Looking Ahead: April 20, 2026

Hopes of a peace deal propelled stocks to record highs last week, with the three major averages all posting solid gains. The blue-chip Dow added 3.2%, while the S&P 500 rose 4.5% and the Nasdaq advanced 6.8%.

The S&P 500 notched its first close above 7,100, as the Nasdaq posted 13 consecutive days of gains, the longest winning streak since 1992.

The small-cap index, Russell 2000, hit a new all-time high, bouncing back about 14% since its lows on March 30, outperforming the S&P 500′s rebound over that time.

36 stocks in the S&P 500 trade at new 52-week highs.

Tesla was higher last week with a 15% rally. Microsoft soared almost 14%, its largest weekly increase since 2007.

U.S. Treasury yields moved lower generally.

Western Texas Intermediate crude futures fell by more than 14% last Friday, and 16% on the week, after Iran said it will open the Strait of Hormuz for the duration of the ceasefire between Lebanon and Israel. That was the worst week for oil since April 2020, when it fell more than 19%. The fragile 15-day ceasefire that is currently in place, is set to expire this Wednesday.

In economic news, existing home sales remained sluggish with activity falling to a nine-month low. The National Federation of Independent Business (NFIB) small business index optimism dipped below its 52-year average with a decline in March.

Despite a surge in energy costs, the Producer Price Index (PPI) rose less than consensus expectations month-over-month (M/M).

The Empire State Manufacturing Survey saw a notable rebound in April, but U.S. industrial production and capacity utilization edged lower in March despite a rise in non-auto factory output.

Looking ahead to this week, equity futures are lower this morning after the events over the weekend in the Strait of Hormuz, and the subsequent spike in crude oil futures. After a brief reopening on Friday, Iran’s Revolutionary Guard (IRGC) fully closed the Strait of Hormuz again on Saturday. IRGC gunboats reportedly opened fire on merchant vessels attempting to transit. Specifically, two Indian-flagged tankers and a U.K.-managed vessel were targeted.

Investors can expect earnings season to continue with Steel Dynamics reporting today. GE and RTX Corp. will post numbers Tuesday. On Wednesday, Boeing, Teledyne Technologies, Vertiv, Lam Research Corp., Tesla, and GE Vernova release quarterlies. On Thursday we hear from Intel, Dow, Inc., American Express, Comcast, Lockheed Martin, and Dover Corp. Friday’s corporate confessions will be from SLB Limited and Procter & Gamble.

S&P Global’s U.S. manufacturing and service Purchasing Managers’ Index (PMI) data is expected. Additional economic indicators will include retail sales and March pending home sales.

If you click the Looking Ahead button below, you will find a report written by Wells Fargo Investment Institute. Below are excerpts from that research.

Week in review: April 13-17

Economic news

• NFIB small business optimism fell to 95.8 in March, echoing the effects of increased economic uncertainty.
  • The decline was driven by a sharp spike in energy prices. While owners absorbed higher input costs and energy prices pressured expectations for improved business conditions. As a result, the uncertainty index rose to 92, well above its historical average of 68.
• PPI inflation for March showed wholesale prices increased by 0.5% M/M and 4.0% year-over-year (Y/Y), continuing the pattern of rising inflation measures that began prior to the Iran war.
  • A 15.7% jump in gasoline and broader fuel cost pressures contributed to the headline increase.
  • Core PPI (ex-food and energy) increased 0.1% M/M and 3.8% Y/Y, below survey expectations.
• Existing home sales for March declined by 3.6% to an annual rate of 3.98 million, reflecting rising mortgage rates.
  • The median selling price rose 1.4%, and inventory of previously owned homes increased to a four-month high.
• The National Association of Home Builders’ House Market Index fell from 38 in March to 34 in April.
  • The decline was primarily driven by weaker builder confidence, amid rising interest rates and higher material costs, which were directly affected by increased fuel prices.
• The Empire State Manufacturing Survey’s general business conditions index rose to 11.0 in April, an 11.2 point increase M/M, which was supported by new orders and employee growth.
• Industrial production for March declined slightly by 0.5% M/M, bringing the Y/Y increase to 0.7%.
  • Production was weighed down by a decline in the utilities index of 2.3%. Meanwhile, capacity utilization also experienced a downtick to 75.7%, a rate that is 3.7 percentage points below its 1972 to 2025 average.

Looking Ahead to this week: April 20 – April 24

U.S.

• The highlight early in the coming week will be March retail sales data on Tuesday, before attention shifts to a first look at S&P Global’s April PMIs for both the manufacturing and service sectors.
• Other potential market movers include March’s pending home sales and the Federal Reserve (Fed) of Chicago’s National Activity Index, along with April‘s finalized University of Michigan consumer sentiment.
• Also on tap: February‘s business inventories and measures of April economic activity from the Philadelphia and Kansas City regional Fed banks. Investors will also be watching for developments in the war with Iran.

Asia

• In China, the highlight of an otherwise data-light week will be April‘s one-and five-year loan prime rates.
• From Japan, look for preliminary April PMIs; March’s National Consumer Price Index (CPI), services PPI, department store sales, and trade balance; and February’s Tertiary (services) Industry Index and leading index.
• South Korea’s April consumer confidence, March PPI, advance reading of first-quarter gross domestic product hit the tape, along with Australia’s March leading index and preliminary April PMIs.

Europe

• In Europe, the focus will be on regional preliminary April PMIs and consumer confidence readings, along with the eurozone’s April ZEW expectations for economic growth.
• From France, also watch for April manufacturing confidence, while additional German releases include March’s PPI and April’s IFO business climate survey and ZEW indicator of economic sentiment.
• Also be on the lookout for the U.K.’s February unemployment rate, weekly earnings, and employment change; March CPI, a companion Retail Price Index (PPI) retail sales, jobless claims and April’s house prices.