U.S. stock indexes recorded solid gains for the 2nd week in a row as signs of de-escalating conflict in the Middle East and a subsequent drop in oil prices boosted investor sentiment. Enthusiasm around artificial intelligence-linked stocks also served as a tailwind for parts of the market. Additional reports suggesting talks involving Israel and Lebanon also appeared to support equities late in the week, although overall uncertainty remained elevated heading into the weekend. The Nasdaq Composite outperformed (+4.68% over the week). Within the S&P 500 Index, energy was the only sector to post negative returns. On the macro side, US CPI growth (March) accelerated amid surging energy costs but came in below estimates. US Q4 2025 real GDP growth was revised down. ISM Services activity slumped amid sharp jump in prices; consumer sentiment (University of Michigan Survey) tumbled. U.S. Treasuries generated positive returns over the week while credit spreads tightened. On the international front, the STOXX Europe 600 Index ended the week up 3.05% in local currency terms while EU forewarned of cuts to growth forecasts. Japan’s stock markets rebounded strongly during the week, with the Nikkei 225 Index gaining 7.15%. The dollar fell every day this week (and 7 of the last 8 days), back near pre-war levels. Gold rallied for the 3rd straight week, up over 18% from the lows on 3/23. Bitcoin was up 6 of the last 7 days, back to its highest since 3/18, with its best week since early October 2025.
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Charles & Syz Research Lab