May Starts Merrily on Apple Earnings, Peace Hopes
Published as of: May 1, 2026, 9:11 a.m. ET
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| The markets | Last price | Change | % change |
|---|---|---|---|
| S&P 500® Index | 7,209.01 | +73.06 | +1.02% |
| Dow Jones Industrial Average® | 49,652.14 | +790.33 | +1.62% |
| Nasdaq Composite® | 24,892.31 | +219.07 | +0.89% |
| 10-year Treasury yield | 4.38% | -0.01 | -- |
| U.S. Dollar Index | 97.90 | -0.15 | -0.15% |
| Cboe Volatility Index® | 16.93 | +0.04 | +0.24% |
| WTI Crude Oil | $103.51 | -$1.56 | -1.48% |
| Bitcoin | $78,430 | +$1,690 | +2.20% |
(Friday market open) After Apple (AAPL) became the latest mega cap to deliver impressive earnings, major indexes mostly built on their sizzling rally early today as crude dropped on reports that Iran might have offered a new peace proposal. Focus now shifts to manufacturing data, while next week brings a full host of jobs reports including April nonfarm payrolls.
As the calendar page flips, a slew of tech earnings loom, highlighted next week by Palantir (PLTR), Advanced Micro Devices (AMD), and Arm Holdings (ARM). One theme reinforced this week is that AI capex, or capital spending, isn't slowing, as outlays could approach $700 billion in 2026. Markets are rewarding AI spending that shows near-term monetization, as seen with Alphabet (GOOGL), and punishing spending without clear incremental returns—something analysts criticized after viewing Meta Platforms' (META) results. Expect sharper demands for AI return on investment disclosure next quarter.
The S&P 500 Index and Nasdaq Composite forged new all-time highs yesterday, with 10 of 11 sectors up, sealing an April with 10% gains for the broader market that were its best for any month in five years. Only tech swung and missed Thursday. Though major indexes track for a positive week, so do Treasury yields, a note of caution. The April ISM Manufacturing PMI® data at 10 a.m. ET could affect trading in both stocks and Treasuries. Consensus is for 53.1%, up from 52.7% in March, according to Briefing.com, meaning the fourth straight month above the 50% needed for expansion.
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Three things to watch
- Saturday's alright for Berkshire: This wild week just keeps on giving. Even on Saturday. Exhausted investors might want a break but tomorrow features the annual meeting and quarterly earnings from Berkshire Hathaway (BRK.B). This one could attract extra attention as new CEO Greg Abel takes over the hosting job from legendary Warren Buffett. Shares have trailed the market over the last year, and investors may be wondering what the company plans to do with nearly $400 billion in cash on hand. This reserve now represents more than 50% of Berkshire's portfolio, and some analysts believe the company got too cautious, too soon, about the stock market. If Abel and company sound more interested in putting that money to work, it could get a bullish read from Wall Street. Investors might want to consider listening this weekend to see what plans, if any, Berkshire might have burning a hole in its wallet.
- Apple's iPhone sales miss but margin impresses: Apple's quarterly results gave both bulls and bears some support. Overall earnings and revenue topped expectations, while iPhone sales growth came in slightly short of consensus. Gross margin, however, impressed at 49.3%, above the consensus of 48.4%, and this may be a bigger deal than it sounds. For one, it reflects more strength out of the high-margin services business, which continues delivering for Apple. And it came even as analysts fretted about rising prices for memory chips that could hurt Apple's margins. Some say this could be a factor down the road, but if strength in China and services persists and iPhone growth near 20% can be sustained, perhaps the margin fears diminish a bit. Apple seems convinced the good times will last, providing upbeat guidance and announcing a new stock buyback, and investors chose to focus on the positive for now, sending shares up 3.75% early Friday.
- Expanding retirement savings access: Yesterday, President Trump signed an executive order aimed at expanding access to retirement accounts for workers without access to employer-sponsored options. The executive order instructs the Treasury Department to by January 1, 2027 launch TrumpIRA.gov—a marketplace where private-sector retirement plans will be available. The plans offered must meet certain requirements such as low fees, no minimum balance, and a range of limited-risk investment options. The upcoming website launch coincides with the 2027 introduction of the Saver's Match program, which was approved in 2022 as part of the Secure 2.0 Act. Under this law, people earning $35,500 or less can receive a 50% federal match on their annual contributions up to $1,000, while those making $20,500 or less qualify for a 100% match. "Generally, Schwab of course supports broad access to retirement savings opportunities," noted Michael Townsend, managing director of legislative and regulatory affairs at Schwab. Roughly 54 million Americans with full- or part-time jobs lack access to an employer-sponsored retirement plan, according to the Economic Innovation Group. Elsewhere in Washington, the Department of Homeland Security will reopen after an unprecedented 76-day shutdown, following legislation that passed the House and was quickly signed by the President. The bill will fund the department through September 30, apart from Immigration and Customs Enforcement and parts of Customs and Border Protection.
On the move
- Western Digital (WDC) fell 7.4% despite exceeding earnings and revenue expectations, raising guidance and raising its dividend. Shares have been on a parabolic rally and the early stumble might reflect post-earnings profit taking.
- Sandisk (SNDK) fell 5.6% despite an outlook that topped consensus. This is another memory chip sector stock that's come a long way very fast and may be seeing some "buy the rumor, sell the fact" trading. Micron (MU), another memory chip giant, fell 1.6%.
