NEW YORK, May 1, 2026, 07:20 EDT
Early Friday, U.S. equity futures showed a split picture: Apple’s move higher before the bell nudged Dow and S&P 500 contracts into positive territory, while Nasdaq 100 futures lagged. As of 6:49 a.m. ET, Dow Jones futures for June had added 132 points, or 0.26%. S&P 500 futures were up by 8 points, a 0.11% rise. Meanwhile, the Nasdaq 100 slipped, futures dropping 34.75 points, or 0.13%.
Wall Street just wrapped up April on a strong note—Dow up 1.62% Thursday, S&P 500 picking up 1.02%, and the Nasdaq tacking on 0.89%. Both the S&P 500 and Nasdaq locked in their largest monthly percentage gains in years.
That’s why traders are zeroed in on Friday’s open. The market’s pushing to stretch its earnings-fueled run, yet it’s bumping up against pricey oil, sticky inflation, and a Fed that isn’t leaving much room for rapid rate cuts. Samuel Tombs, who heads U.S. economics at Pantheon Macroeconomics, called first-quarter growth “respectable,” but said the real momentum was already “anemic before the energy shock” truly hit. Reuters
Apple gave the market a solid lift early, with shares ticking up after Reuters flagged the company’s best quarterly sales growth in over four years. Sales got a boost from the iPhone 17 Pro line and the affordable MacBook Neo. IDC’s Nabila Popal points to pricing: Apple now faces the challenge of keeping market share while pushing higher price tags.
It wasn’t just Apple making headlines. Shares of Reddit surged, fueled by a brighter revenue outlook this quarter. The company credited new AI-powered ad tools that drop ads directly into topic-centered communities. Chief Operating Officer Jen Wong told Reuters Reddit is “still hiring”—standing apart from the layoffs seen at Meta, Snap and Pinterest. Reuters
Roblox dropped sharply after slashing its bookings outlook for the year. Bookings—mostly revenue from users purchasing Robux, its in-game currency—face new headwinds, according to D.A. Davidson’s Wyatt Swanson. He pointed to rising competition from Fortnite and the looming launch of “Grand Theft Auto VI” by Take-Two, warning these could weigh on the numbers well into 2027. Reuters
Oil prices lingered at levels that kept equities on edge. Brent crude edged up to $111.53 a barrel by 1103 GMT, with West Texas Intermediate at $105.65. Diplomatic moves to end the Iran conflict stalled, and ongoing disruption in the Strait of Hormuz continued to squeeze a significant chunk of global oil and LNG supply.
Investors found little relief in the latest macro numbers. The personal consumption expenditures price index, watched closely by the Federal Reserve as its favored inflation measure, climbed 0.7% in March, marking a 3.5% increase over the last year. Core PCE—which excludes food and energy—remained stuck at 3.2% year-over-year.
This week, the Fed left its key overnight rate unchanged at 3.50%-3.75%. But division at the central bank surfaced: Reuters said four policymakers broke ranks and dissented. Futures were signaling scant likelihood of a cut before year-end, with odds for a hike by next spring hovering near fifty-fifty.
Earnings might not cut it for much longer. Jeff Buchbinder, LPL Financial’s chief equity strategist, says economic risk keeps mounting every day Brent holds above $120 and the blockade drags on. For equities, that spells pricier fuel, demand taking a hit, and a need to reconsider valuations after April’s quick rebound.
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