Wall Street hit a new record Thursday, with the S&P 500 closing above 7,200 for the first time, even as oil prices lurched higher on fears of a military confrontation with Iran and U.S. economic growth came in below expectations.
The S&P 500 gained 1.02% to close at 7,209.01. The Nasdaq Composite also hit new intraday and closing records, rising 0.89%. The Dow Jones Industrial Average added 1.62%. Strong earnings from Apple and Caterpillar drove much of the optimism, helping investors look past a GDP report that missed forecasts.
The Commerce Department said the U.S. economy grew at a 2% annualized pace in the first quarter, up from 0.5% in the fourth quarter of 2025 but below the 2.2% consensus estimate from Wall Street economists.
Oil markets moved sharply on geopolitical news. Brent crude briefly surged to $126 a barrel after Axios reported that the U.S. military would brief President Donald Trump on potential action against Iran. Prices pulled back from that peak: Brent's June contract settled at $114.01, and the July delivery contract closed at $110.40. West Texas Intermediate was up 0.61% at $105.71 as of Thursday evening.
Asian markets followed Wall Street's lead Friday, though trading was thin with most major markets closed for the May Day holiday. Japan's Nikkei 225 climbed 0.38% to 59,513.12. Australia's S&P/ASX 200 rose 0.74% to close at 8,729.8, snapping an eight-session losing streak.
The Japanese yen was also in focus. Tokyo intervened in currency markets Thursday to support the yen after it breached the 160 level against the dollar, hitting a two-year high of 160.72. By Friday the yen had strengthened to 156.56. According to Bloomberg, the yen's correlation with oil prices had reached its highest level since 2021 before the intervention, reflecting how closely Japan's currency had tracked energy market swings given the country's heavy reliance on oil imports.
U.S. futures were modestly higher after Thursday's session. S&P 500 futures advanced 0.16%, Nasdaq 100 futures were little changed, and Dow futures added roughly 79 points.
