Nasdaq, S&P 500 close at record highs as AI trade extends Wall Street rally

4:20pm: AI trade stays strong

Wall Street wrapped up Friday on a strong note, with the S&P 500 and Nasdaq hitting fresh record highs as upbeat tech earnings reassured investors that the AI-driven rally still has plenty of momentum.

The S&P 500 climbed 0.3% to close at 7,230, while the Nasdaq surged 0.9% to 25,114, both finishing at new all-time highs. The Dow, however, slipped 0.3% to 49,499.

Stocks also capped off their best month since 2020, as investors continued piling into major technology names following another round of strong earnings reports.

Much of the attention remained on the “Magnificent Seven” megacap stocks, which ended the week mixed. Alphabet, Apple, and Tesla stood out as the biggest winners.

The move higher suggests the AI trade is still very much alive, with strong demand for chips, cloud services, and data center investments continuing to support the broader market.

Looking ahead, investors will be watching upcoming economic data and signals from the Federal Reserve to see whether the rally can keep running into August.

3:40pm: Proactive news headlines

• Thistle Resources (TSX-V:TRCG) completed its qualifying transaction and resumed trading on the TSX Venture Exchange as a Tier 2 mining issuer after acquiring Thistle Resources Corp. through a three-cornered amalgamation.
• Replenish Nutrients Holding Corp (CSE:ERTH, OTC:VVIVF, FRA:7KE) reported higher fourth-quarter revenue driven by stronger fertilizer sales, while continuing to post net losses as it advances commercialization of its regenerative fertilizer platform.
• Shield Therapeutics PLC (AIM:STX, OTCQB:SHIEF) shares fell after the company posted stronger first-quarter revenue and positive EBIT but warned of potential US market headwinds and announced the departure of its finance chief.
• Union Jack Oil PLC (AIM:UJO, OTCQB:UJOGF, FRA:1UJ0) said drilling at the Crossroads Well in Southern Oklahoma has been delayed as the rig remains under maintenance, with an updated spud date expected in early May.

2:40pm: Market movers

• Spirit Airlines is preparing for a potential shutdown after failing to secure a proposed $500 million emergency funding package aimed at stabilizing its finances and maintaining operations.
• Estee Lauder Companies Inc (NYSE:EL, XETRA:ELAA) posted better-than-expected third-quarter results, raised its full-year outlook, and expanded its workforce reduction plan to up to 10,000 positions as part of its restructuring efforts.
• Atlassian (NASDAQ:TEAM) shares surged after the software company delivered stronger-than-expected fiscal third-quarter results and lifted its full-year 2026 revenue growth forecast to about 24%.
• Replenish Nutrients Holding Corp (CSE:ERTH, OTC:VVIVF, FRA:7KE) reported higher fourth-quarter revenue driven by stronger fertilizer sales, while continuing to post net losses as it advances commercialization of its regenerative fertilizer platform.
• Reddit Inc (NYSE:RDDT) beat first-quarter expectations with strong revenue and earnings growth, supported by rising advertiser demand for its lower-funnel advertising products.
• Roblox Corp (NYSE:RBLX) shares dropped sharply after the gaming platform missed first-quarter expectations on revenue, bookings, and daily active users, while also lowering its forward guidance.
• Rivian Automotive Inc (NASDAQ:RIVN) topped first-quarter estimates on revenue and deliveries as it began scalable production of its R2 model and expanded manufacturing capacity in Georgia.
• Sandisk reported sharply stronger fiscal third-quarter results, with AI-driven data center demand helping revenue and earnings significantly exceed Wall Street expectations.
• Apple Inc (NASDAQ:AAPL, XETRA:APC) shares rose in after-hours trading after the company posted stronger-than-expected March-quarter revenue and earnings, driven by solid iPhone performance.

1:05pm: What will April's jobs report hold?

Investors next week will focus on the April US employment report, alongside a packed slate of economic data including factory orders, JOLTS job openings, services PMIs, new home sales, jobless claims, construction spending, and April University of Michigan consumer sentiment.

Several Federal Reserve officials, including John Williams, Michael Barr, Austan Goolsbee, and Beth Hammack, are also scheduled to speak, with markets watching whether policymakers shift their tone following recent hawkish economic data.

