U.S. stocks finished higher on Friday, with the S&P 500 and the Nasdaq Composite both closing at new highs after a stronger-than-expected earnings update from Apple helped underpin the advance. Oil prices eased as the calendar turned to a new month.
The S&P 500 rose 0.29% to end the session at 7,230.12, while the Nasdaq gained 0.89% to close at 25,114.44. The Dow Jones Industrial Average moved in the opposite direction, falling 153 points, or 0.31%, to finish at 49,499.27.
Shares of Apple climbed more than 3% following the company’s fiscal second-quarter report, which showed both earnings and revenue ahead of analyst expectations. Apple also issued a revenue outlook for the current quarter that was stronger than many had anticipated, helping to offset a shortfall in iPhone revenue - the second miss in three quarters.
Friday’s results built on a recent stretch of record activity: the S&P 500 had already crossed the 7,200 mark earlier, and for the month both the S&P 500 and the Nasdaq delivered their best monthly performances since 2020. The Dow posted its strongest monthly gain since November 2024.
Investors are entering a busy week for corporate reporting and macro data. More than 100 members of the S&P 500 are scheduled to release first-quarter results in the coming days, and the April nonfarm payrolls (NFP) report will be watched closely for signs about the durability of the economic expansion and labour-market strength.
Bank of America economists offered a specific near-term outlook on the labour report, saying: "After job growth came in above all expectations in March, we look for April NFP to print at a solid 80k (private: 90k), which would be comfortably above breakeven. Risks are tilted to the upside, with claims remaining benign and the weekly ADP data inflecting upwards. We expect the u-rate to remain at 4.3%, with LFPR unchanged at 61.9%."
The jobs data follow a Federal Reserve meeting last week that revealed more division among policy makers than markets had priced in. According to the report of the meeting, three board members pushed back on policy language they felt did not adequately acknowledge inflation risks that might justify a rate increase.
Separately, a report released Thursday showed the U.S. economy expanded at a faster pace in the first quarter, with business investment in equipment lifted by strong spending tied to artificial intelligence projects. That backdrop has supported corporate investment and helped underpin parts of the market rally.
Earnings season is entering a particularly active phase. As of Friday, first-quarter profits for the S&P 500 were on track to rise 27.8% from a year earlier, citing LSEG Data & Analytics via Reuters - a pace that, if realized, would be the strongest profit growth since the fourth quarter of 2021.
Among the higher-profile companies set to report in the coming days are Palantir, Walt Disney and McDonald’s. Chipmaker Advanced Micro Devices will draw attention after sharp gains in its shares and in other semiconductor stocks. Additional names on the schedule include Pfizer, Strategy, Arm Holdings and CoreWeave.
Analysts offered differing takes on where U.S. equities may go from here.
Evercore ISI: "Remain fully invested, tilted to large cap tech as NDX multiples remain attractive vs SPX, Tech has outperformed off the 3/30 trough; Info Tech and Comm Svcs are the only two sectors to outperform since the “AI Revolution” Bull began. As in 1999, the sectors which led the Structural Bull are set to do so again in 2026. Yet unseen “full on FOMO chase” consistent with prior peaks, could catalyze an overshoot to SPX 9,000 Bull Case Some of the most explosive price action lies ahead as Generational IPOs could further rouse the Animal Spirits."
RBC Capital Markets: "Our analysis suggests that there is still some room for the broader U.S. equity market to run before the highs that ended up being a ceiling are seen again. The bottom-up market cap weighted S&P 500 NTM P/E is trading a bit above 25x, still well below its high of more than 28x seen last year."
Morgan Stanley: "Equity index returns are historically strong (mid-teens range) over a 12-month period when the Fed is on hold and earnings growth is above the long-term median (8%). Index upside is only slightly stronger (high-teens range) when the Fed is cutting and earnings growth is above the long-term median. The bottom line is that a strong earnings backdrop, which we expect over the next 12 months, is the main driver of upside in both outcomes. The near-term risk from the Fed is more related to liquidity tightness if they were to underestimate how much capital the real economy is now using for investment and the rolling recovery. Markets could periodically reflect this risk via higher bond volatility and/or tension in funding markets. A stronger dollar could also play a role in this dynamic."
For market participants focused on sectors and company fundamentals, the week's developments will offer fresh information about demand patterns, pricing power and margin dynamics. Technology names have led recent gains, semiconductor stocks are sensitive to inventory and demand signals, and consumer-facing companies scheduled to report will provide data points on consumption, pricing and cost pass-through.
Looking ahead, investors will weigh the incoming corporate reports and the April jobs numbers against persistent uncertainties: elevated oil prices, signs of Fed dissent on policy direction, and the potential for further shifts in business investment trends as firms allocate capital to AI-related projects.
Summary: U.S. stocks rose on Friday with the S&P 500 and Nasdaq closing at record highs after Apple beat estimates and raised its revenue outlook. The Dow fell. Markets now face a busy week of earnings - more than 100 S&P 500 companies - and a key employment report. Fed divisions and oil price movements add to the uncertainty.
- Key points:
- Major indexes: S&P 500 +0.29% to 7,230.12; Nasdaq +0.89% to 25,114.44; Dow -0.31% to 49,499.27.
- Apple's fiscal Q2 beat and stronger revenue outlook helped lift sentiment despite a second-quarter iPhone revenue miss in three quarters.
- Earnings calendar intensifies - more than 100 S&P 500 companies reporting this week; first-quarter index earnings on track to rise 27.8% year-over-year.
- Risks and uncertainties:
- Federal Reserve divisions on policy language create uncertainty about future rate moves, which could affect liquidity and bond volatility - impacting the broad equity market.
- Elevated oil prices add an element of macro uncertainty that can influence inflation dynamics and costs for energy-intensive sectors.
- Near-term upside risk in the jobs report could alter recession or policy expectations if payrolls significantly outpace current forecasts, with implications for interest-rate sensitive sectors.