📰 S&P 500 and Nasdaq Hit Record Highs as Tech Rally Powers Historic April
May 1, 2026 marked a historic day for U.S. stock markets. The S&P 500 rose 1.02% to close at 7,209.01, breaking through the 7,200 threshold for the first time. The tech-heavy Nasdaq Composite gained 0.89% to settle at 24,892.31, setting both intraday and closing records. The Dow Jones Industrial Average surged 790.33 points (1.62%) to close at 49,652.14.
The rally was primarily fueled by strong earnings from tech giants. Apple reported second-quarter revenue of $111.18 billion, beating expectations, and raised its 2026 capital expenditure guidance to as much as $190 billion. Apple shares jumped 10%, providing significant support to the broader market.
Massive AI infrastructure spending by big tech continued to be a central focus for investors. Tom Graff, chief investment officer at Facet, noted: “What was most important on the ‘Magnificent Seven’ earnings is that we didn’t learn anything.” He highlighted that while hyperscaler spending on physical infrastructure is positive from a GDP perspective, concerns remain about company valuations. “Something that we’re going to keep wrestling with until we know one way or the other is: Does this AI spend at some point turn into software-like margins, or does it not really and we need to rethink those multiples,” Graff said.
For the full month of April, the S&P 500 gained 10.4%, marking its best monthly performance since November 2020. The Nasdaq surged 15.3%, its strongest month since April 2020. The Dow also posted a 7.1% advance, its best showing since November 2024.
Not all tech stocks participated in the rally. Meta Platforms fell 8.6%, and Microsoft declined 3.9%. Meta was weighed down by soaring capital expenditure guidance and disappointing user growth. Microsoft similarly faced pressure after announcing increased spending plans.
On the industrial side, Caterpillar shares popped nearly 10% after reporting better-than-expected earnings and raising its full-year revenue outlook, reinforcing its role as a bellwether for the global economy. The U.S. Commerce Department reported that first-quarter GDP grew at a 2% annualized pace, up from 0.5% in Q4 2025 but slightly below the 2.2% consensus estimate.
Analysts suggest the market’s strength reflects sustained confidence in tech sector AI investments, bolstered by easing Iran tensions and declining oil prices. However, elevated valuations and uncertainty around AI spending returns remain key risks to monitor going forward.
Source: CNBC | Yahoo Finance | Investopedia