U.S. markets closed on May 1 with the Nasdaq and S&P reaching new all-time highs, while the S&P 500 recorded its strongest monthly performance since 2000. Among the top 20 stocks by trading volume, Meta Platforms saw investor concern after increasing its capital expenditure outlook. Popular U.S.-listed Chinese stocks generally rose, with Beike climbing 7%, though WSP Holdings fell 3.26%. In commodities, Brent crude retreated from a four-year peak as war worries limited market liquidity. European markets finished April up 4.8%, marking their best monthly gain in over a year.
On the macro front, former President Trump claimed he had "destroyed" Iran’s nuclear capabilities, with few aware of actual negotiation progress. He also suggested possible troop reductions in Spain and Italy, expressing dissatisfaction with European allies. Trump signed a bill to end the Department of Homeland Security shutdown and criticized Congress for limiting his war powers. In a gesture honoring the British king and queen, he announced plans to eliminate certain whiskey tariffs. Reports indicate Trump will sign an executive order expanding retirement savings plan coverage. Defense officials noted the 60-day deadline for military action against Iran has been "paused" due to ceasefire efforts. A U.S. official estimated the cost of conflict with Iran could reach $50 billion, double the disclosed figure. The House Speaker stated the U.S. is "not in a state of war." Iran claimed 40% of its trade could shift to land routes, with its president saying trust in the U.S. is completely lost and describing maritime blockades as an extension of military action. The EU rejected a U.S. proposal to resolve metal tariff disputes and is considering countermeasures. A European Central Bank official signaled a potential June rate hike if energy prices don't decline. France maintained its growth forecast despite first-quarter stagnation. Foreign ministers from 11 countries issued a joint statement condemning Israel's attack on the "Global Resilience Flotilla."
Corporate highlights included Apple reporting better-than-expected Q2 results: revenue rose 17% to $111.2 billion, R&D spending surged 33%, and sales in China jumped 28%. Strong quarterly guidance suggests Apple may overcome supply shortages. Meta issued $25 billion in bonds, with investors showing signs of fatigue. Mercuria sued the Baltic Exchange, alleging distortion in Middle East crude freight benchmarks caused significant losses. The FCC chair publicly denied White House pressure to investigate Disney. Elon Musk testified in court that he did not read the "fine print" when OpenAI transitioned to a for-profit model. The NSA tested the Mythos model and was reportedly impressed by its capabilities.
In commentary, S&P is considering rule changes that could speed up the inclusion of companies like SpaceX in the S&P 500. Emerging market equities posted their best monthly performance since 2022, driven by AI enthusiasm and oil price risks. U.S. Treasuries rose alongside European bonds, supported by falling oil prices and a surging yen. Goldman Sachs equity research head Covello recommended buying hyperscale cloud providers over chip stocks. Bill Ackman pointed to retail trading as the cause of sharp intraday declines in a new closed-end fund. OPEC+ representatives expect another symbolic production increase in June. Bank of England Governor Bailey described the combination of soaring energy prices as the central bank's most challenging dilemma. The ECB held rates steady, with President Lagarde signaling a potential rate hike consideration in June.
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