Dow jumps 790 points as S&P 500 hits record on earnings boost

US stocks rallied on Thursday, with the Dow Jones Industrial Average surging nearly 800 points and the S&P 500 and Nasdaq both reaching fresh all-time highs, as strong corporate earnings helped investors look past geopolitical tensions in the Middle East.

The Dow rose 790 points, or 1.62%, while the S&P 500 gained 1.02% and the Nasdaq advanced 0.89%.

The rally capped a strong month for equities, with all three major indexes posting their best performances in years.

Earnings strength powers market rally

Investor sentiment was buoyed by upbeat earnings from key companies, particularly in industrials and technology.

Shares of Caterpillar jumped nearly 10% after the company reported better-than-expected quarterly results and raised its annual revenue outlook. The stock’s gains provided a significant lift to the Dow, with Caterpillar widely viewed as a bellwether for global economic activity.

Technology stocks also contributed to the advance. Alphabet Inc. rose roughly 10% after reporting strong first-quarter revenue and boosting its capital expenditure guidance to as much as $190 billion for 2026.

However, not all tech names participated in the rally. Meta Platforms fell around 7%, while Microsoft dropped about 4%, as investors reacted to rising artificial intelligence-related spending and concerns about capital intensity.

Economic data and oil prices in focus

Economic data released on Thursday offered a mixed but generally supportive backdrop for markets.

US gross domestic product expanded at a 2% annualised pace in the first quarter, up from 0.5% in the previous quarter, though slightly below expectations of 2.2%.

At the same time, jobless claims fell to their lowest level since 1969, pointing to continued labor market strength.

Oil prices, which had surged earlier in the week on concerns over supply disruptions linked to the US-Iran conflict, reversed course on Thursday.

Brent crude fell more than 3% to around $114 per barrel, while West Texas Intermediate declined to about $105.

Despite the pullback, crude remains elevated, with prices up roughly 60% since late February, reflecting ongoing geopolitical risks and supply constraints.

Strong monthly gains despite geopolitical tensions

Thursday’s rally helped cement a strong performance for US equities in April.

The S&P 500 is on track for a gain of more than 10% for the month, marking its best performance since November 2020.

The Nasdaq is heading for a jump of over 15%, its strongest showing since April 2020, while the Dow is set to rise more than 7%, its best month since November 2024.

At the same time, inflation remains a concern. Rising energy prices tied to the Middle East conflict have kept year-on-year inflation above 3%, complicating the outlook for Federal Reserve policy.

While geopolitical risks persist, the combination of strong earnings and resilient economic data has helped sustain bullish momentum in equities, at least for now.