US stocks rise for fifth straight week: their longest rally in 1.5 years

The main U.S. stock index, the S&P 500, and the "technology" Nasdaq Composite started May with a new record. They also rose for the fifth week in a row, making it their longest such rally since October 2024, MarketWatch notes. The Russell 2000 index of small and mid-capitalization companies also reached a new closing high. Stocks on Friday were influenced by lower oil prices, investors' hopes for a resolution to the Middle East crisis, and their excitement over corporate reports - particularly Apple.

- The S&P 500 broad market index rose 0.3% on Ma. 1 and ended the day at a record high, reaching 7,230.12 points. For the week, the S&P 500 rose 0.9% and this is the fifth consecutive week in the green, which is the longest streak of gains since 2024, Bloomberg writes. The S&P 500 gained a record number of points during the period, and as a percentage, posted its best performance since Ma 2020, MarketWatch says.

- The blue-chip index Dow Jones Industrial Average lost almost 153 points, or 0.31%, on Friday to close at 49,499.27 points. Over the week, the DJIA rose by 0.55%.

- The Nasdaq Composite Technology Sector Index rose 0.89% to 25,114.4 points. For the week, the index added 1.1%. It too rose for the fifth week in a row, and it too set a record for the most points gained during the period and the highest percentage gain since 2020.

- The Russell 2000 index of small and mid-capitalization companies rose 0.46% to close at 2,812.8 points. During the week it added more than 1%.

- The CBOE Volatility Index (VIX), known as the Wall Street Fear Index, added 0.6% to reach 17 points. The psychological mark indicating high volatility is considered to be 20 points.

- Brent crude futures fell 1.2% to $109 a barrel, while WTI crude fell 2.5% to $102.4 a barrel.

- Spot gold prices fell slightly by 0.1% to $4614.2 per troy ounce. Silver rose by 2.2% to $75.36.

- Bitcoin was adding 2% and was worth about $77,930, CoinGecko shows.

Most U.S. stocks ended trading Friday lower, but a sharp rise in software developer securities helped push the Nasdaq Composite and S&P 500 to new records, Barron's noted.

Investors were optimistic about corporate reports: according to Bloomberg, about 81% of companies in the S&P 500 beat their first-quarter earnings forecasts. Five companies from the "Magnificent Seven" tech giants reported this week. Apple shares rose more than 3% after the tech giant on Thursday beat expectations for revenue and earnings in its latest quarter. In addition, the company's sales forecast for the current quarter was better than expected.

On the other hand, oil prices declined after reports that Iran, through Pakistani mediators, sent a new proposal to end the war with the US. However, after that, US President Donald Trump said he was not happy with Iran's initiative, after which oil prices recovered some losses.

Trump also sent a letter to Congress declaring a "cessation" of hostilities in the Middle East, referring to the current truce. The letter effectively circumvents the statutory deadline after which the White House needs the consent of members of Congress to continue the war with Iran, according to AP News. Under a 1973 law, the president can wage war without congressional approval for 60 days. Defense Department head Pete Hegseth said at a Senate Armed Services Committee meeting on April 30 that he believes the counter "pauses or stops at a cease-fire," and Sen. Tim Kaine responded by expressing doubt about that, CNBC noted.

- "Both the results and the outlook for the future have been good," Ulrike Hoffmann-Burchardi, investment director for the Americas and global head of equities at UBS Global Wealth Management, told Bloomberg. - The tech sector is setting the tone, but earnings growth is becoming more broad-based - supported by solid consumer spending and signs of a cyclical upturn."

- "With respect to the U.S. and Iran, simply put, any cease-fire agreement would be a positive for the market, whereas any resumption of attacks would be a significant negative," Barron's quoted Sevens Report Research president Tom Essaia as saying.

- In the long term, the positive trend in equities may continue, says David Krakauer, vice president of portfolio management at Mercer Advisors. He hopes that the war with Iran will end soon, and this will lead to the opening of the Strait of Hormuz. At the same time, the expert notes that the potential for profit growth in the U.S. and abroad will support stocks even if the conflict continues, writes CNBC. "There can always be new news or deteriorate sentiment, and then after such a strong jump we may see a small pullback. But strategically, we are still generally positive on the market," the channel quotes Krakauer. The analyst also notes that there will be winners and losers in the technology sector, as not all capital expenditures on artificial intelligence will pay off.

This article was AI-translated and verified by a human editor