Market and Consumer Resilience
Market and Consumer Resilience
Major stock indices (S&P 500 & Nasdaq) closed at record highs as investors seemed encouraged by progress with resolving the war in Iran, and upbeat earnings results.
For the week, the S&P 500 gained 0.56%, the tech-heavy Nasdaq gained 1.51%, and the blue-chip Dow Jones Industrial Average dropped 0.41%. Foreign markets were mixed with developed (EAFE) falling 2.70% and emerging markets (EM) rising 0.86%.
Investors appear to be unfazed by the Middle East conflicts, and a recalibration of interest rate cut outlooks. First quarter earnings have been solid so far with revenues and earnings growth having exceeded estimates by 9.8% and 25.3%, respectively. Out of the 137 S&P 500 companies that reported, 68% beat the top-line and 78% beat the bottom-line analysts’ estimates.1 Gold fell 2.79% to $4,722.30 per troy oz. Oil prices are still showing the effects of the Strait of Hormuz being closed, pushing oil prices back up to $94.40 per barrel.
The consumer remains resilient as retail sales jumped 1.7% in March, mostly supported by higher gas prices and larger tax refunds from last year’s tax cuts. Retail sales grew 0.6% excluding gasoline in March from February. The University of Michigan’s Consumer Sentiment Index for April declined 3.5 points from March to 49.8 which was slightly ahead of preliminary estimates. The U.S. cease fire announcement with Iran helped lessen consumer worries.
Bond yields rose with 10-year Treasury closed the week at 4.3%, up slightly from 4.24% the previous week. The expectations are that the federal Reserve will pause again on cutting interest rates.
This week the attention will be on the Iran conflict, 1st Q earnings reports, the Federal Reserve’s meeting, and the reporting of the Personal Consumption Expenditures Price Index. There’s little doubt that the markets will be volatile until the war in Iran is, hopefully, resolved. We recommend continuing to pair back concentrated positions, and reassessing asset allocation targets.
“Our greatest weakness lies in giving up. The most certain way to succeed is always to try just one more time.” –Thomas Edison
Sources
Market data: J.P. Morgan Asset Management, Weekly Market Recap, April 27, 2026. Index returns, yields, key rates, and commodity prices as cited in the Weekly Data Center. All equity returns represent total return for stated period. Oil and Gold data as cited in the Wall Street Journal April 27, 2026
Economic Data: MarketWatch.com
Investors cannot invest directly in an index. Past performance does not guarantee future results. Diversification does not guarantee investment returns and does not eliminate the risk of loss. This material is for informational purposes only and should not be relied upon as investment advice or a recommendation of any particular security, strategy, or investment product. This material does not consider the investment objectives, financial situation, or unique needs of any individual investor. Consult your financial advisor before making any investment decisions.
1 Charles Schwab Weekly Trader's Stock Market Outlook