April 26, 2026 — The S&P 500 and Nasdaq 100 closed at new all-time highs on Friday, driven by a surge in technology stocks and renewed optimism over US-Iran diplomacy. The S&P 500 Index rose 0.80%, while the Nasdaq 100 climbed 1.95%. The Dow Jones Industrial Average slipped 0.16%.
Intel led the charge, jumping more than 23% to a record high after forecasting Q2 revenue of $13.8 billion to $14.8 billion. That range far exceeded analyst expectations of $13.04 billion. The surge reignited investor confidence in the economic potential of artificial intelligence for semiconductor manufacturers.
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Other chipmakers followed. Advanced Micro Devices and ARM Holdings both rose more than 13%. Qualcomm added over 11%. Nvidia gained more than 4%, becoming a top performer in the Dow.
Iran Diplomacy Fuels Market Optimism
Stocks extended gains on news that the US and Iran are moving toward talks. President Trump said he will send two envoys to Pakistan for discussions with Iranian officials. The New York Times reported that Iranian Foreign Minister Abbas Araghchi will meet with a US envoy in Islamabad on Saturday.
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The prospect of de-escalation helped push WTI crude oil prices down more than 1% on Friday. The Strait of Hormuz remains effectively closed, but diplomatic signals suggest a potential easing of tensions. Goldman Sachs estimates that crude output in the Persian Gulf has been curtailed by about 14.5 million barrels per day — more than 50% — so far in April. The disruption has drawn down nearly 500 million barrels from global stockpiles, which could reach 1 billion barrels by June.
Bond Yields Fall on DOJ News
Bond yields declined after the Department of Justice announced it was dropping its investigation into Fed Chair Jerome Powell over cost overruns at the Federal Reserve’s renovation project. The 10-year T-note yield fell 2 basis points to 4.304%.
The DOJ’s decision may clear the path for Senator Thom Tillis to support the confirmation of Kevin Warsh as the next Fed Chair. Tillis had vowed to block Warsh’s appointment unless the investigation was dropped. Speculation suggests Warsh could take a more dovish approach than Powell.
Consumer Sentiment Beats Expectations
Friday’s economic data supported the rally. The University of Michigan’s April consumer sentiment index was revised upward by 2.2 points to 49.8, above the consensus estimate of 48.5. One-year inflation expectations were revised down slightly to 4.7% from 4.8%. The 5-10 year inflation outlook edged up to 3.5%, a six-month high.
Earnings Season Shows Strength
Corporate earnings continued to bolster the market. As of Friday, 80% of the 139 S&P 500 companies that reported first-quarter results have beaten estimates. Overall Q1 earnings are projected to rise 12% year over year, according to Bloomberg Intelligence. Excluding the technology sector, earnings growth drops to roughly 3%, the weakest in two years.
Software stocks also rallied. ServiceNow rose more than 6%. Atlassian and Cadence Design Systems each gained over 5%. Microsoft, Salesforce, Adobe, and Autodesk all closed up more than 2%.
Notable Movers
- Organon & Co. surged more than 32% after reports that Sun Pharma is planning a $13 billion binding offer.
- Chemed Corp rose more than 10% after reporting Q1 adjusted EPS of $5.65, above the $5.30 consensus.
- Hims & Hers Health gained more than 8% after JPMorgan initiated coverage with an overweight rating and $35 price target.
- Edwards Lifesciences rose more than 5% on better-than-expected Q1 adjusted EPS of 78 cents.
- Procter & Gamble added more than 2% after Q3 net sales of $21.24 billion beat the $20.50 billion estimate.
- Charter Communications fell more than 25%, the biggest loser in the S&P 500 and Nasdaq 100, after Q1 EPS of $9.17 missed the $9.52 consensus.
- Comcast dropped more than 12% after a Deutsche Bank downgrade to hold from buy.
- HCA Healthcare declined more than 9% despite Q1 net income of $1.62 billion, just below the $1.63 billion estimate.
Global Markets Mixed
Overseas indexes were mixed. The Euro Stoxx 50 fell to a two-week low, closing down 0.19%. China’s Shanghai Composite slipped 0.33%. Japan’s Nikkei 225 bucked the trend, rising 0.97%.
European government bond yields also fell. The 10-year German bund yield dropped 1.5 basis points to 2.994%. The 10-year UK gilt yield declined 2.7 basis points to 4.912% after hitting a four-week high earlier.
The German IFO business confidence index fell to 84.4 in April, its lowest in nearly six years and below the 85.7 consensus. ECB Governing Council member Peter Kazimir said the conflict in Iran might require a slight increase in ECB interest rates.
Swaps currently price a 9% chance of a 25-basis-point ECB rate hike at the April 30 meeting. The Federal Reserve’s next policy decision is set for April 28-29, with markets discounting only a 1% probability of a rate increase.
Data sourced from Barchart. On the date of publication, Rich Asplund did not hold positions in any securities mentioned.
This article was produced with AI assistance and reviewed by our editorial team for accuracy and quality.
