The S&P 500 and Nasdaq both hit records on Thursday, even as Brent crude topped $110 a barrel and the U.S. said first-quarter GDP grew at a 2% annualized pace, below Wall Street’s forecast. That is the market in one line: bad headlines are still coming, but they are not overpowering earnings.
This section is really about a change in the market’s default setting. Investors are no longer treating Iran, energy, and softer data as separate shocks; they are pricing them as inputs the economy and corporate profits may absorb, at least for now. Apple’s results and other strong earnings gave traders cover to keep buying.
- U.S. stocks closed at fresh highs, with the S&P 500 above 7,200 for the first time and the Nasdaq at a new record.
- Brent briefly pushed to $126 after Iran-war escalation fears before settling back, a reminder that the oil market still holds the day-to-day volatility.
- The U.S. economy grew 2% in the first quarter, below expectations, even as investors chose strong earnings over weaker macro data.
That leaves a clean constraint for everyone else: the rally now depends on earnings staying strong enough to offset energy costs and geopolitical risk. If profits keep beating and oil stops climbing, stocks can keep shrugging off the headlines. If either breaks, the market will have to reprice the war and inflation faster than it has so far.
Australia and Japan are set to open higher, following the U.S. session, with futures on the ASX 200 and Nikkei pointing up. If Brent stays near triple digits, the question stops being whether traders believe the news and becomes whether earnings can keep paying for it.
