NEW YORK, May 1 — Oil prices struck a four-year high yesterday on worries about a resumption of hostilities in the Middle East, before slumping to end the day.

But key US indices hit new records while European stock markets rose on positive earnings reports from some tech firms.

On Wall Street, the S&P 500 jumped 1.0 percent and the tech-heavy Nasdaq Composite Index added 0.9 percent, both reaching all-time highs.

This came on the back of optimism surrounding corporate earnings and still-resilient US economic growth.

“A lot of that comes down to corporate profits,” said Angelo Kourkafas of Edward Jones.

He added that US GDP data “continues to defy fears of a near-term slowdown,” helping to propel stocks to new highs.

The US Commerce Department estimated earlier Thursday that the world’s biggest economy grew by an annual rate of 2.0 percent in the first three months of 2026.

A key factor was a surge in artificial intelligence investments, although consumer spending cooled.

Tech turbulence 

International benchmark Brent crude soared to $126 a barrel, but closed 3.4 percent down eventually at $114.01.

Still, this is significantly higher than its price before US-Israel strikes targeting Iran since February 28.

Markets were jolted after President Donald Trump warned the US blockade of Iranian ports could last months, and by a report that he would be briefed on potential fresh military strikes.

“Fears about escalation in the conflict between the US and Iran fueled the initial move higher before the market calmed down,” said XTB research director Kathleen Brooks.

The expiry of monthly contracts also added to volatility.

The main European stock markets closed higher, taking their cue from largely positive earnings reports from US tech companies.

Shares in Google parent company Alphabet closed 10 percent up as investors lauded the company’s success in making the pivot to artificial intelligence and solid revenue across its major divisions.

But shares in Meta slumped 8.6 percent amid concerns about its huge AI spending.

Apple reported after the closing bell, with earnings that beat forecasts on a boost from iPhone demand. The company’s shares were up 4.7 percent in after-hours trading.

Central banks remained a focus on Thursday, a day after the Federal Reserve kept interest rates unchanged as the United States faces elevated inflation triggered by the Middle East war.

The European Central Bank and Bank of England also both held rates steady.

But the ECB warned that risks to eurozone growth and the inflation outlook have “intensified” because of the war and its impact on global energy supplies.

The Bank of England cut its forecast for UK growth.

Data released Thursday showed that growth in the eurozone economy slid to 0.1 percent in the first quarter.

The yen shot more than two percent higher against the dollar after Japan’s finance minister hinted strongly that Tokyo was close to intervening in the market to support the currency.

Key figures at 2130 GMT 

Brent North Sea Crude: DOWN 3.4 percent to $114.01 a barrel West Texas Intermediate: DOWN 1.7 percent at $105.07 a barrel New York - Dow: UP 1.6 percent at 49,652.14 points (close) New York - S&P 500: UP 1.0 percent at 7,209.01 (close)

New York - Nasdaq Composite: UP 0.9 percent at 24,892.31 (close)

London - FTSE 100: UP 1.6 percent at 10,378.82 (close)

Paris - CAC 40: UP 0.5 percent at 8,114.84 (close)

Frankfurt - DAX: UP 1.4 percent at 24,140.59 (close)

Tokyo - Nikkei 225: DOWN 1.1 percent at 59,292.38 (close)

Hong Kong - Hang Seng Index: DOWN 1.3 percent at 25,776.53 (close)

Shanghai - Composite: UP 0.1 percent at 4,112.16 (close)

Euro/dollar: UP at $1.1731 from $1.1695 on Wednesday

Pound/dollar: UP at $1.3602 from $1.3489

Dollar/yen: DOWN at 156.60 yen from 160.23 yen

Euro/pound: DOWN at 86.25 pence from 86.71 pence — AFP