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

• Caterpillar beat earnings expectations and raised annual revenue guidance, while Alphabet reported strong Q1 revenue and boosted 2026 capex guidance to as much as $190 billion
• April marked exceptional monthly gains: S&P 500 up 10% (best since Nov 2020), Nasdaq up 15% (best since April 2020), and Dow up 7% (best since Nov 2024)
• US GDP grew 1.7% in Q1 and jobless claims hit their lowest since 1969, though oil prices remain elevated around $114/barrel for Brent crude and inflation persists above 3%

Market Summary: Major Indices Hit Records on Strong Earnings

Market Performance:

US equities surged Thursday, with the Dow Jones jumping 790 points (+1.62%), while the S&P 500 gained 1.02% and the Nasdaq advanced 0.89%. Both the S&P 500 and Nasdaq reached fresh all-time highs, capping exceptional monthly gains: S&P 500 up over 10% (best since November 2020), Nasdaq surging 15%+ (strongest since April 2020), and Dow rising 7%+ (best since November 2024).

Key Corporate Movers:

Caterpillar (CAT) drove the rally with a near-10% surge after beating quarterly expectations and raising its annual revenue outlook, serving as a positive indicator for global economic activity. Alphabet (GOOGL) climbed approximately 10% on strong Q1 revenue and significantly increased capital expenditure guidance to $190 billion for 2026, reflecting heavy AI infrastructure investment. However, Meta and other tech stocks declined as investors expressed concerns about elevated AI-related spending and capital intensity.

Economic Data:

Q1 GDP growth came in at an annualized rate slightly below the 2.2% forecast, up from 0.5% previously. Jobless claims hit their lowest level since 1969, signaling robust labor market conditions.

Commodities & Inflation:

Oil prices reversed earlier gains, with Brent crude falling over 3% to around $114/barrel and WTI declining to approximately $105/barrel, though prices remain elevated—up roughly 60% since late February due to US-Iran geopolitical tensions. Year-over-year inflation remains above 3%, driven by rising energy costs and complicating Federal Reserve policy decisions.

Market Outlook:

Despite ongoing geopolitical risks in the Middle East and inflation concerns, strong corporate earnings and resilient economic data continue supporting bullish equity momentum.