S&P 500, Nasdaq Rise on Strong Earnings and Weakening Crude Oil

U.S. equity markets climbed as strong corporate earnings and softer crude oil prices supported a broad advance; the S&P 500 and Nasdaq 100 reached fresh highs while futures pointed higher into the session.

Technology and software results underpinned the move: Apple reported better-than-expected quarterly revenue and raised forward guidance, sending the stock up more than 4%, while Atlassian topped revenue forecasts and jumped over 20%. At the same time, WTI crude futures fell more than 3% intraday after reports of diplomatic progress, temporarily relieving inflation concerns.

Market internals showed record-level breadth for the major indices, with S&P and Nasdaq futures gaining and 10-year Treasury yields easing modestly — a pattern consistent with risk-on flows when inflation expectations cool. However, the ISM manufacturing report was mixed: the headline was softer than forecast while the 'prices paid' sub-index rose to a multi-year high, keeping inflation dynamics in focus.

In the wider context, ongoing tensions in the Middle East and disruptions around the Strait of Hormuz continue to influence energy markets; large banks have flagged significant stockdraws tied to the supply shock, and these dynamics could push crude prices higher if disruptions persist. Meanwhile, market-implied odds show limited probability of an imminent Fed rate cut and elevated chances of ECB action, factors that investors must price into risk assets.

Strategists say the current rally is being sustained by better-than-expected earnings but caution that a sustained rise in oil or a resurgence in inflation could prompt sector rotation and volatility. Investors will watch upcoming earnings, macro releases and oil developments to gauge whether the advance can persist into the traditionally weaker May–October period.