The S&P 500 climbed to a fresh intraday record on Friday as trading began in May, supported by strong gains in Apple Inc.. Energy markets weakened at the same time, while later headlines on trade policy added fresh volatility to equities.
The benchmark index rose around 0.5% at one point, while the Nasdaq Composite advanced 0.8% and also touched a new all-time high. The Dow Jones Industrial Average gained about 112 points, or 0.2%.
Apple was a key driver of market strength, jumping more than 3% after reporting better-than-expected fiscal second-quarter earnings and revenue. The company also delivered a stronger-than-forecast outlook for the current quarter, which helped offset weaker-than-expected iPhone sales for the second time in three quarters.
Oil prices moved in the opposite direction. Crude markets declined after reports that Iran had responded—through Pakistani mediators—to recent U.S. proposals aimed at easing Middle East tensions. U.S. benchmark West Texas Intermediate crude fell about 3% to just above $101 per barrel, while global benchmark Brent crude slipped roughly 2% to above $108 per barrel.
Earlier in the week, markets had already posted strong gains, with the S&P 500 closing above the 7,200 level for the first time ever. Both the S&P 500 and Nasdaq recorded their strongest monthly performance since 2020, while the Dow saw its best month since November 2024. Much of the rally has been supported by solid corporate earnings and expectations that geopolitical tensions in the Middle East may gradually ease.
Investor sentiment remained broadly positive, with David Krakauer of Mercer Advisors noting that long-term fundamentals continue to support equities despite short-term volatility risks. He pointed to continued earnings growth and productivity gains, particularly driven by artificial intelligence investment trends.
Tariff announcement adds late-session pressure
In a separate development, markets saw additional pressure after U.S. President Donald Trump announced plans to raise tariffs on European automobiles. In a post on Truth Social, he stated that the United States would increase duties on cars and trucks imported from the European Union.
Trump said the move was in response to what he described as the European Union not fully complying with a previously agreed trade deal. He added that tariffs on EU cars and trucks would rise to 25% starting next week. However, he also noted that vehicles manufactured within the United States would not be subject to these tariffs.
The announcement briefly weighed on market sentiment, with the S&P 500 slipping from earlier highs, though it still ended the session up more than 0.70% at its peak.
Automaker stocks reacted immediately to the news. Shares of Stellantis fell more than 2%, while Italian luxury carmaker Ferrari dropped nearly 1.5% following the statement.
