Wall Street is feeling greedy again | Lattice Finance Blog

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The market’s in a mood

Wall Street spent Thursday acting like it just got a fresh espresso shot. The S&P 500 closed above 7,200 for the first time, the Nasdaq kept climbing, and CNN’s Fear & Greed Index edged higher to 66.6 — still safely parked in the “Greed” lane.

That’s the kind of backdrop that tells you investors are willing to keep buying dips, even after a monster April. The S&P 500 jumped 10.4% last month, which is the sort of move that makes your portfolio feel like it just discovered pre-workout.

Earnings: same party, different reactions

Not all the earnings reactions were created equal. Caterpillar ripped about 10% higher after stronger-than-expected quarterly results, while Alphabet also popped roughly 10% on a strong first quarter revenue print. Meanwhile, Meta fell 8.6% and Microsoft slipped 3.9% after their own quarterly updates.

So yes, the market is still rewarding growth, but it’s also being picky. Investors are cheering companies that can prove demand is real, while punishing anything that smells even a little bit like “good, but not wow.”

Macro is still doing the heavy lifting

The day’s economic data didn’t exactly scream “slowdown.” First-quarter GDP came in at a 2% annualized pace, core PCE inflation ticked higher, and weekly jobless claims dropped to their lowest level since 2022.

That mix is a little spicy: growth isn’t dead, inflation is still sticky, and the labor market isn’t cracking yet. Translation? The Fed probably won’t get a clean, easy victory lap anytime soon.

What investors should watch next

The next big question is whether this rally can keep stretching without tripping over its own optimism.

Energy giants Exxon and Chevron are up next with earnings, and those prints can move the tape fast.
If inflation stays stubborn, rate-cut hopes could keep getting kicked down the road.
And if mega-cap tech keeps wobbling while the index rises, the market’s “everything is fine” vibe may get a little harder to defend.

Big picture: the market is still in full-on risk appetite mode — but with earnings season and macro data both in the driver's seat, that mood can turn on a dime.