Dow Surges 790 Points as S&P 500, Nasdaq Hit Record Highs

Wall Street ended April with a record-breaking performance. The Dow Jones Industrial Average surged 790.33 points, reaching 49,652, marking a 1.62% increase. The S&P 500 climbed 1.02% to close above 7,200 for the first time ever, while the Nasdaq Composite rose 0.89% to 24,892, also hitting a record high. April saw the S&P 500 gain over 10% and the Nasdaq surge over 15%, the strongest monthly performances since April 2020. Caterpillar led Dow gains with stronger-than-expected first-quarter earnings, driven by demand in its power energy segment supplying AI data centers. The company raised its full-year revenue forecast to low double-digit growth, up from roughly 7%. Its stock surged nearly 10%. Alphabet (Google) reported first-quarter revenue of $109.9 billion, beating estimates of $107.2 billion. Google Cloud revenue grew 63% year over year, and the company raised its full-year capital expenditure guidance to $190 billion while increasing its quarterly dividend by 5%. Shares jumped 10%. However, not all tech stocks performed well. Meta fell 8.55%, Microsoft dropped 3.93%, and Nvidia slid 4.63% after earnings, limiting broader tech gains. The Magnificent Seven showed mixed results. Oil prices saw a slight decline, with Brent crude falling over 3% to $114 a barrel, easing pressure from the US-Iran conflict. Lower oil prices supported consumer and industrial sentiment. The U.S. economy grew at a 2% annualized pace in Q1, slightly below the 2.2% forecast. Core PCE inflation remained at 3.2% year over year. While growth is holding, inflation remains a concern, and the Federal Reserve will continue monitoring economic data closely. The bullish momentum continued into May, with market participants under pressure to sustain strong performance.