Stock market rallies to record highs amid strong tech earnings but geopolitical risks loom
Major U.S. stock indexes hit all-time highs on May 1st, driven by impressive earnings from tech giants like Apple. The S&P 500 and Nasdaq reached record closing levels, but volatility remains as investors face the Iran conflict and elevated oil prices.
Market Record Highs
The S&P 500 rose to a fresh all-time intraday high on Friday, boosted by Apple shares, while oil prices fell as a new month of trading got underway. The broad market index advanced 0.29% to end at 7,230.12. The Nasdaq Composite added 0.89%, reaching an all-time high and closing at 25,114.44. Both indexes posted closing records.
Tech Earnings Drive Gains
Shares of Apple climbed more than 3% after the consumer tech giant posted a fiscal second-quarter earnings and revenue beat. Not only that, the company's revenue outlook for the current quarter was better than expected, overshadowing the fact that iPhone revenue fell short of estimates for the second time in three quarters.
Earnings Season Performance
A little over half of the S&P 500 have posted results thus far. Of those, more than 80% have beat expectations.
Global Central Bank Signals
The European Central Bank and the Bank of England on Thursday both held interest rates as expected — but the specter of impending hikes loomed over policymakers' statements. Traders are now pricing a 75% chance that the ECB hikes in June, and a more than 50% chance that the Bank of England does the same.
Volatility & Geopolitical Risks
News reports said Iran shared a new proposal to end the conflict, helping the market reverse early losses after a hot April.