The S&P 500 closed at a fresh all-time high on Friday, rising for a 5th consecutive week, its longest weekly winning streak since 2024. This brings the index up +15% since the March 30 low, also marking April as the best month for stocks since November 2022. Stocks largely shrugged off the stream of sometimes conflicting headlines about the war in the Middle East and a surprisingly hawkish Federal Reserve policy meeting to post solid gains in most major indexes. Large-cap stocks outpaced small-caps, and value outperformed growth. Five of the “Mag 7” companies reported earnings, with financial results generally meeting or exceeding expectations for these bellwether firms. Meanwhile, major central banks keep rates on hold amid war uncertainty. Despite S&P 500 closing at record highs, market breadth remains deeply negative, with 315 stocks declining versus just 186 advancing on Friday, marking the 4th record high in the last 5 sessions achieved on negative breadth. The SOX Semiconductor Index has soared +30% since the start of the Iran war, while the equal-weighted S&P 500 has declined -1% over the same period, highlighting how narrow this rally truly is. Oil prices were volatile, and WTI oil finished the week up more than 7% while US Treasury yields increased. Outside the US, the STOXX Europe 600 Index ended the week broadly flat, nudging up 0.1% in local currency terms. In Japan, the Topix index rose 0.3% while the Yen surged on Thursday. The abrupt currency move was indicative of official intervention.
Have a great weekend
Charles & Syz Research Lab