The S&P 500 closed at 7,230.12, marking a 0.29% advance and crossing the 7,200 threshold for the first time in history. The Nasdaq Composite rose 0.89% to finish at 25,114.44, also securing a closing record. These gains capped the strongest monthly performances for both indexes since 2020, according to reporting from CNBC.
The Dow Jones Industrial Average diverged from the tech-heavy rally, slipping 152.87 points, or 0.31%, to settle at 49,499.27. Despite the Friday dip, the Dow recorded its strongest monthly performance since November 2024.
Apple earnings drive tech-heavy records
Apple shares climbed more than 3% on Friday after the company reported a beat on both revenue and fiscal second-quarter earnings. The rally was further supported by a revenue outlook for the current quarter that exceeded expectations, which Boston.com noted overshadowed the fact that iPhone revenue missed estimates for the second time in three quarters.
The concentration of the April rally remained centered on a few massive players. Alphabet, Amazon, and Nvidia each saw a notable rise in market value during April, contributing to the broader surge in the technology sector. Broadcom also experienced a meaningful increase in valuation. This trend is reflected in the Nasdaq 100, which gained nearly 16% in April—its best month since October 2002, per Yahoo Finance.
Beyond the titans, other companies topped analyst expectations. Sandisk jumped 8.3% due to demand from data centers, and Estee Lauder rose 3.4% on the back of strength in China. However, the outlook for the broader economy remains mixed. Noel Wallace, CEO of Colgate-Palmolive, indicated that the company expects volatile macroeconomic conditions and slower category growth to continue in 2026
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Iran diplomatic friction triggers oil volatility
Energy markets saw oil prices fall on Friday following reports that Iran had sent a response to the latest U.S. amendments to a draft agreement intended to end the Middle East conflict, utilizing Pakistani mediators. This movement came as the market reacted to the possibility of renewed communication between the two nations.
The relief rally in oil was tempered by comments from the White House. President Donald Trump stated later Friday that he was displeased with the new peace offer from Iran.
“wants to make a deal, but I’m not satisfied with it.” President Donald Trump
U.S. West Texas Intermediate crude futures fell 2.98% to settle at $101.94 a barrel. International benchmark Brent crude futures slid 2.02% to $108.17 a barrel. For context, Brent crude was trading at a little more than $70 per barrel before the war began.
The volatility is tied largely to the status of the Strait of Hormuz. Prices spurted higher earlier in the week on concerns that the war would keep the strait closed, trapping oil tankers in the Persian Gulf. Market movements have remained erratic, reversing quickly as hopes for a reopening of the strait fluctuate.
Earnings growth vs. geopolitical risk
Despite the ongoing war with Iran, U.S. equities are trading well above their January 2026 starting points. This resilience is largely attributed to a strong first-quarter earnings season. According to FactSet data cited by the Associated Press, 84% of the S&P 500 companies that have reported so far have topped analyst estimates, with the index on track for roughly 15% profit growth over the previous year.
The AI trade continues to be a primary engine for this growth. The semiconductor sector experienced a significant uptrend in April, reflecting the broader enthusiasm for artificial intelligence hardware. This momentum was seen across various chipmakers, including industry leaders like Intel and AMD, as demand for high-performance computing remains robust.
David Krakauer, vice president of portfolio management at Mercer Advisors, suggests that the long-term trajectory for equities remains positive, citing earnings growth potential both in the U.S. and overseas.
“There could be always new news or some sentiment declining, where we could see a little bit of a pullback here after a strong pop up, but we’re still just overall strategically bullish on equities,” David Krakauer, Mercer Advisors
Krakauer noted that while the enhanced productivity story remains intact, there will be winners and losers in technology, as not all
of the artificial intelligence capital expenditures spending is expected to pay off.
Market trajectory for May
The transition into May presents a test of whether the rally can broaden. While technology-focused funds saw a notable rise in April, other sectors showed more varied results. Some non-tech sectors experienced downward pressure toward the end of the month, highlighting a divergence in performance between growth and value assets.
Market participants are monitoring the bullish momentum of Big Tech alongside the instability of the Middle East. While the S&P 500 and Nasdaq have secured their strongest monthly performances since 2020, the primary uncertainty remains the trajectory of oil prices and the eventual resolution of the conflict with Iran.
