Stock Market Reaches New Highs; S&P 500 and Nasdaq Close at Record Levels as Earnings Beat Expectations
Major U.S. stock indexes hit all-time highs on May 1st as strong corporate earnings and easing oil prices boosted investor sentiment. Apple's impressive quarterly results and AI investment momentum drove technology stocks higher.
Record Market Closes
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.
Technology Leadership
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.
AI Momentum Continues
One theme reinforced this week is that AI capex, or capital spending, isn't slowing, as outlays could approach $700 billion in 2026. Markets are rewarding AI spending that shows near-term monetization, as seen with Alphabet (GOOGL), and punishing spending without clear incremental returns—something analysts criticized after viewing Meta Platforms' (META) results.
April Gains
The S&P 500 Index and Nasdaq Composite forged new all-time highs yesterday, with 10 of 11 sectors up, sealing an April with 10% gains for the broader market that were its best for any month in five years.