At midday, the S&P 500 (SNPINDEX:^GSPC) rose 0.64% to 7,254.82, the Nasdaq Composite (NASDAQINDEX:^IXIC) gained 1.07% to 25,163.49, and the Dow Jones Industrial Average (DJINDICES:^DJI) added 0.04% to 49,668.01 as indexes extended April’s record‑setting momentum.
Market movers
Apple (NASDAQ:AAPL) jumped after topping Q2 estimates and issuing upbeat commentary, powering fresh highs for tech benchmarks. Moderna (NASDAQ:MRNA) slipped on mixed earnings, while AIG (NYSE:AIG) gained after beating analyst expectations. Gaming platform Roblox (NYSE:RBLX) tumbled 17% on a revenue miss. It slashed its full-year forecast as child-protection safeguards impact its user numbers.
What this means for investors
Markets continued to rise this morning, largely driven by resilience in tech stocks. April was the best month for the S&P 500 and Nasdaq since 2020, as strong earnings and optimism about artificial intelligence (AI) outweighed concerns about elevated oil prices and the conflict in Iran.
However, several commentators are sounding the alarm. Last week, the Bank of England deputy governor said markets were overly complacent about current risk levels. Today, Moody’s top economist, Mark Zandi, said valuations could be diverging from economic reality.
As oil prices continue to rise due to ongoing restrictions in the Strait of Hormuz, investors are trying to evaluate the degree to which the disruption is bleeding into the wider economy. In that context, yesterday’s news that U.S. GDP had grown by 2.0% signalled expansion despite inflationary and conflict pressures. Consumer spending slowed, but remained solid. Investors can expect further sector-specific volatility and uncertainty as market rallies continue to defy commentators’ caution.
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