Equities posted a fourth consecutive weekly gain as the S&P 500 and Nasdaq touched fresh record territory mid-week, buoyed by an extension of the Israel–Lebanon ceasefire, the prospect of renewed US–Iran talks in Pakistan, and an early tilt toward beats in mega-cap earnings. Semiconductors led the tape, defense contractors diverged on execution, and biotech continued its multi-month recovery on policy clarity and M&A flow.
| Session | S&P 500 | Nasdaq Composite | Dow Jones | Narrative |
|---|---|---|---|---|
| Mon Apr 20 | 7,109.14 (–0.24%) | 24,404.39 (–0.26%) | 49,442.56 (–0.01%) | Consolidation ahead of mega-cap earnings |
| Tue Apr 21 | 7,137.90 (+1.05%) | 24,657.57 (+1.64%) | 49,490.03 (+0.69%) | Records on Iran ceasefire extension |
| Wed Apr 22 | Mixed / higher | Chips rally continues | Flat | Intel beat lifts semis; broad AI bid |
| Thu Apr 23 | 7,108.40 (–0.41%) | 24,438.50 (–0.89%) | 49,310.32 (–0.36%) | Profit-taking; Lockheed drops ~6% |
| Fri Apr 24 | +0.7% intraday | +1.5% intraday | –149 pts (–0.3%) | US–Iran talks in Pakistan lift risk appetite |
The macro picture remained constructive for risk assets this week. Core PCE is tracking near 2.9% on a 12-month basis — still above target but with underlying momentum decelerating as tariff pass-through fades and shelter inflation cools. The Federal Reserve continues to hold the policy rate at 3.50–3.75%, and the market-implied path of the federal funds rate shifted marginally higher over the last intermeeting period, reflecting later-in-year easing expectations rather than a hawkish re-pricing.
Fed funds target: 3.50 – 3.75% (held at March 19 FOMC).
10Y UST: Little changed on net; anchored by cooling core services inflation.
Market pricing: ~2 cuts priced by YE26, weighted toward Q4.
Real GDP: 4.4% in Q3'25, firm consumer + AI-led capex.
Core PCE: ~2.9% YoY; path toward ~2% into year-end.
Labor: Stable; claims contained, wage growth moderating.
Risk premia compressed after President Trump announced a three-week extension to the Israel–Lebanon ceasefire and confirmed the resumption of US–Iran talks in Pakistan. Crude held above $94 but off recent highs; the VIX retraced to 18.76, its lowest level since the Iran conflict. Gold softened marginally on reduced safe-haven demand, while Bitcoin slipped below $79k on profit-taking as equity correlations reasserted.
Hardware decisively outpaced software this week. Q1 reporting began with a bang: a strong Intel print catalyzed a sector-wide chip rally and lifted networking and AI infrastructure names across the board.
Hyperscaler capex remains the dominant narrative. Aggregate 2026 spend from Amazon, Microsoft, Alphabet and Meta is on track to approach ~$700B — up more than 60% vs 2025. Investors are watching for proof-of-payoff in next week's mega-cap prints.
Earnings quality — not the demand backdrop — drove dispersion this week. Backlogs remain near records across primes, but execution variance produced sharp single-name moves.
The sector's 2–3 month recovery extended as drug-pricing agreements between the administration and large drugmakers (Pfizer, AstraZeneca, Lilly, Novo) reduced regulatory overhang. M&A activity continues to firm sentiment.
| Ticker | Company | Result | Stock Reaction | Key Driver |
|---|---|---|---|---|
| INTC | Intel | Beat | Sharply higher | Foundry traction; sector halo on AMD/MU |
| RTX | RTX Corp. | Beat & Raise | +3%+ | Defense + commercial aero strength |
| NOC | Northrop Grumman | Beat | Positive | B-21 normalization; +82% NI YoY |
| LMT | Lockheed Martin | Miss | –6.3% | Aeronautics & RMS execution drag |
| TSLA | Tesla | Beat (Q1) | Constructive | Rev $22.4B (+16%), NI +17% |
| AMD | Advanced Micro Devices | Pre-earnings rally | +57% YTD | MI-series momentum; hyperscaler demand |
Mon/Tue: Industrial & consumer prints open the week.
Wed Apr 29: Alphabet (GOOGL) — Cloud growth >50% in focus.
Thu/Fri: Meta, Microsoft, Apple, Amazon staggered across week — capex guide critical.
Data: PCE deflator, employment cost index, prelim GDP.
Geopolitics: US–Iran talks in Pakistan; Ukraine/Russia headlines.
Rates: Fed speakers in pre-FOMC blackout; Treasury refunding watch.