The S&P 500 and Nasdaq closed at all-time highs on Friday, driven by strong earnings reports from major technology companies and a resilient market attitude despite ongoing geopolitical tensions.
Apple shares rose 3.2% after the company posted upbeat results, adding to the positive sentiment on Wall Street. Several European and Asian markets were closed for the May 1 holiday, but those that were open showed mixed performance.
"The war is not over but the market doesn't care," said Adam Sarhan of 50 Park Investments. "That tells me that the reaction to the news is extremely bullish and until we see any heavy selling show up, the bulls are in control."
Analysts attribute the market strength to a robust earnings season. Companies in the S&P 500 are on track to report earnings growth of 27.1%, the highest rate in more than four years, according to Factset.
"The latest US earnings season has been robust, which has helped prevent global markets from suffering big losses despite the impact of the Iran conflict," said Russ Mould, investment director at AJ Bell.
Oil prices slipped after Iran reportedly delivered a new proposal to mediator Pakistan. However, US President Donald Trump rejected the offer, stating he was not satisfied with the terms and citing "tremendous discord" within Iran's leadership. Both major oil contracts remain above $100 a barrel as the Strait of Hormuz remains effectively shut down.
ExxonMobil CEO Darren Woods warned that prices could climb further, noting that while the market has managed the dislocation so far using commercial inventories and strategic government reserves, those supplies are dwindling. "So there's more to come if the strait remains closed," he said on an earnings call.
In other markets, Tokyo rose while London fell, weighed by British bank NatWest, which reported higher quarterly net profit but warned of deteriorating economic conditions. The European Central Bank and the Bank of England held interest rates steady on Thursday but signaled potential increases ahead.