Apple’s Record Quarter Powers Nasdaq Past 25,000 — But the Fed’s 8-4 Split Sends a Warning

On Thursday, May 1, 2026, the U.S. stock market closed the session with a split verdict. Apple delivered its strongest March-quarter sales growth in more than four years, lifting the Nasdaq past 25,000 for the first time. But beneath the surface, the Federal Reserve just recorded its most divided vote since 1992 — and core inflation hit a 2.5-year high. For Asian and Korean investors waking up Saturday morning, the picture is more complicated than a single headline lets on.

In Europe, most major markets were closed for Labour Day. Only the UK’s FTSE 100 opened, and it retreated slightly as AstraZeneca’s FDA setback weighed on the index.

US Equities: Nasdaq Breaks 25,000 — But the Dow Pulls Back

Index Close Change %
S&P 500 7,230.12 +21.11 +0.29%
Nasdaq Composite 25,114.44 +222.13 +0.89%
Dow Jones 49,499.27 -152.87 -0.31%
Russell 2000 2,812.82 +12.92 +0.46%
VIX 16.99 +0.10 +0.59%

The Nasdaq’s breakout above 25,000 was driven almost entirely by Apple’s earnings reaction. The Dow lagged, weighed down by industrial names reacting to renewed inflation concerns. The modest VIX increase — still well below panic territory — suggests markets are absorbing uncertainty rather than fleeing it.

Apple: The Sharpest Rally in Nine Months

Apple (AAPL) was the standout of the session, staging its sharpest single-day rally in nine months after reporting Q2 FY2026 results after the close on April 30.

  • Revenue: $111.18 billion — a record for the March quarter, up +16.6% YoY
  • EPS (diluted): $2.01, up +21.8% YoY
  • iPhone revenue: ~$57 billion, up +21.7% YoYshoppers racing to buy updated iPhones and MacBooks
  • Greater China revenue: up +28% YoY, reversing two years of underperformance
  • Q3 FY2026 guidance: revenue growth of +14% to +17% — well above analyst consensus
  • Capital returns: dividend hike and expanded buyback announced
  • Stock: closed at $280.14, +$8.79 (+3.24%)

The headline from Benzinga put it simply: “Apple Delivers the Quarter Bulls Were Waiting For.”

CEO Tim Cook cited sustained iPhone 17 demand and Mac adoption for AI workloads. However, Cook also warned that memory constraints are intensifying, with Mac Mini supply backed up. Apple also quietly retired its net-cash-neutral financial target — a signal some analysts read as preparation for a major AI-related acquisition.

Other notable movers on May 1:

  • Cboe Global Markets +8.95%, Sandisk +8.25%, Seagate +7.91% (memory crunch beneficiaries)
  • Oracle +6.47%, Atlassian (TEAM), Roblox, Reddit, Twilio, Roku — all moved on earnings
  • Clorox -9.67%, Stryker -6.47%, Amgen -4.75% — dragged lower by guidance concerns

The Fed's 8-4 Vote: The Most Divided Since 1992

While markets celebrated Apple, the Federal Reserve delivered a more sobering message. The FOMC voted 8-4 to hold rates — the third consecutive pause following three cuts in late 2025 — and the statement’s language became a flashpoint.

Three regional presidents explained their dissenting votes:

  • Neel Kashkari (Minneapolis): Said the statement contained forward guidance “about the likely direction for monetary policy” that was “not appropriate” given current uncertainties.
  • Beth Hammack (Cleveland): Called the easing bias “no longer appropriate,” citing inflation pressures that “continue to be broad-based.”
  • Lorie Logan (Dallas): Said she was “increasingly concerned” about inflation returning to target, given that “the conflict in the Middle East raises the prospect of prolonged or repeated supply disruptions.”

A fourth dissenter, Governor Stephen Miran, voted in favor of an immediate rate cut.

The Core PCE reading released Thursday provided the backdrop: March core inflation hit 3.2% — its highest level since November 2023. The PCE is the Fed’s officially preferred inflation gauge, making this reading directly relevant to policy.

Europe: Only the FTSE 100 Was Open — and It Slipped

Continental Europe observed Labour Day on May 1. The DAX, CAC 40, FTSE MIB, AEX, and IBEX 35 were all closed.

The FTSE 100 opened in London and closed at 10,363.93 (-14.89, -0.14%) — a muted session dragged in part by AstraZeneca, which fell over 3% after a U.S. FDA advisory panel voted 6-3 against approving its oral breast cancer drug camizestrant. The near-term sentiment hit was real, though analysts noted the setback should not threaten AstraZeneca’s broader pipeline.

The UK 10-year gilt yield edged up to 4.969% (+0.008), as the Bank of England also held rates unchanged amid identical inflation-vs-growth tensions.

Macro Variables: Oil, Gold, and the Bond Market

Oil: The UAE Shock and the $102 Level

WTI crude settled at $102.50/barrel (-$2.57, -2.45%) on May 1, easing from recent highs. The drop came as markets digested the UAE’s shock withdrawal from OPEC effective May 1. Nevertheless, with Iran warning of further supply disruptions, elevated energy prices remain the biggest inflation input the Fed cannot control.

The WTI vs Brent spread has widened as Hormuz-related supply risk continues to price into Brent.

Gold: Headed for a Weekly Loss

Gold settled at $4,625.60/oz (-$4.00, -0.09%) on May 1, heading for a weekly loss of approximately 1.2%. Elevated oil prices are suppressing gold’s appeal by pushing rate-cut expectations further out. Silver outperformed, gaining +2.45% to $75.84/oz, partly driven by industrial demand signals from tech earnings.

Bonds

  • US 10-Year Treasury yield: 4.372% (-0.018) — slightly lower on the day despite hawkish Fed signals; Apple’s results kept risk appetite intact
  • UK 10-Year gilt: 4.969% (+0.008)

The yield curve remains a key watch point as the market tries to price in how long the “higher for longer” environment can hold given continued geopolitical supply shocks.

What Korea and Asia Should Watch Today (May 2)

  1. KOSPI opening reaction to Apple and Nasdaq. Samsung Electronics and SK Hynix will respond to Apple’s strong results and Tim Cook’s memory shortage warning — a two-sided signal. Apple demand is positive for Samsung’s mobile division; the memory crunch commentary could be read bullishly for Hynix.
  2. The Fed Funds Rate outlook repricing. The 8-4 vote — the most divided since 1992 — means the FOMC‘s forward guidance is now contested from within. A June cut expectation may shift to July or beyond.
  3. Oil above $100 and the BOK. Won weakness combined with $100+ oil is a stagflationary input for Korea’s inflation picture.
  4. Week of May 4–8: US Jobs Report. The April NFP report is the next major data point. Check the full economic calendar for the week’s schedule.
  5. Continental Europe reopens Monday (May 4). The DAX, CAC 40, and others will react to the full week’s accumulation — Apple, the Fed vote, core PCE 3.2%, and UAE-OPEC news — all at once.

Key Sources


If any of today’s data points raise questions — whether on the Fed’s policy path, oil dynamics, or inflation trends — ECONPLEX has the live data and explainers behind each.

→ Live Federal Funds Rate tracker  · 
Core PCE tracker  · 
This week's economic calendar

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