Sunday, April 26

U.S. equity indexes advanced sharply amid signs of de-escalation in the Middle East conflict, with the S&P 500 and Nasdaq Composite notching fresh record highs. The Nasdaq led gains, rising 6.84% for the week, followed by the S&P 500 and Russell 2000, while the Dow Jones Industrial Average declined slightly. Technology and communications sectors outperformed, driven by AI enthusiasm and resilient corporate earnings, as investors repriced away worst-case geopolitical scenarios following the U.S.-Iran ceasefire extension and Iran's declaration that the Strait of Hormuz remains open for commercial vessels.

Treasury yields edged lower to 4.24%-4.31% on the 10-year note, reflecting improved risk sentiment, with high-yield bonds outperforming amid strong demand. The U.S. dollar strengthened against major currencies earlier in the period but softened as safe-haven flows eased. Oil prices pulled back from peaks, with WTI crude settling around $92 per barrel, supporting rebounds in energy, materials, and industrials sectors, all up over 10% year-to-date. Internationally, Japan's Nikkei hit a record near 60,000, Europe traded higher, and Asian markets showed mixed results, while U.S. March retail sales confirmed consumer resilience despite elevated energy costs.

Positive economic data bolstered sentiment, including the Philadelphia Fed index climbing to 26.7 on stronger shipments and orders, though employment softened and prices rose. Equity recoveries have returned U.S. and Japanese indexes to pre-conflict levels, with Europe's rebound ongoing but incomplete. The Monetary Authority of Singapore tightened policy, citing persistent global energy price pressures.

Watch upcoming U.S. economic prints, including inflation metrics and ISM data, alongside any updates on U.S.-Iran diplomacy and Strait of Hormuz shipping flows for signals on sustained de-escalation.