US stocks are positioned for another week of potential gains driven by earnings reports and employment data, despite rising oil prices and a more hawkish Federal Reserve. According to Reuters, major US stock indexes reached record-high levels on Thursday, following a sharp month-long rebound from concerns about economic fallout from the Middle East war. The S&P 500 rose more than 10% for April, while the Nasdaq jumped over 15%, marking their biggest monthly gains since 2020. Latest market data shows Cboe Global Markets leading S&P 500 gains at 8.95%, with Seagate Technology and Oracle also posting strong gains of 7.91% and 6.47% respectively. The S&P 500 closed Friday at 7,230.12, while the Nasdaq reached an all-time high of 25,114.44, with both indexes posting their strongest monthly performances since 2020.
Stocks this week largely shrugged off a renewed surge in oil prices with benchmark Brent crude firmed 0.8% to $111.3 a barrel, according to The Economic Times. As reported by Reuters, energy markets were poised to swing on developments in the two-month US-Israeli war with Iran, which has choked off a major supply of oil. However, oil prices fell Friday after Iran reportedly sent its response through Pakistani mediators to the latest U.S. amendments to a draft agreement to end the Middle East conflict. President Donald Trump revealed later Friday he is displeased with a new peace offer from Iran, saying that the country "wants to make a deal, but I'm not satisfied with it." U.S. West Texas Intermediate crude futures fell 2.98% to settle at $101.94 a barrel, while international benchmark Brent crude futures slid 2.02% to $108.17 a barrel. Oil majors ExxonMobil and Chevron both saw Q1 earnings per share drop from the same quarter last year, as mistimed oil price hedges affected by the war blocked major swaths of global energy flows.
Apple (AAPL) may help lead an extended advance on Wall Street, as the tech giant is surging by 3.6% in pre-market trading following better-than-expected fiscal second quarter results. The jump comes after the company reported earnings and revenue that beat analyst estimates, with earnings coming in at $2.01 per share while revenue landed at $111.18 billion. Apple shares climbed more than 3% after the consumer tech giant posted a fiscal second-quarter earnings and revenue beat, with the strong pre-market performance indicating continued momentum from the previous session's gains. Roku popped 7% after posting first-quarter revenue of $1.25 billion, beating the expected $1.20 billion, while Estee Lauder shares rose more than 11% after reporting better-than-expected third quarter sales with earnings of $0.91 per share and $3.71 billion in revenue.
This week's Federal Reserve meeting revealed a surprisingly divided US central bank, as three board members objected to language in the Fed's policy statement they felt did not take adequate account of inflation risks that might require a rate hike. As reported by Reuters, that hawkish turn, combined with surging oil prices, pushed benchmark US Treasury yields to one-month highs, with the 10-year Treasury yield last around 4.4%. However, latest data shows U.S. 10-year Treasury yields up 8 basis points on the week at 4.390%, but off a top of 4.436%. The pivot left markets giving up hope for a rate cut there this year, with European Central Bank President Christine Lagarde noting that board members were debating whether to increase rates.
The payrolls report for April, due on May 8, is expected to show growth of 73,000 jobs, according to economists polled by Reuters. This would be a step down from the 178,000 added in March, but an improvement over the sharp employment decline in February. According to LPL Financial, "It's a slow job market, but the job market is still hanging in there." Data on Thursday showed US economic growth picked up in the first quarter, as the AI spending boom helped to lift business investment in equipment. Global shares clocked their biggest monthly rise since 2020 in April, buoyed by earnings optimism even as oil flows remain disrupted through the vital Strait of Hormuz.
