Global equities held a positive tone in the week of Apr 27–May 2 as earnings and AI helped US stocks hit new records despite oil risks

📌 Global equities were volatile last week, but the overall tone remained positive, with the US market staying in focus thanks to strength in technology, AI and Q1 earnings. The S&P 500 closed around 7,230.12, while the Nasdaq broke above 25,000 and reached 25,114.44. The Dow Jones was weaker, showing a clear divergence between growth stocks and traditional sectors.
💡 The rally was not driven only by short-term optimism, but also supported by strong corporate results. Earnings beats remained high, while Big Tech and semiconductors continued to lead the market. This helped US equities look through near-term geopolitical risks.
⚠️ Still, the risk backdrop has not disappeared. US–Iran tensions and the risk of disruption around the Strait of Hormuz kept Brent crude fluctuating near the $102–108/bbl range, forcing markets to reassess input-cost inflation and the possibility that the Fed may stay cautious for longer.
🔎 Europe was less impressive than the US, pressured by energy costs, weaker growth signals and the May 1 holiday in several markets. Asia was mixed, with Japan remaining a relative bright spot, while China and Hong Kong still lacked clear momentum despite improving industrial profit data.
⏱️ Capital flows showed some signs of broadening into energy, materials, small caps and parts of emerging markets, but the core of the trend still came from tech/AI. This suggests the bull market is becoming broader, although not enough to say concentration risk around mega-cap stocks has fully faded.
✅ Heading into May 5–9, US labor data, ISM services, Treasury yields and oil prices will be the key variables. If earnings remain solid and oil does not escalate further, the S&P 500 and Nasdaq still have room to test new highs. On the other hand, persistently high oil prices or a sharp rise in yields could trigger short-term profit-taking in growth stocks.
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