Apple leads Wall Street to more records as oil prices retreat

Apple leads Wall Street to more records as oil prices retreat
Apple leads Wall Street to more records as oil prices retreat

NEW YORK (AP) — The U.S. stock market set more records Friday after Apple, Estee Lauder and others joined the list of companies that posted bigger gains early in the year than analysts expected. Easing oil prices also helped stabilize stock markets around the world that were still open during the May Day holiday.

The S&P 500 rose 0.3% to its latest all-time high and closed out a fifth consecutive week of gains. It is the longest streak since 2024. The Dow Jones Industrial Average fell 152 points, or 0.3%, and the Nasdaq composite added 0.9% to its own record.

Apple led the way after the iPhone seller reported higher earnings and revenue for the latest quarter than analysts expected. Because it is one of the largest stocks on Wall Street in terms of overall size, Apple’s 3.3% rally was by far the strongest force driving the S&P 500.

Stock prices generally follow the path of long-term corporate profits, and American companies have beaten earnings expectations in the first three months of 2026. This even as the war with Iran and high oil prices are undermining the confidence of many American households.

According to FactSet, just over a quarter of S&P 500 companies have already filed their reports and 84% of them have surpassed analyst estimates. The index is on track to generate approximately 15% growth in earnings from a year ago.

Estée Lauder shares rose 3.4% after reporting better-than-expected earnings, thanks in part to strength in China, and upgraded some of its upcoming financial forecasts. Sandisk jumped 8.3% after the computer storage maker beat analysts’ profit expectations thanks in part to voracious data center demand.

Colgate-Palmolive added 2.2% after also posting better-than-expected results, although CEO Noel Wallace said he expects “volatile macroeconomic conditions and slower category growth to continue into 2026.”

The main uncertainty for the global economy is where oil prices are headed due to the Iran war. Oil prices rose earlier this week on concerns that the war will keep the Strait of Hormuz closed for a long time. That, in turn, would keep tankers stuck in the Persian Gulf instead of delivering crude to customers around the world.

But those measures have been quickly reversed over the course of the war, as hopes for a reopening of the strait wax and wane. On Friday, the price of a barrel of Brent crude oil, the international standard, fell 2% and stood at $108.17. Brent was selling for just over $70 a barrel before the war began.

That increase since late February helped the two largest U.S. oil companies report stronger fourth-quarter earnings than analysts expected. However, stock prices fell for both Exxon Mobil, 1%, and Chevron, 1.4%, as oil prices retreated on Friday and each reported declines in net income from a year earlier.

In total, the S&P 500 rose 21.11 points to 7,230.12. The Dow Jones Industrial Average fell 152.87 to 49,499.27 and the Nasdaq composite rose 222.13 to 25,114.44.

Falling oil prices helped Treasury yields decline in the bond market. So did a morning report that said U.S. manufacturing growth was a little weaker last month than economists expected.

The 10-year Treasury yield fell to 4.38% from 4.40% late Thursday. These declines can make mortgages and other loans cheaper for American households and businesses, and they also tend to drive up the prices of stocks and all kinds of other investments.

Many stock exchanges around the world were closed for May Day. Among indices still trading, Tokyo’s Nikkei 225 rose 0.4% and London’s FTSE 100 fell 0.1%.

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AP Business writers Matt Ott and Elaine Kurtenbach contributed to this report.

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