NEW YORK, May 5, 2026, 13:03 EDT
Tech names did the heavy lifting Tuesday, driving the U.S. stock market higher. Crude oil prices cooled off after Monday’s jump, prompting a swing back into growth stocks. According to LSEG data cited by Reuters, the S&P 500 added 0.83% to 7,260.23, the Nasdaq Composite climbed 1.00% to 25,317.95, and the Dow advanced 0.56% to 49,215.64. Brent crude, meanwhile, slipped 3.31% to $110.65.
The shift matters, with Wall Street juggling both robust corporate earnings and an oil shock linked to the Strait of Hormuz—the major artery for crude shipments. According to AP, the S&P 500 looked set to clear last week’s high. The Nasdaq was moving closer to a record as oil prices reversed a chunk of Monday’s surge.
Scott Wren at Wells Fargo Investment Institute dubbed this a “why ask why” market. Investors, he said, continue to focus on earnings and AI data-center spending, despite risks hanging around. The line matched the session’s mood. Buyers hadn’t dismissed the war, but they weren’t acting like it had derailed the earnings narrative. AP News
Earnings are still doing the heavy lifting for stocks. Of the S&P 500 companies that have posted results, 83% topped profit forecasts, according to S&P Global Market Intelligence figures cited by Reuters. LSEG’s numbers show first-quarter S&P 500 profits rising over 18%—a jump from around 12.8% just a month back. “AI-driven spending will likely continue to do the heavy lifting” when it comes to earnings, said Jeff Buchbinder, chief equity strategist at LPL Financial. Reuters
Economic numbers came in uneven—nothing that would prompt a policy pivot. The Institute for Supply Management’s services PMI, which signals growth above 50, eased to 53.6 in April after a March reading of 54.0. New orders dropped off hard, hiring held in negative territory, and price pressures stuck at 70.7.
The labor market picture looked a bit more balanced. March’s JOLTS report showed job openings dipped by 56,000 to 6.866 million, while hires surged, up 655,000 to 5.554 million. This mix keeps the Federal Reserve cautious on a near-term rate cut.
The Federal Reserve underscored why traders are glued to each oil move and labor figure. Sticking with a 3.5% to 3.75% target for its benchmark overnight rate last week, policymakers cited persistent inflation and flagged “a high level of uncertainty” tied to Middle East events. Federal Reserve
Tech carried the session, with Intel in the spotlight following a Bloomberg News scoop that Apple has had early discussions about tapping both Intel and Samsung Electronics to build its main chips. AMD also grabbed some focus, with investors waiting for its results after the bell. Joe Saluzzi, co-head of equity trading at Themis Trading, didn’t mince words: “You need the earnings to support where you are.” Reuters
This time, gains reached beyond the big tech names. DuPont shares climbed after the company raised its annual profit outlook. Archer-Daniels-Midland jumped on stronger-than-expected first-quarter earnings. Pinterest moved higher too, following its upbeat second-quarter revenue guidance. On both the NYSE and Nasdaq, more stocks advanced than fell, according to Reuters.
The downside risk is still in the picture. Dean Chen, analyst at Bitunix Exchange, pointed to market concerns over “global shipping routes, insurance costs” and the broader supply-chain outlook, beyond just oil’s daily swings. Ongoing trouble in Hormuz could mean higher costs for fuel, freight, and raw materials—a combination that might stir up inflation, keep Treasury yields stubbornly high, and throw up roadblocks for any lasting equity rebound. Investopedia
Carl Weinberg, chief economist at High Frequency Economics, called Tuesday’s JOLTS report a sign of a “steady labor market.” Still, he flagged that this stability faces pressure if oil prices stay above $100, inflation keeps rising, and financial conditions tighten. That’s the lurking risk beneath today’s rebound: oil prices dropped for the session, but remain elevated. AP News
