BY EMMANUEL OGBONNA
U.S. stocks advanced on Friday, extending a powerful rally that has carried major indexes to fresh record levels, as a wave of stronger-than-expected corporate earnings and easing energy prices combined to bolster investor sentiment during a period of global economic uncertainty.
The S&P 500 rose 0.6%, building on the all-time high it reached a day earlier, while the Nasdaq Composite climbed 1.1% to set another record of its own. The Dow Jones Industrial Average, by contrast, was little changed, slipping 17 points, or less than 0.1%, in afternoon trading.
Gains were led by major technology and consumer companies, with Apple emerging as the single biggest driver of market momentum. Shares of the iPhone maker surged 3.5% after the company reported quarterly profit and revenue that exceeded Wall Street forecasts. Given Apple’s enormous market capitalization, its advance had an outsized impact on the broader market, particularly the S&P 500.
The latest earnings season has reinforced a key pillar supporting the stock market’s upward trajectory: robust corporate profitability. Historically, stock prices tend to track earnings growth over time, and early results for 2026 suggest companies are continuing to outperform expectations despite lingering macroeconomic headwinds.
With just over a quarter of S&P 500 companies having reported results so far, roughly 84% have surpassed analysts’ estimates, according to data from FactSet. The index is now on pace to deliver approximately 15% year-over-year earnings growth for the first quarter, a figure that has surprised many investors who had braced for a slowdown amid geopolitical tensions and higher input costs.
Consumer-focused companies also contributed to the market’s strength. Estée Lauder saw its shares rise 3% after posting better-than-expected earnings, supported in part by resilient demand in China. The company also raised portions of its forward guidance, signaling confidence in its near-term outlook.
Meanwhile, Colgate-Palmolive gained 2% after delivering results that topped forecasts. However, CEO Noel Wallace cautioned that the company still expects “volatile macroeconomic conditions and slower category growth” to persist through 2026, underscoring the uneven nature of the global recovery.
Beyond corporate earnings, developments in energy markets played a significant role in shaping investor sentiment. Oil prices, which have been highly volatile in recent weeks due to the ongoing conflict involving Iran, declined on Friday, offering some relief to markets concerned about inflation and economic disruption.
The price of Brent crude fell 2.6% to $107.52 per barrel, paring its weekly gains to around 9%. The benchmark had traded at just over $70 per barrel prior to the escalation of hostilities in late February, highlighting the magnitude of the recent surge.
Energy markets have been particularly sensitive to the status of the Strait of Hormuz, a critical shipping route for global oil supplies. Fears that the waterway could remain closed for an extended period have driven sharp price increases, though those gains have repeatedly reversed amid shifting expectations about a potential reopening.
The earlier spike in oil prices helped boost quarterly profits for major U.S. energy producers, including Exxon Mobil and Chevron. However, both companies saw their share prices decline on Friday—down 1.3% and 1.5%, respectively—as oil prices retreated and each reported year-over-year drops in net income.
Lower oil prices also contributed to a decline in U.S. Treasury yields, easing borrowing costs and providing additional support for equities. The yield on the 10-year Treasury note fell to 4.38% from 4.40% a day earlier, following a report indicating that U.S. manufacturing growth slowed slightly more than economists had anticipated.
Falling yields can have a broad impact across financial markets, often making mortgages and business loans more affordable while simultaneously increasing the relative attractiveness of stocks and other risk assets.
Trading volumes were lighter than usual globally due to the May Day holiday, which saw many international markets closed. Among those that remained open, Japan’s Nikkei 225 rose 0.4%, while the FTSE 100 in London edged down 0.1%.
Despite the mixed performance overseas, the overall tone in global markets remained cautiously optimistic, with investors balancing strong corporate earnings against ongoing geopolitical risks and uncertainty surrounding energy prices.
As the earnings season continues and developments in the Middle East evolve, market participants are likely to remain focused on whether the current momentum in profits and easing inflation pressures can sustain the stock market’s record-setting run.