Major U.S. stock indexes headed toward their strongest monthly performances since 2020 as April drew to a close Thursday, buoyed by robust corporate earnings that offset turmoil in global energy markets.

The S&P 500 stood at around 7,165 midday, marking a gain of approximately 9.8% from its March 31 close of 6,528.52. The Nasdaq Composite traded near 24,860, up roughly 15.1% from 21,590.63 at the end of March. These advances positioned both indexes for their best April gains since 2020, when markets rebounded sharply from pandemic lows.

The rally capped a dramatic recovery from early-year losses tied to escalating U.S.-Iran tensions and broader Middle East conflicts. The S&P 500 had fallen nearly 8% through late March amid fears of prolonged disruptions. Hopes for de-escalation, combined with better-than-expected quarterly results, fueled the rebound.

Corporate America delivered resilient earnings, with nearly 90% of S&P 500 companies beating profit estimates in early reports. Strong results from tech giants like Nvidia, which reclaimed a $5 trillion market cap, propelled the Nasdaq to multiple record highs. Analysts raised 2026 earnings forecasts, with Citi projecting S&P 500 EPS at $324, reflecting sustained demand and efficiency gains.

This optimism persisted despite a historic oil supply shock. The International Energy Agency reported a 10.1 million barrels-per-day plunge in global supply to 97 million barrels per day in March, driven by attacks on infrastructure and Strait of Hormuz risks. April saw further strain, with inventories drawn down sharply and prices hovering near multi-week highs around $86 per barrel. Goldman Sachs forecasted a swing to a 9.6 million bpd deficit in Q2.

Investors largely shrugged off energy volatility, focusing instead on sectors like technology and semiconductors that led the charge. The S&P 500 notched records on April 24 at 7,165 and approached 7,174 recently. Year-to-date, the Nasdaq showed a 7% advance as of late April.

Looking ahead, strategists anticipate continued gains if earnings momentum holds and geopolitical risks ease. However, persistent oil tightness could pressure inflation and corporate margins in energy-sensitive industries.