Wall Street capped a strong week with fresh all-time highs on Friday, as upbeat earnings from Apple and hopes for a resolution to the U.S.-Iran conflict helped push major indexes higher for a fifth consecutive week.
The Nasdaq led the way, surpassing the 25,000 level and closing at 25,114.44, a new record. The S&P 500 also advanced, closing at 7,230.12, while the Dow Jones Industrial Average slipped 152.87 points to settle at 49,499.27.
For the week, the S&P 500 climbed 0.9%, the Dow gained 0.5%, and the Nasdaq rose 1.1%.
The S&P 500 and Nasdaq in April had their best months since 2020, with the broader market posting 10% gains for the month — its best performance in five years.
Apple was the week’s standout story, with shares climbing more than 3% after the company posted a fiscal second-quarter earnings and revenue beat. Apple’s revenue outlook for the current quarter was better than expected, overshadowing the fact that iPhone revenue fell short of estimates for the second time in three quarters.
On the economic front, the Commerce Department’s initial estimate for first-quarter 2026 GDP showed the economy expanded at a seasonally adjusted annual rate of 2.0%, an acceleration from 0.5% in the fourth quarter of 2025. Growth was supported by consumer spending and a pickup in investment. However, inflation pressures intensified, with the PCE price index climbing to 4.5% and core PCE reaching 4.3%.
The Federal Reserve held its target range for the federal funds rate at 3.5% to 3.75% in an 8-4 vote, with one member favoring an immediate cut and three opposing the statement’s continued easing bias. Chair Jerome Powell emphasized that despite hawkish dissenters and sticky inflation data, raising rates is currently off the table.
Oil prices remained a concern, with Brent Crude touching $126.41 before settling at $114.01, and WTI Crude falling to $105.07, after climbing to four-year highs amid fears of potential U.S.-Iran military escalation disrupting Middle East supply. Markets were lifted Friday by reports that Iran sent a new proposal for talks with the U.S. via Pakistani mediators.
One theme reinforced this week is that AI capital spending is not slowing, with outlays expected to approach $700 billion in 2026. Markets rewarded AI spending that shows near-term monetization, as seen with Alphabet, while punishing spending without clear incremental returns, a criticism directed at Meta Platforms following its results.
Looking ahead, investors will watch Friday’s April jobs report, with economists expecting the U.S. economy to have added just 50,000 jobs, far below the prior reading of 178,000, while the unemployment rate is expected to hold steady at 4.3%.
By DNU staff