US Stock Market Hits Records as Apple, Estee Lauder, and Others Surpass Earnings Expectations

May 4, 2026 — The U.S. Stock market closed at new record highs on Friday, May 2, 2026, as a wave of companies—including Apple, The Estée Lauder Companies, and others—delivered stronger-than-expected earnings for the first quarter of 2026. The S&P 500 rose 0.3% to its latest all-time high, closing out a fifth consecutive winning week, its longest streak since 2024. The Nasdaq composite also hit a record, while the Dow Jones Industrial Average dipped slightly. The rally underscores a broader trend: corporate profits are outpacing expectations, even amid geopolitical tensions and macroeconomic uncertainty.

Apple Leads the Charge with Strong Q2 Results and Bullish Guidance

Apple reported revenue growth of 17% to $111.18 billion in its fiscal second quarter, exceeding analyst estimates of $109.66 billion. The company also issued guidance for the fiscal third quarter, projecting revenue growth between 14% and 17%—far above the 9.5% analysts had anticipated. CEO Tim Cook attributed the growth to strong demand for the iPhone 17 lineup and Mac computers, including the newly released MacBook Neo, which he described as having higher-than-expected demand. Apple’s shares surged more than 3% on the news, contributing significantly to the S&P 500’s record close.

Despite ongoing supply constraints due to the global memory crunch, Apple’s gross margin reached 49.3% in the latest quarter, up from 48.2% in the prior period. The company’s services segment, which includes Apple Pay, iCloud, and Apple TV+, also saw revenue rise 16% to $30.98 billion. Analysts at Morgan Stanley raised their earnings per share projection for the fiscal year to $8.89, citing Apple’s ability to manage margins effectively.

Cook, who is set to step down as CEO in September after 15 years at the helm, acknowledged the challenges posed by the memory crunch but emphasized the company’s ability to adapt.

We’ll look at a range of options to address soaring memory costs, he said, noting that the trend is expected to intensify.

Tim Cook, Apple CEO

The Estée Lauder Companies: Double-Digit Growth and Optimistic Outlook

The Estée Lauder Companies reported double-digit net sales growth in fragrance for the first nine months of fiscal 2026, with three of its four geographic regions showing growth, led by Mainland China. The company raised its full-year fiscal 2026 outlook, anticipating organic sales growth at the high conclude of its prior range and adjusted operating margin expansion approaching 300 basis points. CEO Stéphane de La Faverie highlighted the success of its Beauty Reimagined initiative, which has driven momentum across all five action plan priorities.

For fiscal 2027, The Estée Lauder Companies shared a preliminary view of net sales growth between 3% and 5% and an adjusted operating margin of 12.5% to 13%. The company’s stock climbed 3.4% following the earnings report, reflecting investor confidence in its turnaround strategy.

Broader Market Trends: Profits Outpace Expectations Amid Volatility

More than a quarter of the companies in the S&P 500 have reported earnings so far this quarter, and 84% have topped analyst estimates, according to FactSet. The index is on track for roughly 15% profit growth year-over-year, a testament to resilient corporate performance despite challenges such as the Iran war and elevated oil prices.

Easing oil prices played a role in stabilizing global markets on Friday, with Brent crude settling at $108.17—a decline from earlier in the week. While oil companies like Exxon Mobil and Chevron reported stronger profits, their stocks dipped slightly as oil prices retreated. Meanwhile, the 10-year Treasury yield fell to 4.38%, easing borrowing costs for consumers and businesses and providing a tailwind for equities.

Internationally, Tokyo’s Nikkei 225 rose 0.4%, while London’s FTSE 100 slipped 0.1%. The global rally reflects a broader optimism about corporate earnings, even as geopolitical risks linger.

Key Takeaways

• Apple’s strong earnings and guidance drove the S&P 500 to a new record high, with revenue growth of 17% in Q2 and a bullish outlook for Q3.
• The Estée Lauder Companies reported double-digit growth in fragrance and raised its full-year outlook, citing success in China and its Beauty Reimagined strategy.
• 84% of S&P 500 companies reporting so far have exceeded earnings expectations, signaling robust corporate performance.
• Easing oil prices and lower Treasury yields provided additional support to global markets.
• Geopolitical risks remain, particularly around oil supply, but investor confidence in earnings has kept markets buoyed.

Looking Ahead: What’s Next for the Market?

As the market continues to set records, analysts and investors will be closely watching:

• Apple’s ability to manage supply chain challenges, particularly the memory crunch, as it prepares for the transition to a new CEO.
• The Estée Lauder Companies’ execution of its Beauty Reimagined strategy and performance in emerging markets like China.
• Macroeconomic indicators, including oil prices, inflation, and interest rate trends, which could impact consumer spending and corporate profitability.
• Further earnings reports from major companies, particularly those in the technology and consumer sectors.

The recent market performance suggests that corporate resilience is outweighing near-term risks, but investors will need to remain vigilant as geopolitical and economic conditions evolve.