Weekly Wrap

The stock market delivered another strong advance this week, with equities moving back into record territory as falling oil prices, improving geopolitical conditions, and powerful leadership from mega-cap and technology stocks drove index-level gains.

The macro backdrop steadily improved throughout the week. While early uncertainty lingered after the U.S. and Iran failed to secure a more durable agreement over the weekend, sentiment shifted as renewed talks were signaled and the existing ceasefire held. By Friday, news that the Strait of Hormuz would reopen during the ceasefire period, along with reports of upcoming negotiations in Pakistan, marked a meaningful de-escalation.

Crude oil responded decisively, extending its weekly decline to roughly $12 per barrel and settling below $85. That sharp drop helped ease inflation concerns and improve the outlook for potential rate cuts, reinforcing a supportive environment for equities.

Against that backdrop, the S&P 500 (+4.5%), Nasdaq Composite (+6.8%), and DJIA (+3.2%) all posted strong week-to-date gains, with the Nasdaq’s significant outperformance underscoring the market’s rotation back into growth and AI-driven leadership.

Participation broadened notably beneath the surface. The Russell 2000 (+5.6%) and S&P Mid Cap 400 (+3.5%) both advanced solidly, with small caps outperforming the broader market as risk appetite strengthened alongside improving macro conditions.

Sector performance reflected a clear risk-on tone. Growth-oriented areas led decisively, with information technology (+8.1%), communication services (+6.3%), and consumer discretionary (+6.6%) posting outsized gains. The iShares Expanded Tech-Software ETF (IGV) surged 13.9% for the week, marking a sharp reversal from prior weakness and reestablishing software as a leadership group.

Semiconductor stocks also contributed meaningfully, with the PHLX Semiconductor ETF rising 7.5%, reinforcing the strength of the broader AI trade. Meanwhile, the Vanguard Mega Cap Growth ETF climbed 7.3%, highlighting the continued importance of mega-cap leadership in driving index-level performance.

Outside of growth, cyclical participation improved as falling oil prices provided a tailwind. Financials (+3.3%) and real estate (+3.8%) advanced, while industrials (+1.2%) posted more modest gains. In contrast, defensive sectors lagged, with utilities (-1.7%) and consumer staples (flat) reflecting reduced demand for safety. The energy sector (-3.4%) was the clear underperformer, pressured by the sharp decline in crude prices.

All told, this week reinforced the market’s strong upward momentum. A combination of easing geopolitical tensions, sharply lower oil prices, and renewed leadership from both mega-cap technology and previously lagging areas has strengthened the foundation of the rally. With participation broadening and key growth segments reasserting dominance, the market appears increasingly well-supported as it pushes deeper into record territory.

• Nasdaq Composite: +6.8% week-to-date
• Russell 2000: +5.6% week-to-date
• S&P 500: +4.5% week-to-date
• S&P Mid Cap 400: +3.5% week-to-date
• DJIA: +3.2% week-to-date

Monday:

The stock market started the week on a solid note, with the major averages trading higher throughout the session as tech leadership, broadening strength, and an intraday pullback in oil prices helped offset opening weakness tied to weekend geopolitical headlines. Today's steady upward climb pushed the S&P 500 back into positive territory for the year, and saw the index reclaim all of its losses since the start of the war in Iran.

The S&P 500 (+1.0%), Nasdaq Composite (+1.2%), and DJIA (+0.6%) opened to broad losses on the heels of the U.S. and Iran failing to agree to a more durable ceasefire this weekend. Additionally, President Trump announced a blockade of all ships entering and leaving Iranian ports.

However, the early losses quickly began to fade, suggesting that the market remains confident that a potential end to the conflict could be imminent and that it will spur a sharp upward move across equities.

This afternoon, CNN reporter Alayna Treene posted on X that the Trump administration is discussing "a potential second, in-person meeting with Iranian officials before the ceasefire between Washington & Tehran expires next week," reinforcing hopes for a near-term off-ramp.

The major averages were supported by a strong showing from the information technology sector (+1.3%), which was one of the first S&P 500 sectors to move into positive territory this morning. Software stocks garnered a strong buy-the-dip rebound from Friday's selloff that came amid renewed fears of AI disruption. Oracle (ORCL 155.64, +17.54, +12.71%) was the top-performing S&P 500 component today, and the iShares GS Software ETF finished 5.4% higher.

