Most major U.S. stock indexes finished the week higher, with several hitting record highs. Positive economic data, ongoing strength in AI-linked stocks, and upbeat earnings results helped offset continued uncertainty surrounding the U.S.-Iran conflict. The technology-heavy Nasdaq Composite led gains, followed by the S&P 500 and Russell 2000 Indexes. The Dow Jones Industrial Average declined. With nearly 20% of the S&P 500 companies reporting during the week, 84% of S&P 500 companies that had reported through Friday beat estimates, with a blended yoy earnings growth rate of 15.1%—on pace for a sixth consecutive quarter of double-digit growth (source: Factset). On the macro data side, U.S. retail sales jumped 1.7% in March, the strongest monthly increase since early 2023, driven by a 15.5% surge in sales at gas stations. Excluding gas stations, sales rose by a still healthy 0.6%. University of Michigan Consumer Sentiment dips as expectations for inflation in the year ahead surged to 4.7%, up from 3.8% in March. Outside the US, the pan-European STOXX Europe 600 Index ended the week down 2.54% in local currency terms. Japan’s stock markets generated mixed returns over the week while the Nikkei 225 Index gained 2.12%, extending its record highs. U.S. Treasuries yields increased across most maturities throughout the week. Oil is significantly higher on the week (+13%). Gold was down while Bitcoin gained 6%. The dollar was slightly up.
Have a great weekend
Charles & Syz Research Lab