NEW YORK, May 2, 2026, 13:06 EDT
The S&P 500 and Nasdaq both finished Friday at all-time highs, wrapping up yet another positive week for U.S. equities. Investors shrugged off concerns about inflation, oil, and a more hawkish Fed, with upbeat corporate earnings doing most of the heavy lifting. The Dow dropped on the session, but still managed a gain over the week.
This shift carries weight—investors hit May after the market already put up a sharp recovery from earlier pressure. The S&P 500 advanced 0.9% for the week, Nasdaq tacked on 1.1%, Dow picked up 0.5%, and the Russell 2000, which tracks smaller stocks, moved up 0.9%, according to AP market data.
Traders are caught between solid profit reports and the drag from elevated oil prices and bond yields, which still cast a shadow over valuations. The S&P 500 closed Friday with a gain of 21.11 points, or 0.3%, finishing at 7,230.12. The Nasdaq picked up 222.13 points, an increase of 0.9%, to 25,114.44. The Dow slipped 152.87 points, or 0.3%, ending at 49,499.27.
Earnings took the lead this time. Analysts, referencing LSEG I/B/E/S figures cited by Reuters, are calling for S&P 500 first-quarter earnings growth of 27.8% compared to last year—the fastest pace since Q4 2021. Out of 314 companies that have announced results, 83% topped profit forecasts, with 78% beating on revenue.
“Today’s action is really the cherry on top of another solid week for investors as earnings season continues to come in stronger than expected,” said Ryan Detrick, chief market strategist at Carson Group, speaking to Reuters. He added, “It looks like that upward momentum very well could continue in May.” Reuters
Apple climbed 3.3% after the company issued a robust sales outlook, pointing to strong demand for both the iPhone 17 and MacBook Neo. Atlassian surged 29.6% as it raised its annual guidance. Software names Salesforce tacked on 4.1%, ServiceNow added 3.2%. Roblox didn’t join the rally, sliding 18.3% following a cut to its annual bookings forecast.
Tech shares kept pulling the market higher, with the Nasdaq once again outpacing the rest. According to Reuters, five of the so-called Magnificent Seven—a cluster of AI-driven megacap names—posted results this week, sharpening attention on whether those big bets on artificial intelligence are finally paying off in earnings.
The rally had its blemishes. Energy lagged among the S&P 500’s 11 sectors Friday, hurt by softer crude futures. Exxon Mobil slipped 1.0% and Chevron dropped 1.4% following results pressured by Middle East turmoil and a profit slump at Chevron.
The real hitch? Oil and rates both threaten to cloud the earnings picture. “We have these fast-rising profits on one side, and then on the other, we have upward pressures on oil prices and bond yields,” said Angelo Kourkafas, senior global investment strategist at Edward Jones, speaking to Reuters. April’s rally puts the market at risk of a pause, he added: “so potentially we may enter some period of consolidation.” Reuters
Brent crude briefly surged past $120 a barrel this week before slipping back, according to Reuters. “The economic risk rises every day that oil stays elevated and the Middle East conflict drags on,” said Jeff Buchbinder, chief equity strategist at LPL Financial. Reuters
The Fed remains a brake on the market. While major central banks kept rates steady this week, Reuters noted the Fed’s call was unusually close: an 8-4 split, the tightest in decades. Three dissented over the dovish tilt in the statement; one pushed for a cut outright. Traders are now pricing out any cuts for 2026, and some are eyeing a possible hike at the start of 2027.
Next week ups the stakes, with over 100 S&P 500 firms set to post results—names like Palantir, Walt Disney, McDonald’s, and Advanced Micro Devices among them. Michael O’Rourke, chief market strategist at JonesTrading, called out AMD and other semiconductor stocks, saying, “this is the group that is dominating the tape and dominating the market.” Reuters
Jobs data might end up steering sentiment one way or another. Reuters’ survey of economists points to April’s payrolls report—coming May 8—posting a 60,000 job increase, well off the 178,000 added in March. “It’s a slow job market, but the job market is still hanging in there,” Buchbinder said. Reuters
The old “sell in May” line keeps showing up in market conversations, but it’s hardly a clear signal these days. S&P 500 returns between May and October have averaged just 2% since 1945, well under the 7% seen from November through April. Reuters does point out, though, that the last ten years have been different. “You hate to say to ignore ‘sell in May, go away’ … but it hasn’t worked at all in the last decade,” Detrick said. Reuters
