Big Tech Led the Market’s April Rally. It’s About to Be Tested.

Big Tech propelled April’s rally, but that momentum faces a test as major earnings from Alphabet, Microsoft, Amazon and Meta approach. The Nasdaq pulled back about 1% after hitting a closing high Monday, while the S&P 500 slipped roughly 0.6% and the Dow edged lower. Selling intensified in chipmakers and AI spenders after a Wall Street Journal report that OpenAI missed user and revenue targets, putting AI-expenditure concerns back in focus. The Nasdaq is on pace for its best month since April 2020—nearly a 15% monthly gain—prompting some technicians to warn the setup resembles risky historical precedents. Upcoming quarterly results will be a key catalyst that could confirm or reverse the recent tech-led advance.