions might not be deteriorating as quickly as feared.

Big Tech capex remains intact, buoying sentiment and leading the market gains, including a 1.3% advance in the Vanguard IT Index, led by stocks like Microsoft (Nasdaq: MSFT), Nvidia (Nasdaq: NVDA) and Palantir Technologies (Nasdaq: PLTR) today. All three of the major stock market averages are also posting gains, including a 400-point advance in the Dow Jones Industrial Average and 1% gains each for the Nasdaq Composite and S&P 500 index. In a bullish sign, Meta Platforms increased its 2025 capex plans to a range of $64 billion-$72 billion while lowering its expense outlook, a formula for 4% gains on the day.

After reporting their quarterly earnings results after the closing bell yesterday, Apple (Nasdaq: AAPL) and Amazon (Nasdaq: AMZN) stocks are taking it on the chin as signs of the tariff impact begin to emerge. While both companies surpassed estimates, Apple has heavy China exposure and Amazon believes it is equipped to navigate the tariffs. Apple has since prepared to shift more of its production to India. Also, Amazon Founder Jeff Bezos has filed to offload billions of dollars worth of AMZN shares.

Here’s a look at the performance as of morning trading:

Dow Jones Industrial Average: Up 420.22 (+1.03%)
Nasdaq Composite: Up 261.73 (+1.47%)
S&P 500: Up 71.45 (+1.28%)

Market Movers

Apple warned that tariffs will cut into its current quarter bottom line to the tune of $900 million, leading Jefferies analysts to cut their rating on the stock to “underperform” while Rosenblatt Securities lowered AAPl shares to “neutral” from “buy.”

Block (NYSE: XYZ) stock, previously known as Square, is among the worst performers in today’s session, sinking over 20% on a Q1 miss and stagnant growth.

DexCom (Nasdaq: DXCM) is rising by 13.5% today after reporting its Q1 results.

Palantir Technologies (Nasdaq: PLTR), one of the top 10 holdings in the VGT index, is tacking on 5.8% as the AI trade gets revived.

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About the Author Gerelyn Terzo →

Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.