Microsoft (MSFT 384.37, +13.50, +3.64%) was a mega-cap standout amid a solid session for the market's heavyweights, which pushed the Vanguard Mega Cap Growth ETF 1.5% higher.

The financials sector (+1.7%) was the other notable outperformer in today's session, supported by broad strength that saw only Goldman Sachs (GS 890.79, -17.01, -1.87%) finish in negative territory. The company topped earnings estimates, but succumbed to some "sell the news" pressure after an impressive run-up to its earnings report over the last month. However, the company's record performance in Global Banking & Markets, combined with industry-leading M&A and equity underwriting activity, signals a meaningful rebound in capital markets and advisory demand, a positive read-through for peers as earnings season unfolds.

Elsewhere, the consumer discretionary (+0.9%) and communication services (+0.8%) sectors notched similar gains as mega-cap stocks charted fresh highs throughout the afternoon.

Only the defensive utilities (-1.2%) and consumer staples (-1.0%) sectors finished lower. Conagra (CAG 14.51, -0.67, -4.41%) was one of the worst-performing S&P 500 names after announcing that CEO Sean Connolly will step down on May 31, 2026, with John Brase set to take over as President and CEO effective June 1.

While the energy sector (+0.3%) managed a modest gain, it retreated sharply from its earlier highs in tandem with oil prices. WTI crude oil reached an overnight high of around $105 per barrel, but crude oil futures settled today's session $2.42 higher (+2.5%) at $98.97 per barrel.

Outside of the S&P 500, the Russell 2000 (+1.5%) outperformed as the market leaned into a risk-on tone throughout the session, while the S&P Mid Cap 400 (+1.1%) captured a gain similar to that of the major averages.

Today's action underscores the enthusiasm across the market that has pushed the major averages considerably higher over the past two weeks. Oil prices are stabilizing, and the mega-caps are reasserting their leadership, which has quickly negated losses incurred since the start of the Iran war. While volatility in oil prices will likely continue to cause price swings in the near term, the market's resilience highlights a willingness to look past near-term macro developments as the Q1 earnings season ramps up.

U.S. Treasuries began the week with modest gains across the curve as the market maintained some overall optimism even though U.S.-Iran negotiations failed to produce a peace deal over the weekend. The 2-year note yield settled down two basis points to 3.78%, and the 10-year note yield settled down two basis points to 4.30%. 

Reviewing today's data:

• Existing home sales decreased 3.6% month-over-month in March to a seasonally adjusted annual rate of 3.98 million (Briefing.com consensus 4.01 million) from an upwardly revised 4.13 million (from 4.09 million) in February. Sales were down 1.0% on a year-over-year basis.
  
  • The key takeaway from the report is that existing home sales were pressured at the start of the peak selling period by higher mortgage rates, higher prices, limited inventory, lower consumer confidence, and softer job growth.

Tuesday:

The stock market continued its strong start to the week as a sharp retreat in oil prices created a favorable backdrop for equities, while mega-cap stocks provided an additional boost by extending yesterday's rally. The S&P 500 (+1.2%), Nasdaq Composite (+2.0%), and DJIA (+0.7%) posted gains that were nearly identical to yesterday's advance, with the major averages now all in positive year-to-date territory.

Lingering optimism around a more permanent ceasefire continues to support the market's sharp rebound over the past several weeks. President Trump told The New York Post that in-person negotiations between the U.S. and Iran could occur within the next two days.

So far, the temporary ceasefire and the U.S. blockade of Iranian ports are holding. Crude oil futures settled today's session $7.66 lower (-7.7%) at $91.31 per barrel.

Today's advance was supported by broad-based strength, with all but the energy (-2.2%), materials (-0.3%), and consumer staples (-0.2%) sectors finishing higher.

Growth-oriented areas led the way, with communication services (+3.2%) and consumer discretionary (+2.5%) sectors posting outsized gains behind continued mega-cap leadership. Meta Platforms (META 662.46, +27.92, +4.40%) was a "magnificent seven" standout, while Amazon (AMZN 248.97, +9.08, +3.79%) traded higher after reports that the company is set to acquire Globalstar (GSAT 79.91, +7.02, +9.63%).

