The Nasdaq and S&P 500 soared to fresh records Friday, cheered by strong earnings from tech giants, including a 3.2% jump in Apple stock. Analysts say the market is shrugging off the prolonged US-Iran war that has pushed oil prices above $100 a barrel.
Adam Sarhan of 50 Park Investments said, "The war is not over but the market doesn't care. That tells me the reaction to the news is extremely bullish."
Companies in the S&P 500 are on track for earnings growth of 27.1%, the highest in over four years, according to Factset. AJ Bell's Russ Mould noted that this robust earnings season has helped global markets avoid big losses despite the Iran conflict.
Oil prices dipped after Iran sent a new proposal to Pakistan, but President Trump rejected it, saying he's "not satisfied." ExxonMobil CEO Darren Woods warned prices could rise further as commercial inventories and government reserves are depleted. The Strait of Hormuz remains effectively shut down.
Several European and Asian markets were closed for the May 1 holiday. In Tokyo, stocks rose, while London fell, weighed down by NatWest's cautious outlook. Central banks in the US, Europe, Japan, and the UK held rates steady this week.