S&P 500’s Strong May Footing Powered by Apple, SanDisk, and Easing Oil

By Gerelyn Terzo Published May 1, 9:12AM EDT

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Apple (AAPL) reported fiscal Q2 revenue of $111.18B (up 17%) and EPS of $2.01 beating expectations, marking its 8th consecutive beat, while authorizing a $100B buyback and raising its dividend 4%.
SanDisk (SNDK) crushed estimates with revenue of $5.95B and EPS of $23.41 versus $14.50 expected, with adjusted gross margin reaching 78%, and shares up 73% over the past month as CEO David Goeckeler cited a fundamental inflection point in datacenter mix shift.

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S&P 500’s Strong May Footing Powered by Apple, SanDisk, and Easing Oil — © Hodoimg / Shutterstock.com

The S&P 500 (^GSPC) clinched 7,200 for the first time ever yesterday, capping its best month since November 2020, and the index is set to open May trading on a high note. Apple’s blowout earnings, a memory chip windfall at SanDisk, and falling oil combine into one of the friendliest setups stocks have seen all year. Apple’s (NASDAQ:AAPL | AAPL Price Prediction) blowout fiscal Q2 report is the headline driver of premarket sentiment, while crude oil is sliding on Middle East de-escalation reports. The S&P 500 (^GSPC) finished April up more than 10%, its best month since 2020, and U.S. stocks have added over $10 trillion in market cap over the past 30 days.

Apple, SanDisk, and the AI memory trade

Apple did the heavy lifting after Thursday’s close. Apple (NASDAQ:AAPL) reported fiscal Q2 revenue of $111.18 billion (up about 17%) and EPS of $2.01 versus $1.94 expected, its 8th straight beat. Tim Cook told Reuters iPhone demand was “off the charts”, and the company authorized a fresh $100 billion buyback while raising the dividend 4% to $0.27. AAPL closed at $271 and pushed about 3% higher in the first hour after the earnings report.

The datacenter trade got another shot. SanDisk (NASDAQ:SNDK) crushed estimates with revenue of $5.95 billion and EPS of $23.41 vs $14.50 expected, with adjusted gross margin reaching about 78%. CEO David Goeckeler called it a “fundamental inflection point” tied to datacenter mix shift. Shares are up 73% over the past month.

Oil eases, Pentagon adds AI fuel

WTI crude slipped to $103, down nearly 2% on the day, taking some sting out of the inflation backdrop. The VIX sat near 19, squarely in the normal range. Bloomberg reported the Pentagon signed deals to deploy classified-network AI from NVIDIA (NASDAQ:NVDA), Amazon (NASDAQ:AMZN) Web Services, and Microsoft (NASDAQ:MSFT), reinforcing the federal AI spend story. Alphabet (NASDAQ:GOOGL) also helped, rallying 10% Thursday on its own Cloud-driven beat.

What it means for your portfolio

Breadth is the swing factor. The risk: this rally is leaning on a handful of mega-caps. The S&P 500 equal weight index rose less than 6% in April, roughly half the cap-weighted gain, meaning the rally still leans on a handful of mega-caps. Watch whether Apple’s follow-through can pull laggards along, and any further crude moves tied to Middle East headlines. Two Fed officials, Beth Hammack and Neel Kashkari, also pushed back on this week’s dovish FOMC tone, citing oil-driven inflation risk. That keeps May’s rate path live even with stocks at records.

About the Author Gerelyn Terzo →

Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.