U.S. stocks closed out April with a broad rally that pushed the S&P 500 to a fresh all-time high of 7,209.01, a gain of 1% on the day, while the Dow Jones Industrial Average leaped 790 points, or 1.6%, and the Nasdaq composite climbed 0.9% to its own record. The gains cemented the S&P 500’s best monthly performance since 2020, even as oil prices whipsawed overnight on fears that the Iran war will disrupt crude supplies for a prolonged period.
The swift rise and partial retreat of oil prices supplied the day’s most dramatic backdrop. The Brent crude contract for July delivery, the most actively traded, surged as high as $114.70 per barrel before falling back to settle at $110.40 — nearly flat from the day before. In a thinner corner of the market, the June Brent contract briefly pierced $126 before pulling back. The spike came after Iran closed the Strait of Hormuz, trapping oil tankers in the Persian Gulf, while a U.S. Navy blockade prevented Iran from exporting its own crude. The disruption has kept Brent far above its pre-war level of roughly $70, though the peak price for the actively traded contract remains the $119.50 reached last month.
Corporate earnings, however, dominated the trading session. Alphabet led the charge, jumping 10% after the parent of Google and YouTube reported quarterly profit that almost doubled analysts’ expectations. “Investments in artificial intelligence are lighting up every part of the business,” CEO Sundar Pichai said. Caterpillar surged 9.9%, Eli Lilly added 9.8%, and O’Reilly Automotive rose 8.4% — all after delivering profits that topped forecasts. Because stock prices tend to follow the trajectory of corporate profits over the long term, the wave of strong results provided a powerful underpinning for the market’s upward march.
Not every profit beat was rewarded. Meta Platforms tumbled 8.7% even though the company behind Facebook and Instagram earned more last quarter than expected. Investors instead zeroed in on Meta’s higher forecast for capital spending on data centers and other AI infrastructure, reflecting persistent doubts about whether the industry’s massive AI investments will yield commensurate profits and productivity gains. Microsoft fell 3.9% after likewise raising its investment outlook, though analysts noted encouraging momentum in its Azure cloud business. Amazon swung between gains and losses before closing 0.8% higher after its earnings blew past Wall Street estimates.
Economic data released Thursday painted a mixed picture that helped calm Treasury yields. A report showed the U.S. economy grew by less than economists expected in the first three months of the year, while a separate inflation measure worsened in March by about as much as anticipated. Meanwhile, fewer Americans filed for unemployment benefits last week, signaling that layoffs remain limited despite high-profile corporate job cuts. The yield on the 10-year Treasury note eased to 4.38% from 4.42% late Wednesday.
Central banks across major economies mirrored one another’s caution. The Bank of England held its main interest rate steady, following similar decisions this week by the Federal Reserve, the Bank of Japan, and the European Central Bank. The coordinated pause reflects a shared judgment that inflation is not yet tamed and that the economic outlook — clouded by the war, high oil prices, and uncertain growth — does not warrant premature rate moves.
Stock markets abroad ended the day mixed. London’s FTSE 100 jumped 1.6%, and Germany’s DAX and France’s CAC 40 rose 1.4% and 0.5%, respectively. In Asia, Hong Kong’s Hang Seng lost 1.3%, while Shanghai’s benchmark edged up 0.1% after a report showed China’s factory activity slowed slightly in April but remained in expansion territory for a second straight month.