The S&P 500 Index ($SPX) (SPY) on Friday closed up +0.80%, the Dow Jones Industrial Average ($DOWI) (DIA) closed down -0.16%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +1.95%. June E-mini S&P futures (ESM26) rose +0.72%, and June E-mini Nasdaq futures (NQM26) rose +1.86%.
Stock indexes settled mostly higher on Friday, with the S&P 500 and Nasdaq 100 posting new all-time highs. Intel rose more than +23% to a record high to lead chipmakers higher after forecasting Q2 revenue of $13.8 billion to $14.8 billion, well above expectations of $13.04 billion. The surge in Intel has reignited optimism over the economic potential of artificial intelligence for semiconductor manufacturers. Software stocks also rallied on Friday, adding to the bullish momentum.
Stocks added to their gains Friday amid optimism that the US and Iran are moving toward talks after days of deadlock. President Trump said he will send two envoys to Pakistan this weekend for talks with Iran, and the New York Times reported that Iranian Foreign Minister Abbas Araghchi will meet with a US envoy in Islamabad on Saturday.
Stocks maintained their gains on Friday as bond yields fell, following the Department of Justice (DOJ) announcement that it was dropping its investigation into Fed Chair Powell over cost overruns in the Federal Reserve's renovation. The ending of the DOJ probe into Fed Chair Powell may now persuade Senator Tillis to drop his opposition to appointing Fed nominee Warsh as the next Fed Chair, as Tillis had vowed to block Warsh’s confirmation unless the DOJ investigation was dropped.
Friday’s US economic news was supportive of stocks. The University of Michigan US Apr consumer sentiment index was revised upward by +2.2 to 49.8, stronger than expectations of 48.5. The University of Michigan US Apr 1-year inflation expectations were revised downward by -0.1 to 4.7% from 4.8%. The Apr 5-10 year inflation expectations were revised upward by +0.1 to a 6-month high of 3.5% from 3.4%.
The US and Iran are locked in a battle for control of the Strait of Hormuz, with both sides blocking the waterway to gain leverage during an extended ceasefire. The US increased pressure on Iran with its naval blockade as it seeks to get Iran to agree to talks, while Israel and Lebanon are set to extend a ceasefire for three weeks.
WTI crude oil prices (CLM26) fell by more than -1% on Friday after Pakistani officials said a second round of US-Iran talks was expected. The Strait of Hormuz remains essentially closed, threatening to deepen the global energy crisis. The ongoing blockade could exacerbate global oil and fuel shortages, as about a fifth of the world’s oil and liquefied natural gas transits through the strait. Goldman Sachs estimates that crude output in the Persian Gulf has been curtailed by about 14.5 million bpd, or more than 50%, so far in April, and that the current disruption has drawn down nearly 500 million bbl from global crude stockpiles, which could hit a billion bbl by June.
Earnings season thus far has been supportive of stocks. As of Friday, 80% of the 139 S&P 500 companies that reported Q1 earnings have beaten estimates. Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence. Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.
The markets are discounting a 1% chance for a +25 bp FOMC rate hike at the April 28-29 policy meeting.
Overseas stock markets settled mixed on Friday. The Euro Stoxx 50 fell to a 2-week low and closed down -0.19%. China's Shanghai Composite closed down -0.33%. Japan's Nikkei Stock 225 closed up +0.97%.
Interest Rates
June 10-year T-notes (ZNM6) on Friday closed up +5.5 ticks. The 10-year T-note yield fell -2.0 bp to 4.304%. Jun T-notes recovered from early losses on Friday and moved higher, and the 10-year T-note yield fell from a 1.5-week high of 4.353% and moved lower. T-notes rebounded on Friday after WTI crude oil gave up a +1% advance and fell more than -1%, easing inflation concerns.
Gains in T-notes accelerated on Friday after the DOJ said it was dropping its investigation of Fed Chair Powell over building-renovation costs at the Federal Reserve. The ending of the investigation into Fed Chair Powell may persuade Senator Tillis to drop his opposition to appointing Fed nominee Warsh as the next Fed Chair, as Tillis had vowed to block Warsh’s confirmation unless the DOJ investigation was dropped. Speculation is that Mr. Warsh will take a more dovish tone to Fed policy than outgoing Fed Chair Powell.
