S&P 500 and Nasdaq Close at Record Highs as Apple Earnings Drive May Rally

The S&P 500 and Nasdaq Composite both closed at all-time highs on Friday, May 1, with Apple shares surging more than 3% after a stronger-than-expected earnings report, even as the Dow Jones Industrial Average slipped and oil prices retreated on geopolitical developments.

The S&P 500 advanced 0.29% to close at 7,230.12, while the Nasdaq added 0.89% to finish at 25,114.44 — both setting closing records. The Dow fell 152.87 points, or 0.31%, to settle at 49,499.27.

Apple's fiscal second-quarter results drove much of the session's momentum. The company posted beats on both earnings and revenue, and its outlook for the current quarter exceeded analyst expectations. iPhone revenue did fall short of estimates for the second time in three quarters, but that shortfall did not overshadow the broader results.

The records extended a strong stretch for equities. The S&P 500 had already crossed the 7,200 threshold for the first time in the prior session, and Friday's gains helped both the S&P 500 and the Nasdaq secure their strongest monthly performances since 2020. The Dow posted its best monthly showing since November 2024.

Analysts attribute the broader rally to a resilient first-quarter earnings season and investor optimism around easing tensions in the Middle East, even as a U.S. military conflict with Iran has weighed on sentiment at various points this year. All three major indexes are currently trading above their levels at the start of 2026.

Oil prices fell sharply during the session after Iran reportedly relayed a response through Pakistani mediators to the latest U.S. amendments to a draft peace agreement. U.S. West Texas Intermediate crude futures dropped 2.98% to settle at $101.94 a barrel, while international benchmark Brent crude slid 2.02% to $108.17 a barrel. The declines moderated somewhat after President Donald Trump said Friday he was dissatisfied with Iran's new offer, stating that the country "wants to make a deal, but I'm not satisfied with it."

David Krakauer, vice president of portfolio management at Mercer Advisors, said he remains constructive on equities over the longer term. "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," Krakauer said. He also noted that while the artificial intelligence spending wave will produce winners and losers, "the enhanced productivity story remains intact."

Bank of America analyst Craig Siegenthaler reiterated a buy rating on alternative asset manager Blue Owl on Thursday, while lowering his price target by $3 to $18 — a level that still implies upside of nearly 85% from where the stock closed Thursday. Blue Owl surged close to 10% in Thursday's session after disclosing it had earned approximately ten times its initial investment in SpaceX. Despite that gain, shares remain down more than 33% in 2026 amid broader investor concerns about the private credit sector.

With earnings season continuing and geopolitical uncertainty around the Iran conflict still unresolved, equity markets will likely face persistent volatility even as major indexes hold near historic levels.

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