S&P 500, Nasdaq hit records as AI stocks surge

The S&P 500 and Nasdaq reached new record highs on April 2026, led by gains in AI-driven stocks. Nvidia rose 1.8%, while Micron Technology and Sandisk each climbed over 15%, reflecting strong demand for AI data center infrastructure. The Philadelphia Semiconductor Index surged 55% in the second quarter, underscoring sector momentum. Investors focused on robust first-quarter earnings, with S&P 500 profits projected to grow nearly 29% year-over-year, driven largely by AI-focused companies. A stronger-than-expected April jobs report—showing employment growth and a steady 4.3% unemployment rate—reinforced expectations that the Federal Reserve would keep interest rates unchanged at 3.50%–3.75% through the year. The S&P 500 closed at 7,398.93 (+0.84%), the Nasdaq at 26,247.08 (+1.71%), and the Dow Jones at 49,609.16 (+0.02%). The tech-heavy S&P 500 index jumped 2.7%, while utilities fell 0.9%. This marked the sixth straight weekly gain for the S&P 500 and Nasdaq, the longest streak since October 2024, with the Nasdaq up 13% in 2026. Despite Middle East tensions—including U.S.-Iran escalations and Brent crude surpassing $100—a majority of S&P 500 companies (83%) beat earnings estimates, though some tech firms struggled. Cloudflare dropped 24% after announcing layoffs and a revenue miss, while Expedia fell 9% due to weakened travel demand from the conflict. The S&P 500 saw 28 new highs and 30 new lows, with Nasdaq recording 134 highs and 119 lows. Trading volume was light at 17.2 billion shares, slightly below the 20-session average. The market’s resilience highlighted strong corporate performance, though geopolitical risks and select earnings disappointments created mixed signals for investors.