NVIDIA (NVDA 196.46, +7.15, +3.78%) captured a similar gain, and the information technology sector (+1.7%) also finished near the top of today's leaderboard. Micron (MU 465.66, +39.10, +9.17%) was one of the best-performing S&P 500 names today, and the PHLX Semiconductor Index (+2.0%) steadily charted session highs throughout the session.

All told, the Vanguard Mega Cap Growth ETF finished 2.0% higher, helping the market-weighted S&P 500 (+1.2%) outperform the S&P 500 Equal Weighted Index (+0.4%).

Elsewhere, investors had plenty of earnings and corporate news items of note today. The financials sector (+0.2%) captured a modest gain as the market had mixed reactions to the earnings reports of several major banking names. Citigroup (C 129.65, +3.37, +2.67%) was a standout after topping earnings expectations and issuing upside Net Interest Income guidance, while JPMorgan Chase (JPM 311.12, -2.56, -0.82%) also beat expectations but issued a modest downward revision to its FY2026 net interest income.

Meanwhile, Wells Fargo (WFC 81.73, -4.91, -5.67%) was one of the worst-performing S&P 500 components after narrowly topping EPS estimates but missing on revenues.

Airlines also had an eventful session after Bloomberg reported that United Airlines (UAL 97.17, +1.97, +2.07%) floated the possibility of a merger with American Airlines (AAL 12.13, +0.90, +8.01%).

Outside of the S&P 500, the Russell 2000 (+1.4%) captured another solid gain as the market leans into a risk-on tone, while the S&P Mid Cap 400 (+0.5%) finished with a more modest gain.

After two solid days of broad strength, the major averages are back into positive territory for the year as the market shakes off losses tied to the war in Iran. This morning's release of the March PPI report added further support to the rebound narrative, with both the headline (0.5%; Briefing.com consensus 1.2%) and core (0.1%; Briefing.com consensus 0.4%) readings coming in cooler-than-expected.

While there has yet to be a conclusive end to the conflict, the market remains confident that disruptions across global oil markets will pressure Iran into a more durable ceasefire agreement sooner rather than later.

Overall, the tone remains constructive as falling oil prices, easing inflation pressures, and renewed mega-cap leadership continue to support the market's advance. With Q1 earnings season beginning to ramp up, strength in mega-cap names is once again playing an outsized role in driving index performance, leaving the S&P 500 just 0.5% below its all-time high.

U.S. Treasuries had a solid outing on Tuesday, making for a continuation of an upbeat start to the week amid a growing sense that the Iran conflict will conclude soon. The 2-year note yield settled down three basis points to 3.75%, and the 10-year note yield settled down four basis points to 4.26%. 

Reviewing today's data:

• March NFIB Small Business Optimism 95.8 (Briefing.com consensus 98.0 mln); Prior 98.8
• March PPI 0.5% (Briefing.com consensus 1.2%); Prior was revised to 0.5% from 0.7%, March Core PPI 0.1% (Briefing.com consensus 0.4%); Prior was revised to 0.3% from 0.5%
  • The key takeaway from the report is that the inflation seen at the wholesale level in March was driven largely by energy prices and gasoline prices (+15.7%) in particular. The index for final demand services was unchanged, so the market is giving itself some latitude to look through the energy price shock as something that is temporary.

Wednesday: 

The stock market saw another day of strong gains in mega-cap and tech stocks, pushing the S&P 500 (+0.8%) to new intraday (7,026.24) and closing (7,022.95) highs. The tech-heavy Nasdaq Composite (+1.6%) notched an even wider gain, and captured a record closing high of its own.

Meanwhile, weakness in the broader market saw the DJIA (-0.2%) face a modest retreat as gains were largely confined to growth-oriented pockets of the market.

Equities remain supported by an improving geopolitical backdrop, as reports circulated that the U.S. and Iran may soon meet for another round of negotiations aimed at extending the current ceasefire. Importantly, oil prices remain stable, with crude oil futures settling today's session $0.01 lower (-0.01%) at $91.30 per barrel.

Gains were led by the top-weighted information technology sector (+2.1%), which extended its week-to-date gain to 5.6%. Software names led the advance, with Microsoft (MSFT 411.22, +18.11, +4.61%) a notable "magnificent seven" standout and packaged software names such as Datadog (DDOG 121.06, +10.49, +9.49%) and ServiceNow (NOW 94.19, +6.40, +7.29%) posting even wider gains. The iShares GS Software ETF finished 4.4% higher.

