U.S. stocks ended higher on Friday, with the S&P 500 and the Nasdaq ending at new all-time closing highs as oil prices eased and robust earnings lifted investors’ sentiment. However, the Dow ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 0.3% or 152.87 points, to close at 49,499.27 points.
The S&P 500 rose 0.3%, or 21.11 points, to end at 7,230.12 points. Tech and consumer discretionary stocks were the biggest gainers.
The Information Technology Select Sector SPDR (XLK) gained 1.5%. The Consumer Discretionary Select Sector SPDR (XLY) rose 0.2%. The Energy Select Sector SPDR (XLV) declined 1.3%. Eight of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq added 0.9%, or 222.13 points, to finish at 25,114.44 points.
The fear gauge, CBOE Volatility Index (VIX), was up 0.59% to 16.99. Advancers outnumbered decliners on the NYSE by a 1.18-to-1 ratio. On the Nasdaq, a 1.69-1 ratio favored advancing issues. A total of 15.27 billion shares were traded on Friday, lower than the last 20-session average of 17.64 billion.
On the NYSE, there were 578 new 52-week highs and 63 new lows. On the Nasdaq, there were 132 new highs and 51 new lows. On the S&P 500, there were 45 new 52-week highs and 13 new lows.
Uncertainty Over Iran War Continues
Stocks rallied on Friday to start a new month on a high. The S&P 500 and the Nasdaq closed at new all-time highs after recording their biggest monthly percentage gains in April. However, May also marks the beginning of a historically weak six-month stretch for stock markets. The S&P 500 has gained only an average 2% between May and October since 1945.
Meanwhile, oil prices fell on Friday after Iran sent an amended draft agreement via Pakistani mediators to end the ongoing war with the United States. However, President Donald Trump on Friday said that he is not happy with the amendments made to the draft.
The West Texas Intermediate crude futures fell 2.98% to settle at $101.94 per barrel on Friday.
Robust Earnings Boost Investors’ Sentiment
The first-quarter earnings season is in full swing, and investors have been closely monitoring the quarterly results. A batch of companies from the Magnificent Seven related to AI stocks reported their quarterly results last week.
Friday’s rally was driven by Apple, Inc. (AAPL), after the iPhone-maker posted a beat on both earnings and revenues. Apple reported second-quarter fiscal 2026 earnings of $2.01 per share, up 21.8% year over year and ahead of the Zacks Consensus Estimate by 4.7%.
The iPhone maker posted revenues of $56.99 billion, up 21.7% year over year and setting a new record for the March quarter. Shares of Apple gained 3.2% on Friday. Apple currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
However, shares of oil companies Exxon Mobil Corporation (XOM) and Chevron Corporation (CVX) both fell 1% and 1.4%, respectively, despite beating on earnings. Chevron reported first-quarter 2026 adjusted earnings per share of $1.41, beating the Zacks Consensus Estimate of $0.92 per share.
Exxon reported first-quarter 2026 earnings per share of $1.16, beating the Zacks Consensus Estimate of $1.07 per share.
Economic Data
Economic data released on Friday showed that manufacturing activity continued to expand in April. The ISM reported that its manufacturing PMI remained unchanged at a four-year high of 52.7 in April. However, the reading remained above the 50 level, which ???indicates expansion in the sector.
Weekly Roundup
Both the S&P 500 and the Nasdaq recorded their sixth straight week of gains. The S&P 500 ended the week 0.7% higher, while the Nasdaq was up 1.1% for the week. The Dow rose 0.5% for the week.
Zacks’ Research Chief Names “Stock Most Likely to Double”
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company’s customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
This article originally published on Zacks Investment Research (zacks.com).
This article contains syndicated content. We have not reviewed, approved, or endorsed the content, and may receive compensation for placement of the content on this site. For more information please view the Barchart Disclosure Policy here.
