US Stock Markets Register Weekly Gains Despite Earnings-Driven Volatility

Stock Market Hits Record Closing Highs as Earnings Boost S&P 500 and Nasdaq

The S&P 500 and the Nasdaq Composite advanced to record closing highs on Friday, driven by robust earnings and a dip in crude prices, marking the biggest monthly percentage gains in years. The S&P 500 joined the Nasdaq in positive territory, with tech strength propelling the latter to the forefront. Both indexes logged their sixth consecutive weekly advances, their longest run of weekly gains since October 2024.

The blue-chip Dow Jones Industrial Average, however, ended the session modestly lower. As May begins, the stock market enters a historically weak six-month stretch. From 1945 through April 2026, the S&P 500 has gained an average of about 2% from May to October, according to data from Fidelity. This compares with an average gain of about 7% from November through April.

Corporate earnings played a significant role in the market's performance, with reporting companies accounting for more than two-fifths of the S&P 500's total market capitalization. Analysts now see aggregate first-quarter earnings growth of 27.8%, year-on-year, according to LSEG I/B/E/S. This represents an 11.7 percentage point increase from the previous week's estimate, marking the biggest earnings growth since the fourth quarter of 2021.

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Of the 314 companies that have posted results, 83% have beaten earnings estimates, and 78% reported better-than-expected revenue, according to LSEG. The Magnificent Seven group of artificial intelligence-related stocks saw five companies report this week, with investors paying close attention to the timing and extent to which huge investments in the nascent technology are starting to pay off.

Earnings Growth by the Numbers

The S&P 500 posted a gain of 21.11 points, or 0.29%, to 7,230.12, while the Nasdaq Composite gained 222.13 points, or 0.89%, to 25,114.44. The Dow Jones Industrial Average fell 152.87 points, or 0.31%, to 49,499.27. Among the 11 major sectors in the S&P 500, technology stocks enjoyed the biggest percentage gains, while energy shares dropped the most.

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Apple shares advanced 3.3% after the company provided a solid sales forecast, touting strong demand for its flagship iPhone 17 and the MacBook Neo. Software companies climbed after Atlassian lifted its annual forecast, with the enterprise software maker surging 29.6%. Peers Salesforce and ServiceNow added 4.1% and 3.2%, respectively.

Roblox fell 18.3% following a cut in its annual bookings forecast, while Reddit jumped 13.1% after an upbeat quarterly revenue forecast. Exxon Mobil's quarterly profit was hit by Middle East disruptions, while Chevron beat earnings expectations but overall profit marked its lowest level in five years. The supermajors dipped 1.0% and 1.4%, respectively.

Advancing issues outnumbered decliners by a 1.18-to-1 ratio on the NYSE, with 578 new highs and 63 new lows. On the Nasdaq, 2,957 stocks rose and 1,753 fell as advancing issues outnumbered decliners by a 1.69-to-1 ratio. The S&P 500 posted 45 new 52-week highs and 13 new lows, while the Nasdaq Composite recorded 132 new highs and 51 new lows.

Volume on U.S. exchanges was 15.27 billion shares, compared with the 17.64 billion average for the full session over the last 20 trading days.