Semiconductor names were relative underperformers, though the PHLX Semiconductor Index (+0.2%) eked out a slight gain. Sandisk (SNDK 891.72, -52.74, -5.58%) deepened yesterday's reversal from a record high, while AI-infrastructure stocks such as KLA Corporation (KLAC 1748.11, -47.80, -2.66%) lagged after ASML (ASML 1481.77, -36.53, -2.41%) topped earnings estimates but lowered its Q2 guidance. Broadcom (AVGO 396.72, +15.94, +4.19%) still captured a nice gain after announcing an expanded partnership with Meta Platforms (META 673.10, +10.60, +1.60%) to support the company's rapidly scaling artificial intelligence compute infrastructure.

Meta's gain contributed to strength in the communication services sector (+1.1%), while the consumer discretionary sector (+1.4%) captured a similar gain as Tesla (TSLA 391.95, +27.75, +7.62%) moved sharply higher.

All told, the Vanguard Mega Cap Growth ETF advanced 1.9%, which contributed to the outperformance of the market-weighted S&P 500 (+0.8%) relative to the S&P 500 Equal Weighted Index (flat).

The financials sector (+0.8%) was the only other S&P 500 sector to notch a gain today, supported by a solid gain from Morgan Stanley (MS 191.60, +8.26, +4.51%) after topping earnings estimates and Robinhood Markets (HOOD 87.32, +8.23, +10.41%) finishing as one of the top-performing S&P 500 components after the SEC approved a proposal from FINRA to eliminate the current day trading margin requirements.

As for the broader market, losses were relatively modest in nature, though there were some notable underperformers.

The industrials sector (-1.2%) underperformed, with names such as Caterpillar (CAT 770.17, -24.08, -3.03%) and Carrier Global (CARR 58.55, -6.11, -9.45%) lagging. Recent Fed commentary suggests rates will remain unchanged for some time in response to oil-driven inflation, and the sector is particularly sensitive to higher rates given its capital-intensive nature and the reliance of its customers on financing for large equipment and infrastructure projects.

Elsewhere, the materials (-1.3%) sector saw a continuation of recent weakness, while the defensive utilities (-0.9%), health care (-0.7%), and consumer staples (-0.4%) underperformed amid the strength in growth stocks.

Outside of the S&P 500, the Russell 2000 (+0.3%) managed to capture a modest gain, while the S&P Mid Cap 400 (-0.3%) lagged.

Today's session marked an important milestone for the market as it looks to leave the Iran war in the rearview, with the S&P 500 eclipsing its previous record high from late January. Mega-cap and tech stocks are back in the driver's seat, which is important for index-level growth, especially since the group was off to a relatively subdued start to the year before the conflict in Iran prompted sharp losses. While the full impact of the surge in oil prices on inflation (and, in turn, rate cut expectations) remains to be seen, the market is back on firmer ground as Q1 earnings begin to ramp up.

U.S. Treasuries dipped on Wednesday, giving back the bulk of their Tuesday gains in an otherwise quiet midweek session. The 2-year note yield settled up two basis points to 3.77%, and the 10-year note yield settled up three basis points to 4.28%. 

Reviewing today's data:

• Weekly MBA Mortgage Applications Index 1.8%; Prior -0.8%
• April Empire State Manufacturing 11.0 (Briefing.com consensus 0.0); Prior -0.2 March Import Prices 0.8%; Prior was revised to 0.9% from 1.3%
• March Import Prices ex-oil 0.6%; Prior was revised to 0.8% from 1.1%
• March Export Prices 1.6%; Prior was revised to 1.9% from 1.5% March Export Prices ex-ag. 1.7%; Prior was revised to 2.1% from 1.7%
• April NAHB Housing Market Index 34 (Briefing.com consensus 38); Prior 38

Thursday:

• Russell 2000: +9.6% YTD
• S&P Mid Cap 400: +8.2% YTD
• Nasdaq Composite: +3.7%
• S&P 500: +2.9%
• DJIA: +1.1%

Reviewing today's data:

