Falcon’s View – Week ending 1 May 2026
Performance
NASDAQ 100: +1.49%
S&P 500: +0.91%
My portfolio: –1%
Market pulse
Between the New York close on 24 April and the close on 1 May 2026, U.S. equities advanced primarily because strong first-quarter earnings – especially from mega-cap technology and AI-linked companies – overwhelmed macro headwinds. The Nasdaq 100’s outperformance versus the S&P 500 reflected renewed confidence that AI and cloud spending is translating into revenue and profits, although the trade briefly stumbled on concerns about AI growth and semiconductor valuations. The main counterweights were the Iran-related oil shock, elevated gasoline and energy-driven inflation, and a Federal Reserve that held rates steady but sounded more divided and less eager to cut. Resilient GDP and jobless-claims data reassured investors that the economy was still expanding, while the hot PCE inflation print kept bond-yield and valuation pressure in the background. Net-net, it was an earnings-led, tech-led rally climbing a wall of oil, inflation and Fed-risk worries.
Crowd vs. price
Revival in relative investor interest continues.
Holdings & Watchlist Notes
Alphabet Inc / GOOG: +11.95%
Alphabet’s near-12% gain between the 24 April and 1 May 2026 closes was driven primarily by a decisive Q1 earnings beat that reframed the company’s AI story. The key catalyst was Google Cloud, where revenue surged 63% to $20bn and backlog nearly doubled to more than $460bn, giving investors evidence that Alphabet’s heavy AI spending is converting into contracted commercial demand. At the same time, 19% growth in Search & Other and all-time-high search queries eased fears that generative AI would undermine Google’s core advertising business. The company’s stronger operating margins, EPS beat, TPU monetization plans and raised dividend added to the positive reaction. In short, the market rerated Alphabet from an AI capex-risk story into one of the clearest AI revenue winners among the major U.S. technology platforms.