What we learned last week:
“The balance of power is the scale of peace.” – Thomas Paine
A second consecutive week of record highs for the benchmark S&P 500 and tech-heavy Nasdaq. Corporate earnings and events in the Middle East were key drivers, pushing both energy and tech sectors to gain more than 3% last week.
A review of the ‘Weekly Market Recap’ from J.P.Morgan Asset Management shows gains in three of eleven sectors – demonstrating risk from the war in Iran and energy price shock still exists.
Leading with results from corporate earnings, two notable reports drove equity market returns.
GE Vernova (GEV) reported 50% plus growth in their power and electrification segments. These divisions of the company are core contributors to the AI data center build-out and signal demand is still strong.
The other notable report came after market hours on Thursday from a first-generation tech company, Intel (INTC). The computer chip producer is responsible for several innovative technologies that brought computer power and speed into the modern age, dominating the personal computer space with their core processing power.
Most recently, with the intent of creating more computer chips in the United States, the U.S. Government in August of 2025 invested $8.9 billion in Intel common stock.
The investment has seemingly paid off as Intel surged more than 23% Friday after reporting higher sales and improved outlook, leading Nasdaq to close the week at record highs.
Supporting optimism on Wall Street was March’s retail sales report, which saw the biggest monthly increase in data going back to at least 1992. Growth was led by a month-over-month gain of 15.5% at gas stations, removing this outlier, sales rose in all categories except two.
The market is balancing earnings against concerns that energy prices will stay higher for longer due to events in Iran.
With another full week of the Strait of Hormuz remaining closed, peace talks over the weekend were scrapped in Pakistan; fortunately, the U.S. extended the ceasefire. President Trump said the extension was warranted due to Tehran’s government being “seriously fractured” and the ceasefire would continue “until such time as Iran’s leaders and representatives submit a unified proposal.”
The week ahead will likely continue to be a balancing act with any positive or negative news out of Iran and the earnings reports and outlook from five of the ‘Mag 7’ companies reporting.
What’s ahead this week:
Economic Events
- Wednesday the Federal Reserve meets to review their policy interest rate. Expectations are for the rate to stay the same. The press conference with Fed Chair Powell will have the attention of investors as he fields questions about energy prices and inflation.
- Personal Consumption Expenditures (PCE) will be released Thursday. PCE measures the changes in prices for goods and services purchased by consumers and is the Federal Reserves preferred gauge for measuring inflation.
- Durable-goods orders is also released Wednesday and will be a key economic indicator as the measure has dropped four out of the last five months – mostly due to a drop in transportation equipment.
Earnings
- Mag 7 companies take center stage in a busy week of corporate quarterly earnings reports
- Google, Microsoft, Amazon, and Meta each report after-market hours on Wednesday
- Apple reports Thursday after-hours
- Blue-chip companies reporting; Verizon, Visa, Coco-Cola, Caterpillar, Exon Mobile, and Colgate-Palmolive
- In the Healthcare sector GLP-1 leaders Lilly and Novo Nordisk both report as an oral based GLP-1 race heats up
- Amgen a world leader in biotech and AbbVie and Merk, both leaders in pharmaceuticals will also report earnings
My goal is for you to feel educated and informed about variables we do and don’t have control over and find ourselves working within. I hope to do it in an informative and relatable way. As always, I value your relationship and planning objectives – my door is always open for conversation.