• April Philadelphia Fed Index 26.7 (Briefing.com consensus 12.7); Prior 18.1
• Weekly Initial Claims 207K (Briefing.com consensus 215K); Prior was revised to 218K from 219K, Weekly Continuing Claims 1.818 mln; Prior was revised to 1.787 mln from 1.794 mln
  • The key takeaway from the report is that it refutes any notion that the labor market is cracking in a way that will lock up discretionary spending. Initial jobless claims—a leading indicator—continue to run at historically low levels.
• March Industrial Production -0.5% (Briefing.com consensus 0.1%); Prior was revised to 0.7% from 0.2%, March Capacity Utilization 75.7% (Briefing.com consensus 76.4%); Prior was revised to 76.1% from 76.3%
  • The key takeaway from the report is that the headline decline is not as bad as it looks when taking into account the large upward revision to industrial production in February, which effectively offsets the decline in March.

Friday:

The stock market capped an impressive week with a strong rally as retreating oil prices, improved rate-cut odds, and broadening participation pushed stocks further into record territory. The S&P 500 (+1.2%) and Nasdaq Composite (+1.5%) notched record intraday and closing highs for the third consecutive session, with the Nasdaq Composite locking in a 13th consecutive higher finish, a feat not accomplished since 1992.

Solid participation across the broader market helped the DJIA (+1.8%) slightly outperform, while expectations for a potentially more favorable interest rate environment saw the Russell 2000 (+2.1%) and S&P Mid Cap 400 (+2.0%) capture even wider gains.

Stocks soared higher at the open following an announcement from Iran's foreign minister that the Strait of Hormuz will reopen to commercial traffic for the remainder of the U.S.-Iran ceasefire, which is set to expire on Tuesday. Additionally, The Wall Street Journal reported that the next round of talks between the two nations is likely to take place on Monday in Pakistan, and President Trump announced that Iran has indefinitely suspended its nuclear program.

Crude oil futures settled today's session $10.49 lower (-11.1%) at $84.22 per barrel, paving the way for broad participation and some impressive gains.

Airlines and cruise lines such as United Airlines (UAL 101.78, +6.75, +7.10%) and Royal Caribbean (RCL 285.48, +19.53, +7.34%) outperformed as oil retreated, contributing to strength in the consumer discretionary (+2.0%) and industrials (+1.8%) sectors.

Both sectors were also supported by solid gains across rate-sensitive stocks such as homebuilders and building supply names. The iShares U.S. Home Construction ETF finished 4.6% higher.

The pullback in oil prices has tempered the market's inflation expectations, and the CME FedWatch tool is now assigning a 50% probability to a rate cut of at least 25 basis points at the December FOMC meeting, up from around 30% yesterday.

Elsewhere, the top weighted information technology sector (+1.6%) also kept pace with the gains with semiconductor stocks leading the sector's advance, pushing the PHLX Semiconductor Index 2.4% higher.

Apple (AAPL 270.23, +6.83, +2.59%) was one of the best-performing "magnificent seven" stocks after Reuters reported China iPhone shipments increased 20% in the first quarter.

The communication services sector (+0.8%) logged one of the narrower gains today as Netflix (NFLX 97.31, -10.48, -9.72%) moved sharply lower after issuing disappointing Q2 guidance in its earnings release yesterday. Still, the sector finished well off its session lows due to strong leadership from its mega-cap components Alphabet (GOOG 339.40, +6.63, +1.99%) and Meta Platforms (META 688.55, +11.68, +1.73%). The Vanguard Mega Cap Growth ETF finished 1.4% higher.

Only the energy (-2.9%) and utilities (-0.4%) sectors finished lower.

Momentum remains firmly to the upside, with buyers continuing to push stocks into record territory with relative ease. The major averages have now notched week-to-date gains of at least 3% for three consecutive weeks, underscoring the strength of the rally as easing geopolitical tensions and improving rate-cut expectations continue to reinforce the market's bullish backdrop.

U.S. Treasuries had a strong finish to the week, pressuring yields on most tenors to their lowest closing levels in a month. The 2-year note yield settled down eight basis points to 3.70% (-10 basis points this week), and the 10-year note yield settled down six basis points to 4.25% (-7 basis points this week).

There was no economic data of note today.

• Russell 2000: +11.9% YTD
• S&P Mid Cap 400: +10.3% YTD
• Nasdaq Composite: +5.3% YTD
• S&P 500: +4.1% YTD
• DJIA: +2.9% YTD