European government bond yields moved lower on Friday. The 10-year German bund yield fell -1.5 bp to 2.994%. The 10-year UK gilt yield fell from a 4-week high of 4.993% and finished down by -2.7 bp to 4.912%.
The German Apr IFO business confidence index fell -1.9 to a nearly 6-year low of 84.4, weaker than expectations of 85.7.
ECB Governing Council member Peter Kazimir said the war in Iran might necessitate a slight increase in ECB interest rates.
UK Mar retail sales ex-autos rose +0.2% m/m, stronger than expectations of no change m/m.
Swaps are discounting a 9% chance of a +25 bp ECB rate hike at its next policy meeting on April 30.
US Stock Movers
Intel (INTC) closed up more than 23% to lead chip stocks higher and gainers in the S&P 500 and Nasdaq 100 after forecasting Q2 revenue of $13.8 billion to $14.8 billion, well above expectations of $13.04 billion. Also, Advanced Micro Devices (AMD) and ARM Holdings Plc (ARM) closed up more than +13%, and Qualcomm (QCOM) closed up more than +11%. In addition, KLA Corp (KLAC) closed up more than +5%, and Nvidia (NVDA) closed up more than +4% to lead gainers in the Dow Jones Industrials. Finally, Lam Research (LRCX) and Micron Technology (MU) closed up more than +3%, and Applied Materials (AMAT) and ASML Holding NV (ASML) closed up more than +2%.
Software stocks rallied on Friday, helping support gains in the broader market. ServiceNow (NOW) closed up more than +6%, and Atlassian (TEAM) and Cadence Design Systems (CDNS) closed up more than +5%. Also, (WDAY) closed up more than +4%, and Intuit (INTU) closed up more than +3%. In addition, Microsoft (MSFT), Salesforce (CRM), Adobe Systems (ADBE), and Autodesk (ADSK) closed up more than +2%.
Organon & Co. (OGN) closed up more than +32% after the Economic Times reported that Sun Pharma is planning to submit a binding offer of $13 billion for the company.
Chemed Corp (CHE) closed up more than +10% after reporting Q1 adjusted EPS of $5.65, stronger than the consensus of $5.30.
Hims & Hers Health (HIMS) closed up more than +8% after JPMorgan Chase initiated coverage on the stock with a recommendation of overweight and a price target of $35.
Edwards Lifesciences (EW) closed up more than +5% after reporting Q1 adjusted EPS of 78 cents, better than the consensus of 73 cents.
Procter & Gamble (PG) closed up more than +2% after reporting Q3 net sales of $21.24 billion, above the consensus of $20.50 billion.
Principal Financial Group (PFG) closed up more than +2% after reporting Q1 adjusted operating EPS of $2.07, better than the consensus of $2.01.
Charter Communications (CHTR) closed down more than -25%, leading losers in the S&P 500 and Nasdaq 100 after reporting Q1 EPS of $9.17, weaker than the consensus of $9.52.
Comcast (CMCSA) closed down more than -12% after Deutsche Bank downgraded the stock to hold from buy.
HCA Healthcare (HCA) closed down more than -9% after reporting Q1 net income of $1.62 billion, below the consensus of $1.63 billion.
Boyd Gaming (BYD) closed down more than -6% after reporting Q1 revenue of $997.4 million, below the consensus of $1 billion.
Eli Lilly (LLY) closed down more than -3% after weekly data showed total prescriptions for the company’s Zepbound obesity drug fell -2% compared to the prior week.
Earnings Reports(4/27/2026)
Alexandria Real Estate Equities (ARE), Amkor Technology Inc (AMKR), AvalonBay Communities Inc (AVB), Brixmor Property Group Inc (BRX), Brown & Brown Inc (BRO), Cadence Design Systems Inc (CDNS), Cincinnati Financial Corp (CINF), Crane Co (CR), Crown Holdings Inc (CCK), Domino's Pizza Inc (DPZ), Kilroy Realty Corp (KRC), NOV Inc (NOV), Nucor Corp (NUE), Public Storage (PSA), Simpson Manufacturing Co Inc (SSD), Sun Communities Inc (SUI), Universal Health Services Inc (UHS), Ventas Inc (VTR), Verizon Communications Inc (VZ).
