US equities ended Friday on a mixed note, with the S&P 500 and Nasdaq Composite extending their record-setting run, while the Dow Jones Industrial Average lagged as investors weighed strong earnings against geopolitical uncertainty and easing oil prices.
The S&P 500 rose 0.3% to a fresh intraday and closing high, while the Nasdaq Composite gained 0.9%, also reaching a new record.
In contrast, the Dow fell 153 points, or 0.3%, underperforming its peers.
The latest moves cap a strong period for equities, with both the S&P 500 and Nasdaq posting their strongest monthly gains since 2020.
The Dow also recorded its best monthly performance since November 2024, underscoring the broader strength in markets despite ongoing global risks.
Apple leads tech rally, lifts broader market
Gains in technology stocks were led by Apple, which climbed more than 3% after delivering better-than-expected fiscal second-quarter earnings and revenue.
The company also issued a stronger-than-expected outlook for the current quarter, helping offset concerns over weaker iPhone sales, which missed estimates for the second time in three quarters.
Apple’s performance provided a significant boost to the broader market, particularly the Nasdaq, as investors continued to reward companies showing resilience in earnings and forward guidance.
The strength in tech was echoed across other major names.
Several companies within the so-called “Magnificent Seven” reported earnings during the week, with investors closely monitoring whether heavy artificial intelligence investments are beginning to translate into returns.
Beyond mega-cap tech, corporate earnings more broadly have surprised to the upside.
According to LSEG data, analysts now expect first-quarter earnings growth of 27.8% year-on-year, marking the strongest expansion since the fourth quarter of 2021.
Of the 314 companies that have reported so far, 83% have beaten earnings estimates, while 78% have exceeded revenue forecasts.
Oil prices ease amid Iran developments
Oil prices declined during the session, providing additional support to equities, as markets reacted to signs of renewed diplomatic engagement between the United States and Iran.
US West Texas Intermediate crude futures fell 2.98% to settle at $101.94 per barrel, while Brent crude dropped 2.02% to $108.17.
Prices had earlier fallen further before paring losses after comments from President Donald Trump.
The decline followed reports that Iran had submitted a response through Pakistani mediators to a US proposal aimed at ending the ongoing conflict.
However, Trump later expressed dissatisfaction with the offer, stating that Iran “wants to make a deal, but I’m not satisfied with it.”
The conflict has disrupted shipping through the Strait of Hormuz, a critical energy corridor, contributing to volatility in oil markets and raising concerns about inflation and global supply chains.
Strong earnings and outlook support equities
Despite geopolitical headwinds, the broader outlook for equities remains constructive, supported by robust earnings growth and improving investor sentiment.
Economic data released during the week showed US factory activity expanding for a fourth consecutive month, although inflation pressures remain a concern, with the prices-paid component reaching its highest level in four years.
As markets enter May, a period historically associated with weaker returns, investors are weighing seasonal trends against current momentum.
Since 1945, the S&P 500 has averaged gains of about 2% from May through October, compared with around 7% from November through April.
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