By Jack Pitcher
Stocks' stellar war-defying run continued on Friday.
The S&P 500 and Nasdaq closed at fresh records after Iran handed Washington a new proposal for ending the war, offering hints of compromise. The two sides remain far apart, The Wall Street Journal reported, but investors nonetheless took it as an encouraging sign, sending Brent crude oil futures down 2% to $108.17 a barrel.
The S&P 500 closed higher for a fifth consecutive week, the longest streak since 2024, and is now up 14% over the past month. Cease-fire hopes helped kick off the rally, and artificial-intelligence speculation, soaring tech stocks and some positive economic data points have extended it.
"Bears have largely capitulated," said Mark Hackett, chief markets strategist at Nationwide.
Tech led the way again on Friday. A strong earnings report lifted Apple 3.3% higher. The iPhone maker's sales surged, beating Wall Street's expectations, and might have been even better if not for the constrained supply of advanced chips that power its devices, executives said on a call with analysts.
That shortage is fueling a powerful rally in chip and memory stocks this year. Intel was among this week's best performers, adding 21% to extend its year-to-date gain to 170%. Qualcomm and Sandisk also posted double-digit weekly gains.
Analysts have also been pointing to signs of an economic acceleration in companies' first quarter results, which have been broadly strong. New data Friday showed factory activity expanded in the U.S. in April even as price pressures rose from the war.
"Tech is leading the way, but earnings growth is broadening, supported by resilient consumer spending and signs of a cyclical upswing," Ulrike Hoffmann-Burchardi, global head of equities at UBS Global Wealth Management, wrote in a Friday research note.
S&P 500 companies have so far exceeded first quarter earnings estimates in aggregate by 21%, well above the five-year average of 7.3%, according to FactSet. First quarter earnings growth has averaged 27%, the highest level since 2021.
It wasn't all rosy news on Friday. Investors who had been betting on a government-backed deal to save Spirit Airlines are now facing big losses. Shares of Spirit Aviation dropped about 60% over-the-counter to less than 60 cents after Journal reported that the ailing budget airline is preparing to cease operations.
Write to Jack Pitcher at jack.pitcher@wsj.com
(END) Dow Jones Newswires
May 01, 2026 16:37 ET (20:37 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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