Thursday, April 23

U.S. equities surged with the Nasdaq Composite gaining 6.84% for the week, leading the S&P 500 and Russell 2000 to record highs, while the Dow Jones declined amid de-escalating Middle East tensions including a U.S.-Iran ceasefire extension and Iran's declaration of an open Strait of Hormuz. Technology and communications sectors outperformed, driven by AI enthusiasm and resilient corporate earnings, as investors repriced away worst-case geopolitical scenarios. Japan's Nikkei hit a record near 60,000, Europe's indices rebounded but trailed pre-conflict levels, and China's exports weakened.

Treasury yields fluctuated before easing to 4.24%-4.31% on the 10-year note, with the 2-year at 3.80%, reflecting improved risk sentiment that boosted high-yield bonds. The U.S. dollar strengthened against major currencies earlier in the week before softening on risk-on flows. Oil prices fell sharply from recent peaks, with WTI crude settling around $92 per barrel, easing stagflation pressures despite elevated energy costs offsetting wage gains and prompting Singapore's first policy tightening in four years. Gold and other commodities saw limited movement amid the rebound.

Philadelphia Fed's activity index rose to 26.7, the highest since January 2025, on stronger shipments and orders, though employment weakened and prices hit eight-month highs; March retail sales confirmed resilient consumer spending. Crypto markets remained subdued without major catalysts.

Traders will monitor upcoming U.S. economic data, Iran negotiation progress, and oil supply dynamics for signals on inflation and growth trajectories.