S&P 500 and Nasdaq Close at Fresh Records as Tech Surges and Oil Slides

The stock market today told a clean rotation story. Technology ripped +1.49% higher while Energy sank -1.34%, a nearly three-percentage-point spread that defined the entire session. Money flowed out of oil-sensitive names and into growth, with the Nasdaq Composite posting a new all-time closing high at 25,114.44.

Apple did the heavy lifting, jumping more than 3% after posting a fiscal second-quarter earnings and revenue beat. The company's guidance for the current quarter blew past estimates, with revenue projected to grow 14% to 17% year over year versus the 9.5% analysts expected.

CEO Tim Cook pointed to strong demand for the iPhone 17 lineup and the new MacBook Neo. On the other side of the ledger, oil prices dropped sharply after Iran reportedly sent a response through Pakistani mediators to the latest U.S. amendments on a Middle East peace deal. WTI crude fell -2.39% to $102.56, dragging energy stocks down with it.

Market Scorecard

The S&P 500 closed at 7,230.12, a new record, after crossing the 7,200 threshold for the first time in the prior session. The Dow was the odd one out, slipping 152 points as its heavier weighting toward industrials and financials dragged it lower.

Treasuries edged down across the curve, with the 10-year yield dipping 1.2 basis points to 4.378%. That was a modest move reflecting the risk-on tone without any real conviction in the bond market.

Bitcoin had a strong session, climbing +2.42% to $78,147.53. Gold barely moved at $4,623.70, up just 0.20%. When equities are running and oil is falling, gold tends to sit quietly in the corner, and that's exactly what happened.

Sector Performance

The sector map was lopsided. Technology stood alone with a +1.49% gain, more than six times the next-best sector. Apple's 3%-plus move did a lot of the work, but Twilio also jumped after raising its annual revenue growth forecast on AI-driven demand. Only three of eleven sectors finished green.

At the bottom, Energy dropped -1.34% as WTI crude fell nearly 2.4% on the Iran peace proposal headlines. Industrials weren't far behind at -0.93%, and Utilities gave back -0.64%.

The pattern was clear: traders sold anything tied to the old economy and bought growth. That's a textbook risk-on rotation, and it showed up in the Nasdaq's outperformance over the Dow by more than a full percentage point.

Why Did Apple Stock Jump 3% After Earnings?

Apple was the single biggest story in the stock market today. The company posted fiscal second-quarter revenue of $111.18 billion, up 17% year over year, beating estimates on both the top and bottom line.

But the real surprise was forward guidance: management projected 14% to 17% revenue growth for the fiscal third quarter, well above the 9.5% Wall Street had penciled in.

CEO Tim Cook credited the iPhone 17 lineup, calling it the "most popular lineup in our history." He also highlighted the MacBook Neo, a lower-cost computer released in March, saying customer response had been "off the charts, with higher-than-expected demand." Morgan Stanley raised its fiscal-year EPS estimate to $8.89 from $8.63 following the report.

The one overhang: soaring memory costs. Cook acknowledged the trend and said Apple would "look at a range of options" to address it. Analysts flagged the risk but largely shrugged it off after the guidance blowout. S&P 500 profit growth is now tracking toward the sharpest quarterly increase in four years, and Apple's results only added to that momentum.

What Does the Iran Peace Proposal Mean for Oil and Energy Stocks?

Oil prices dropped sharply on Friday after Iran reportedly sent its response through Pakistani mediators to the latest U.S. amendments to a draft agreement aimed at ending the Middle East conflict. WTI crude settled at $101.94 per barrel intraday, down nearly 3%, before closing the session around $102.56.

The move cooled somewhat after President Trump said he was "not satisfied" with Iran's new peace offer. Oil came off its session lows on that comment. Still, the possibility of easing tensions in the region was enough to pressure energy names all day.

The 10-year Treasury yield had dipped below 4% just before the start of the Middle East conflict but is now closer to 4.35%. It sits at 4.378%, suggesting the bond market hasn't fully priced in a resolution.

Looking Ahead

The S&P 500 and Nasdaq both entered May with fresh closing records, capping what was the strongest monthly performance for both indexes since 2020. The Dow posted its best month since November 2024. That's a lot of momentum heading into a new week.

Earnings will continue to roll in, and jobs data is on the calendar. The Iran situation remains fluid, with Trump's dissatisfaction with the latest offer leaving oil prices in limbo. If crude continues to fall, that's a tailwind for consumer-facing sectors and a headwind for energy. If talks stall, expect the reverse.

The VIX at 16.99 suggests traders aren't bracing for trouble, but it did tick up slightly on the day. With the Fear & Greed Index reading around 68, sentiment sits firmly in greed territory. The market is comfortable, maybe too comfortable. That's worth watching as the week develops.