- Nvidia staged a small recovery early from yesterday's 4% dive. Shares came under pressure Thursday after the mega-cap earnings blitz, hurt by progress by Amazon (AMZN) and Alphabet (GOOGL) making their own chips.
- Roku (ROKU) rose 9% in early trading, responding to better-than-expected quarterly results and higher guidance. Subscriptions revenue rose 30% year over year.
- Rivian (RIVN) fell more than 3% despite earnings beating Wall Street consensus and a 20% rise in delivery volumes year over year. It's also increasing production capacity. The weakness might reflect investors being disappointed the company didn't share more details about demand for its new R2 electric SUV, Bloomberg reported.
- ExxonMobil (XOM) edged higher on an earnings outperformance as oil production gains from South America and the U.S. offset output losses in the Persian Gulf.
- Enbridge (ENB) slipped 2.6% after solid gains Thursday on news that President Trump signed an order allowing cross-border pipeline for oil and gas delivery between the U.S. and Canada.
- The U.S. dollar ($DXY) dipped against the yen after the Bank of Japan (BOJ) overnight appeared to intervene to support its ailing currency, Reuters and Bloomberg reported. The dollar fell as much as 0.66% against the yen and the yen rose 3% from recent lows of 160 per dollar, Reuters reported, noting the intervention that likely cost Japan more than $34 billion. U.S. Treasury yields, sensitive to weakness in the dollar, remain near recent highs but fell slightly early today.
- After yesterday's data and Wednesday's rate pause, chances for a rate cut in June were around 5% early today, according to the CME FedWatch Tool. For the full year, futures trading suggests rates will stay at the current level between 3.5% and 3.75%, with just 10% chances of a cut and 6% chances of a hike. The odds of a hike rose from zero before the Fed meeting.
- Market breadth shows 50% of S&P stocks trading above their respective 50-day and 200-day moving averages, not ideal but improving. Dispersion remains high as traders see near-term opportunities in a select few names and sectors. The weekly advancers versus decliners data shows decliners actually leading by a 1.5 to 1 pace. Still, the S&P 500 Index and Nasdaq in April had their best months since 2020.
- The CBOE Volatility Index (VIX) ticked up this morning but rests below 17, a nearly two-week low. A falling VIX implies less uncertainty, suggesting market participants continue to look past tense geopolitics and high oil prices.
More insights from Schwab
Corporate credit update: In this week's On Investing podcast, Schwab checked the state of corporate credit markets and how the evolution of their structure has contributed to an overall improvement in index-level credit quality. Also, Schwab experts discussed the transition at the Fed and how it might affect the central bank's communication with markets and how it communicates policymakers' outlook.
Big chips prepare to report: Earnings from major chip companies including Advanced Micro Devices (AMD) and Nvidia (NVDA) are due this month, and expectations are high going in. Software companies, meanwhile, have slumped from AI's impact. Learn more about what to watch in the second big round of chip and software earnings in our latest tech earnings outlook.
Join a Schwab webcast: Schwab Coaching will be hosting multiple webcasts today, May 1, to celebrate National Investing Day and over 50 years of serving our clients. Events start at 10:00 a.m. ET, with a full agenda covering key topics for today's investors.
Chart of the day
Data sources: S&P Dow Jones Indices, FTSE Russell. Chart source: thinkorswim® platform.
Past performance is no guarantee of future results.
For illustrative purposes only.
Though the S&P 500 Index (SPX—candlesticks) had an outstanding April, rising double digits, the rally was top-heavy, meaning stocks with higher market capitalizations led the way. That's evident comparing the SPX to the S&P 500 Equal Weight Index (SPXEW—purple line), which weighs all components the same and is less influenced by mega caps. Both were beaten soundly by the small-cap Russell 2000® (RUT—blue line) in April, despite rising yields that can be a headwind for smaller firms. Ideas that the U.S. economy might be less hard hit by geopolitics might have helped small caps, which tend to have a higher percentage of domestic sales.
The week ahead
Check out the investors' calendar for a summary of the top economic events and earnings reports on tap this week.
May 2: Expected earnings from Berkshire Hathaway (BRK.B).
May 4: Expected earnings from Palantir (PLTR), Vertex Pharmaceuticals (VRTX), and Tyson Foods (TSN).
May 5: ISM April Services PMI® and expected earnings from Advanced Micro Devices (AMD), Arista Networks (ANET), Lumentum (LITE), Strategy (MSTR), Eaton (ETN), Shopify (SHOP), Pfizer (PFE), Anheuser-Busch Inbev (BUD), and Duke Energy (DUK).
May 6: ADP April employment and expected earnings from Walt Disney (DIS), Uber Technologies (UBER), Novo Nordisk (NVO), CVS Health (CVS), Marriott International (MAR), Apollo Global Management (APO), Medline (MDLN), Arm Holdings (ARM), AppLovin (APP), DoorDash (DASH), and Warner Bros. Discovery (WBD).
May 7: February construction spending and expected earnings from Shell (SHEL), McDonald's (MCD), Gilead Sciences (GILD), McKesson (MCK), CoreWeave (CRWV), Coinbase Global (COIN), and Airbnb (ABNB).
May 8: April nonfarm payrolls, preliminary May University of Michigan Consumer Sentiment, and expected earnings from Sony (SONY) and Enbridge (ENB).