May 4, 2026 — The S&P 500 and Nasdaq 100 closed at all-time highs on Friday, driven by a wave of strong corporate earnings reports. The S&P 500 rose 0.29%, while the Nasdaq 100 gained 0.94%. The Dow Jones Industrial Average slipped 0.31%.
June E-mini S&P futures added 0.19%, and June E-mini Nasdaq futures climbed 0.85%.
Also read: S&P 500, Nasdaq 100 Hit Records on Earnings
Earnings Fuel the Rally
Apple (AAPL) surged more than 3% after reporting Q2 revenue of $111.18 billion, above the consensus estimate of $109.66 billion. The company forecast Q3 revenue growth of 14% to 17%, far exceeding the 9.1% analysts had predicted.
Atlassian (TEAM) led software stocks higher, jumping over 29% after posting Q3 revenue of $1.79 billion, topping the $1.69 billion consensus. Oracle (ORCL) and Datadog (DDOG) each rose more than 6%, while Salesforce (CRM) added over 4%.
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SanDisk (SNDK) gained more than 8% after reporting Q3 revenue of $5.95 billion, well above the $4.72 billion analysts expected. Seagate Technology (STX) rose over 7%, and Intel (INTC) climbed more than 5%.
Twilio (TWLO) jumped over 23% after reporting Q1 revenue of $1.41 billion, above the $1.34 billion consensus. The company raised its full-year organic revenue forecast to 9.5%–10.5%, stronger than the 8.7% analysts had projected.
Reddit (RDDT) rose more than 12% after reporting Q2 adjusted EBITDA of $266.0 million, beating the $221.3 million consensus.
Overall, 82% of the 317 S&P 500 companies that reported Q1 earnings have beaten estimates. Q1 S&P 500 earnings are projected to climb 12% year-over-year, according to Bloomberg Intelligence. Excluding the technology sector, Q1 earnings are expected to rise about 3%, the weakest in two years.
ISM Data and Trade Tensions Cap Gains
Stocks pulled back from their best levels after the April ISM manufacturing index came in at 52.7, unchanged from March and below the 53.2 economists had expected. The prices paid sub-index rose 6.3 points to 84.6, a four-year high, signaling mounting price pressures.
Trade tensions resurfaced when President Trump threatened to raise tariffs on European automobile imports to as high as 25%, claiming the EU had not fully complied with a trade agreement.
Crude oil prices fell more than 3% on hopes that negotiations to end the US-Iran war would resume. Iranian Foreign Minister Abbas Araghchi said Iran is ready to continue diplomatic efforts if the US changes its approach. The Strait of Hormuz remains essentially closed, disrupting about a fifth of the world’s oil and LNG transit. Goldman Sachs estimates the disruption has drawn down nearly 500 million barrels from global crude stockpiles, with the drawdown potentially reaching 1 billion barrels by June.
Interest Rates Steady
June 10-year T-notes closed up 1.5 ticks, with the yield rising 0.5 basis points to 4.376%. The 10-year breakeven inflation rate rose to a 14.5-month high of 2.50% on Friday.
European government bond yields were mixed. The 10-year UK gilt yield fell 4.8 basis points to 4.964%. ECB Governing Council member Joachim Nagel said the ECB will need to raise rates in June if the inflation outlook does not improve markedly. Swaps are pricing in an 89% chance of a 25-basis-point ECB rate hike at the June 11 meeting.
The markets are discounting an 8% chance of a 25-basis-point FOMC rate cut at the next meeting on June 16-17.
Other Notable Movers
Veeva Systems (VEEV) rose more than 9% after S&P Dow Jones Indices said the company will replace Coterra Energy in the S&P 500, effective May 7.
Paramount Skydance Corp (PSKY) gained over 8% after Morgan Stanley double-upgraded the stock to overweight from underweight with a price target of $14.
Estee Lauder (EL) rose more than 3% after reporting Q3 net sales of $3.71 billion, above the $3.69 billion consensus, and raising its full-year organic net sales forecast to 3%.
Roblox (RBLX) fell more than 18% after reporting Q1 daily active users of 132 million, below the 143.8 million consensus.
Clorox (CLX) dropped more than 9% after cutting its full-year adjusted EPS forecast to $5.45–$5.65, below the $5.92 consensus.
Stryker (SYK) declined more than 6% after reporting Q1 net sales of $6.02 billion, below the $6.33 billion consensus.
Amgen (AMGN) fell more than 4% after reporting Q1 product sales of $8.22 billion, slightly below the $8.23 billion consensus.
Alaska Air Group (ALK) fell more than 1% after Citigroup double-downgraded the stock to sell from buy with a $32 price target, citing exposure to rising fuel costs.
What’s Next
Earnings season continues Monday with reports from Palantir Technologies, Vertex Pharmaceuticals, and Tyson Foods. Investors will also watch for any developments in US-Iran negotiations and trade policy.
This article was produced with AI assistance and reviewed by our editorial team for accuracy and quality.
