* Indexes: Dow flat, S&P 500 up 0.58%, Nasdaq up 1.07%

* Apple ( AAPL ) climbs on strong forecast

* Software stocks gain after Atlassian ( TEAM ) raises outlook

* Roblox ( RBLX ) plunges after slashing bookings forecast

(Updates with afternoon trading)

By Niket Nishant and Utkarsh Hathi

May 1 (Reuters) - The benchmark S&P 500 and the Nasdaq

Composite touched record highs on Friday and were on course for

their longest weekly winning streaks since 2024 as strong

corporate earnings helped investors look past inflation risks.

Sentiment was boosted after a report from Iranian state

media said Tehran had sent its latest proposal for negotiations

with the United States to Pakistani mediators on Thursday.

Friday's session wraps up a heavy week of Big Tech earnings

and economic data. Analysts now see S&P 500 first-quarter

earnings growth at 27.8% - the fastest pace since the fourth

quarter of 2021 and up from 16.1% last week, according to LSEG

IBES data.

Markets will wait to see if the rally holds in May,

historically the start of a weaker six-month stretch for stocks.

Since 1945 through April 2026, the S&P 500 has gained an

average of about 2% from May to October, according to data from

Fidelity. That compares with an average gain of about 7% from

November through April.

However, the May-to-October period has seen more solid

returns in the last decade, suggesting the strategy to "sell in

May and go away" is not without risks.

CONCERN OVER AI SPENDING PLANS

Economic data released this week raised fears the equity

buying frenzy was due for a reality check.

Although U.S. economic growth regained momentum in the first

quarter, consumer spending, the economy's main growth engine,

decelerated, while the personal savings rate declined,

suggesting households tapped into savings to support outlays.

"If we see persistently high oil prices for a prolonged

period of time, that will increase transportation costs and the

cost of manufacturing goods, which will cascade into higher

prices overall," said Devin Cattelan, portfolio manager at

Verecan Capital Management.

U.S. manufacturing activity was steady in April, but

supplier delivery performance worsened as the Middle East

conflict disrupted shipping in the Strait of Hormuz, boosting

prices for raw materials and other inputs to a four-year high.

Adding to the unease, U.S. President Donald Trump said he

would increase tariffs on cars and trucks from the European

Union to 25%, saying the EU had not complied with its trade

deal.

At 12:17 p.m. ET, the Dow Jones Industrial Average

was flat, the S&P 500 rose 42.15 points, or 0.58%, to

7,251.16, and the Nasdaq Composite gained 266.35 points,

or 1.07%, to 25,158.67.

Six of the 11 main S&P sectors were in the green, with the

S&P 500 information technology sector gaining the most

with a 1.6% rise.

The S&P 500 ended April with its biggest monthly

percentage gain since November 2020, while the Nasdaq Composite

advanced the most since April 2020. The Dow's monthly

rise was its biggest since November 2024.

Apple ( AAPL ) jumped 4.8% after robust demand for its

flagship iPhone 17 and MacBook Neo led the company to forecast

solid sales growth for the fiscal third quarter.

Software companies climbed after Atlassian ( TEAM ) lifted

its annual forecast. The enterprise software maker surged 22.6%.

Peers Salesforce ( CRM ) and ServiceNow ( NOW ) added 3.2%

and 2.3%, respectively. Datadog ( DDOG ) rose 6.4% and Workday

gained 3.1%.

Other major movers included Roblox ( RBLX ), which fell

17.5% following a cut in its annual bookings forecast. Reddit ( RDDT )

gained 12.7% after an upbeat quarterly revenue

forecast.

Advancing issues outnumbered decliners by a 1.42-to-1 ratio

on the NYSE and by a 1.73-to-1 ratio on the Nasdaq.

The S&P 500 posted 42 new 52-week highs and eight new lows,

while the Nasdaq Composite recorded 116 new highs and 37 new

lows.