For April payrolls, Bank of America expects nonfarm payrolls to rise by 80,000, with private payrolls up 90,000, still comfortably above breakeven levels. Education and health services are expected to lead gains, while warmer weather could support leisure, hospitality, and construction hiring.

The bank sees upside risk to the forecast, citing low jobless claims and improving ADP data, while expecting the unemployment rate to hold steady at 4.3%.

11:45am: Earnings outshining war worries

Earnings are currently taking precedence over war worries, according to Swissquote's Ipek Ozkardeskaya.

"As we enter May – traditionally a softer month – earnings resilience continues to offset geopolitical and inflation concerns," the senior analyst wrote.

"Trump downplays rising oil prices, arguing that there is plenty of oil – but blocked in the Strait – and that prices will fall like a rock once the issues are resolved. But when will that be? No one knows."

10:50am: China sales boost Apple

China was a standout in Apple's latest quarter, with revenue in the region climbing 28% to $20.5 billion, a sharp turnaround from recent quarters when it had weighed on performance.

Wedbush analyst Dan Ives said China "is a key theme for Apple as this core region has been a persistent growth headwind".

Services revenue reached $30.98 billion, slightly ahead of expectations, while gross margins of 49.3% and operating margins of 32.3% also beat forecasts.

As China was considerably better than Street expectations, Ives said the country is now a “strong tailwind” for the group, particularly as investors look ahead to the next iPhone upgrade cycle.

He added that Apple has "done a great job navigating a very complex tariff situation and memory pricing headwinds so far".

9.52am: Apple leads Nasdaq higher at open, Amgen drags on Dow

Wall Street stocks have opened higher, helped by strong early gains for Apple. 

The Nasdaq has started with a gain of 0.75%, while the S&P 500 has risen 0.55% and the Dow Jones 0.25%. 

Apple has climbed 3.2%, while Nvidia, Microsoft, Oracle, Salesforce and Cisco among other tech giants have all made good early gains. 

A 4.7% drop for Amgen has held the Dow back. 

8am: Mixed start expected

The Dow Jones is set to build on Thursday's gains when trading gets underway as solid company earnings continue to offset concerns about the ongoing conflict in the Middle East, now entering its 60th day. 

Dow Jones futures indicate a 0.3% rise, while those for the S&P 500 are up 0.1%. Nasdaq futures are down 0.2%. 

Thursday’s close marked the end of the best month for US stocks since 2020, with gains driven by economic data and Big Tech earnings. The Dow Jones rallied 1.6%, the S&P 500 added 1%, and the Nasdaq was up 0.9%.

“The latest US earnings season has been robust, which has helped prevent global markets from suffering big losses despite the impact of the Iran conflict," commented AJ Bell investment director Russ Mould. “But oil prices remaining above $110 per barrel are a reminder of the stakes for the global economy and the fact that there looks to be no path to the Strait of Hormuz reopening in the near term.

Apple Inc (NASDAQ:AAPL, XETRA:APC) released numbers after Thursday's close, sending its shares 2.8% higher in after-hours trade. 

Revenue came in at $111.18 billion for the March quarter, up 17%, beating forecasts of $109.46 billion. Earnings per share of $2.01 also came in ahead of estimates.

Growth was driven by iPhone and Services, with handset revenue rising 22% to $57 billion. China was a standout, with revenue in the region climbing 28% to $20.5 billion, a sharp turnaround from recent quarters when it had weighed on performance.

"Apple is taking a different approach to AI than its hyperscaler peers," Mould added. "It is spending much smaller sums and turning to partnerships instead of trying to take a lead in the artificial intelligence arms race.

“Time will tell if this plan pays off, but what some have dubbed the ‘Switzerland’ strategy, allowing users of its devices to choose the AI tools they want to use, does mean the cash outflows are significantly lower."

Meanwhile, in the UK, London's FTSE 100 ended the morning 0.6% lower, with continuing concern about the situation in the Middle East, profit taking in the utilities sector and weakness among precious metals miners all contributing.

Most European markets are closed for the May 1 International Workers' Day holiday.