New York Stock Exchange, Apple Inc.'s strong performance drives the NASDAQ to break through 25,000 points for the first time

The major U.S. stock indexes on the 1st (local time) were boosted by Apple’s better-than-expected earnings and a drop in international oil prices, again extending the historic highs.

That day, the S&P 500 index rose 21.11 points (0.29%) from the previous trading day, closing at 7,230.12 points; the Nasdaq Composite index, led by technology stocks, increased 222.13 points (0.89%), closing at 25,114.44 points. The S&P 500 index set a new record for the highest closing level for two consecutive trading days, and the Nasdaq index broke through the 25,000-point mark for the first time, clearly showing the strength of technology stocks. By contrast, the Dow Jones Industrial Average fell 152.87 points (0.31%), closing at 49,499.27 points, and there was a spread among the indices.

The core driving force behind the market’s rise was Apple. Apple’s stock price rose 3.24%, improving overall investor sentiment toward large technology stocks. Although iPhone sales were slightly below market expectations, net profit and future earnings outlook came in above expectations. Investors focused more on improvements in profitability and the possibility of future business expansion rather than weak short-term sales. Recent market trends have placed even greater emphasis on investments related to artificial intelligence, expansion of the services business, and profit-protection capabilities, rather than simply on the scale of revenue.

Among the “Big Seven” companies that released earnings this week, 5 had exceeded market expectations, adding momentum to the stock market as well. This has been interpreted as meaning that even amid geopolitical uncertainty such as the Middle East war, major U.S. companies continue to demonstrate strong profitability centered on the artificial intelligence industry and carry out large-scale capital investments. Ryan Detrick, Chief Market Strategist at Carson Group, told Reuters that as corporate earnings have continued to outperform expectations, investors have wrapped up a steady week and expect the upward momentum seen in April to continue into May.

The decline in international oil prices also played a positive role for the stock market. Brent crude futures fell 2.0% from the previous trading day, closing at $108.17 per barrel; U.S. West Texas Intermediate (WTI) crude futures fell 2.98%, closing at $101.94 per barrel. The fall in oil prices increased expectations in the market that the burden of corporate costs and consumer price pressures might ease, which is generally viewed as a positive factor for stocks.

Behind the drop in oil prices was the renewed mention of news that negotiations between the U.S. and Iran to end the war might be restarted. Iran’s state news agency IRNA reported that Iran has submitted a new negotiating proposal aimed at ending the war with the U.S. to mediator Pakistan. However, U.S. President Donald Trump said that while he hopes to reach an agreement, in his view the proposal is not satisfactory, and whether actual negotiations can make progress remains to be seen. This trend indicates that in the future, corporate earnings and artificial intelligence investment expectations will continue to support gains in the stock market, while the Middle East situation and oil price fluctuations may continue to act as variables affecting the market’s direction in the short term.