Wall Street ended the week on a high note, with the S&P 500 and Nasdaq Composite both closing at all-time highs on Friday, May 2, 2026. The Dow Jones Industrial Average, however, bucked the trend, slipping 0.3% to end at 49,499.27. The S&P 500 rose 21.11 points, or 0.3%, to 7,230.12, while the Nasdaq surged 222.13 points, or 0.9%, to 25,114.44. For the week, the S&P 500 gained 0.9%, the Nasdaq added 1.1%, and the Dow advanced 0.5%, according to market data.
Earnings Season Delivers Strong Results
Investors focused on a stellar earnings season, with analysts projecting first-quarter S&P 500 earnings growth of 27.8% year-over-year, the fastest pace since the fourth quarter of 2021, according to LSEG I/B/E/S data cited by Reuters. Of the 314 companies that have reported so far, 83% have beaten profit estimates, and 78% have exceeded revenue expectations. This earnings momentum has been a key driver of the recent rally, offsetting headwinds from rising oil prices and bond yields.
Apple (AAPL) shares climbed 3.3% after the company issued a strong sales forecast, citing robust demand for the iPhone 17 and MacBook Neo. Atlassian (TEAM) surged 29.6% after raising its annual guidance. Other tech winners included Salesforce (CRM), up 4.1%, and ServiceNow (NOW), which gained 3.2%. On the downside, Roblox (RBLX) slid 18.3% after cutting its annual bookings forecast.
Energy Sector Lags as Oil Prices Remain Elevated
Energy stocks were the weakest link on Friday, as crude oil futures softened. Exxon Mobil (XOM) fell 1.0%, and Chevron (CVX) dropped 1.4% after reporting weaker results, pressured by ongoing turmoil in the Middle East. Brent crude briefly surged past $120 a barrel earlier in the week before retreating, according to Reuters. The elevated oil prices and persistent geopolitical tensions are casting a shadow over the broader market outlook.
“We have these fast-rising profits on one side, and then on the other, we have upward pressures on oil prices and bond yields,” said Angelo Kourkafas, senior global investment strategist at Edward Jones, in a Reuters interview. He added that the market may be due for a period of consolidation after April’s rally.
Federal Reserve Remains a Key Concern
The Federal Reserve continues to be a drag on sentiment. While major central banks held rates steady this week, the Fed’s decision was unusually close, with an 8-4 split—the tightest in decades. Three dissenters objected to the dovish tone in the statement, while one pushed for a rate cut. Traders are now pricing out any rate cuts for 2026 and are even considering a possible hike in early 2027.
The Fed’s stance, combined with elevated oil prices, is creating a challenging environment for equities. “The economic risk rises every day that oil stays elevated and the Middle East conflict drags on,” said Jeff Buchbinder, chief equity strategist at LPL Financial, in a Reuters report.
Looking Ahead: Key Earnings and Jobs Data
Next week will be pivotal, with more than 100 S&P 500 companies set to report earnings, including Palantir (PLTR), Walt Disney (DIS), McDonald's (MCD), and Advanced Micro Devices (AMD). Michael O'Rourke, chief market strategist at JonesTrading, highlighted the importance of semiconductor stocks, noting that “this is the group that is dominating the tape and dominating the market.”
Jobs data will also be in focus, with the April payrolls report due on May 8. Economists surveyed by Reuters expect a gain of just 60,000 jobs, a sharp slowdown from the 178,000 added in March. “It’s a slow job market, but the job market is still hanging in there,” Buchbinder said.
The old adage “sell in May and go away” is being debated, but recent history suggests it may not apply. “You hate to say to ignore ‘sell in May, go away’ … but it hasn’t worked at all in the last decade,” said Ryan Detrick, chief market strategist at Carson Group. For now, the market remains buoyed by earnings, but risks from oil, rates, and geopolitics loom large.
