U.S. stocks posted strong gains for the third straight week, with several major indexes notching new all-time-highs amid signs of de-escalating conflict in the Middle East, upbeat earnings results, and a series of generally positive economic data releases. The Nasdaq Composite led indexes higher, gaining 6.84%, followed by the Russell 2000 and S&P 500 Indexes. Large-cap growth stocks outperformed their value counterparts for the third consecutive week, supported in part by ongoing enthusiasm around artificial intelligence-linked stocks. Positive sentiment was supported by the ongoing U.S.-Iran ceasefire as well as optimism around continuing negotiations between the two countries. Sentiment received additional support Friday after Iranian Foreign Minister Abbas Araghchi declared the Strait of Hormuz “completely open” for commercial vessels after an Israel-Lebanon ceasefire agreement, which also sent oil prices down 12% on the day, back down to its lowest since 11th of March. Meanwhile, the first wave of Q1 earnings reports from several major U.S. banks appeared to be well received as commentary around current economic conditions was generally upbeat, particularly around consumer spending. U.S. Treasuries generated positive returns, with yields fluctuating throughout the week before decreasing Friday. The STOXX Europe 600 Index ended the week up 1.91% while the Nikkei 2225 added 2.7%. Gold spiked up towards $4900 on Friday while bitcoin topped $78k. The dollar fell for the 3rd week in a row.
Have a great weekend.
Charles & Syz Research Lab