Dow Surges 790 Points as S&P 500, Nasdaq Hit Record Highs
Wall Street closed April on a strong note with record highs across major indexes. The Dow surged 790 points, while the S&P 500 and Nasdaq hit new milestones. Strong earnings from Caterpillar and Alphabet fueled gains, despite weakness in major tech stocks. April delivered exceptional returns, though inflation concerns and slowing economic growth remain key watchpoints for the Federal Reserve.
Dow Surges 790 Points as S&P 500, Nasdaq Hit Record Highs
Wall Street ended April with a bang. Records fell. Confidence returned. And two unlikely heroes stole the show.
The Dow Jones Industrial Average surged 790.33 points, or 1.62%, to settle at 49,652. The S&P 500 climbed 1.02% to close at 7,209, its first close ever above the 7,200 threshold. The Nasdaq Composite rose 0.89% to 24,892, also hitting a fresh record closing high.
It was a fitting end to a remarkable month.
The S&P 500 climbed more than 10% in April, its best monthly performance since November 2020. The Nasdaq surged over 15% for the month, its strongest showing since April 2020. Those are once-in-a-year numbers. Back to back.
Caterpillar was the story of the day for the Dow. The construction and industrial giant reported stronger-than-anticipated first-quarter earnings driven by solid demand in its power energy segment, which supplies AI data centers. It raised its full-year revenue forecast to low double-digit percentage growth, up sharply from a prior outlook of roughly 7%. The stock popped nearly 10%.
Then came Alphabet. The Google parent reported first-quarter revenue of $109.9 billion, beating estimates of $107.2 billion. Google Cloud revenue surged 63% year over year. The company also raised its full-year capital expenditure guidance to $190 billion and hiked its quarterly dividend by 5%. Shares jumped 10%.
Not everyone won, though. Meta fell 8.55%, Microsoft dropped 3.93%, and Nvidia slid 4.63% after earnings, limiting broader upside for tech indices. Even on a record day, the Magnificent Seven delivered a mixed bag.
Oil offered some relief. Brent crude fell over 3% to close at $114 a barrel, pulling back from elevated levels driven by the ongoing US-Iran conflict. Lower oil prices helped 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 came in at 3.2% year over year. Growth is holding. But inflation is not gone yet. The Fed will be watching every number closely from here.
April is closed. The bulls dominated. May begins now, and the pressure to keep delivering is real.