US Stock Market Today: Wall Street Gains as Falling Oil Prices Support Stocks After Record April Run

Wall Street opened May with fresh gains on Friday as strong earnings and easing oil concerns helped extend April’s powerful rebound. The Dow Jones Industrial Average, S&P 500, and NASDAQ Composite moved higher at the open after major indexes closed the prior month with their strongest gains in years.

The rally came as investors balanced record stock levels against risks from energy markets, bond yields, and labor data. Apple’s results supported technology shares, while lower crude prices eased pressure after weeks of Middle East supply concerns.

Stocks Extend Rally After Strong April Gains

The Dow Jones Industrial Average rose 180.4 points, or 0.36%, at the open to 49,832.57. The S&P 500 gained 25.5 points, or 0.35%, to 7,234.54. The NASDAQ Composite advanced 85.5 points, or 0.34%, to 24,977.79.

The early gains followed a record-setting session on Thursday, when the S&P 500 closed above 7,200 for the first time. The S&P 500 gained more than 10% in April, while the NASDAQ rose more than 15%, marking their strongest monthly moves since 2020.

However, analysts pointed to a possible pause after the sharp rebound. Angelo Kourkafas, senior global investment strategist at Edward Jones, said, “We have these fast-rising profits on one side, and then on the other, we have upward pressures on oil prices and bond yields.” He added that stocks may enter a consolidation.

Apple Gains Support Market Sentiment

Apple shares rose more than 4% after the company reported fiscal second-quarter earnings and revenue above market estimates. The company also issued a better-than-expected revenue outlook for the quarter, which helped offset weaker-than-expected iPhone revenue.

The gain in Apple supported the S&P 500 and NASDAQ, as large technology stocks remained a key market driver. The S&P 500 rose about 0.5% in early trading, while the NASDAQ Composite gained 0.7%. The Dow added more than 100 points.

Investors continued assessing mixed earnings reactions from other megacap technology companies. Alphabet shares gained after strong cloud-computing growth, while Microsoft and Meta Platforms declined after results drew a weaker market response.

Oil Prices Ease, But Risks Remain

Oil prices fell on Friday after reports said Iran had sent a response through Pakistani mediators to the latest US amendments to a draft agreement aimed at ending the Middle East conflict. US West Texas Intermediate crude fell about 3% to around $102 a barrel. Brent crude slipped near $108 to $110 a barrel.

The pullback eased pressure on equities after Brent recently topped $120 and reached a four-year high. Energy prices remain a key concern because the US-Israeli war with Iran has disrupted oil supply and kept traders focused on regional developments.

Jeff Buchbinder, chief equity strategist at LPL Financial, warned that risk could rise if high oil prices persist. He said, “With each passing day, the economic risk grows.” He added that a longer period with Brent above $120 and continued conflict would create a different setup.

Earnings and Jobs Data Set Next Test

More than 100 S&P 500 companies are scheduled to report results next week. Palantir, Walt Disney, McDonald’s, and Advanced Micro Devices are among the watched names.

AMD will draw attention after a sharp rally in semiconductor shares. Michael O’Rourke, chief market strategist at JonesTrading, said the chip group is “dominating the tape and dominating the market.” He noted that fresh data points from the sector will remain important.

Investors will also watch the April payrolls report due May 8. Economists polled by Reuters expect 73,000 new jobs, down from 178,000 in March but better than February’s decline.

The jobs report will arrive after a hawkish Federal Reserve meeting. Three Fed board members objected to the statement language they believed did not fully reflect inflation risks. That shift, along with oil price pressure, pushed the 10-year Treasury yield near 4.4%.

Higher yields could pressure stock valuations if they continue to rise. Kourkafas said, “The 10-year above 4.5% will certainly catch more investors’ attention.” He said investors could rethink valuations if borrowing costs climb further.

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