Wall Street rises towards more records as oil prices slip

Wall Street extended its record-setting rally on Friday, buoyed by a wave of stronger-than-expected corporate earnings and a modest pullback in oil prices. The S&P 500 rose 0.6% to another all-time high, while the Dow Jones Industrial Average gained 226 points (0.5%) and the Nasdaq composite added 0.7%, also hitting a new record. Apple led the charge, surging 3.3% after the iPhone maker reported higher profit and revenue for the latest quarter than analysts had forecast. Estee Lauder climbed 4.2% following a better-than-expected earnings report, partly due to strength in China, and raised some of its financial forecasts. Colgate-Palmolive added 3.1% after also delivering results above expectations, though CEO Noel Wallace cautioned that “volatile macroeconomic conditions and slower category growth” are expected to persist through 2026.

The main uncertainty hanging over the global economy remains the trajectory of oil prices amid the ongoing Iran war. Oil prices eased on Friday after spiking earlier in the week, helping to calm markets during the May Day holiday when many global exchanges were closed. The modest dip provided a temporary reprieve for investors concerned about supply disruptions and inflationary pressures. Despite the positive earnings momentum, the broader outlook is tempered by geopolitical risks and domestic headwinds. Analysts note that while strong corporate fundamentals are supporting the rally, the sustainability of gains depends on whether oil prices stabilize and consumer spending holds up in the face of continued macroeconomic volatility.