• Markets close modestly lower, Nasdaq lags – Equity markets were lower on Tuesday, with the technology-heavy Nasdaq lagging the broader S&P 500. The weakness in the tech sector was in part driven by news that the tech giant OpenAI fell short of sales targets and new users for the quarter. This weighed especially on AI and data-center-focused stocks. In addition, oil resumed its upward climb as uncertainty around the blockades of the Strait of Hormuz lingers. WTI oil was up over 3.5% toward $100. From a sector perspective, energy and defensive sectors like consumer staples led the way higher, while technology lagged. Bond yields were also modestly higher, with the 10-year yield up about 0.01% to 4.35%. More broadly, the S&P 500 is now up about 13% since its recent March 30 lows and is hovering around all-time highs. In our view, while uncertainty around geopolitics remains in place, markets seem focused on the solid fundamentals, including positive economic growth and corporate earnings forecasts which continue to be revised higher.
   
• Earnings season set to hit its stride with Magnificent 7 – Five of the Magnificent 7 companies are on the earnings calendar this week, starting with Alphabet (Google), Amazon, Meta (Facebook) and Microsoft on Wednesday, followed by Apple on Thursday. More broadly, the early read on first-quarter earnings has been encouraging: With about 28% of S&P 500 companies reporting, 82% have beaten EPS estimates by an average upside surprise of 12%. EPS growth estimates have been revised up to 13.7%, from 12.1% at the end of the quarter. If achieved, this would mark the sixth straight quarter of double-digit earnings growth. Technology is again expected to lead by a wide margin, with earnings gains of more than 40% year-over-year, followed by materials and financials. Importantly, the breadth of growth is expected to be strong, as eight of the 11 sectors are projected to post year-over-year EPS gains. We believe wide earnings growth should help support more balanced market performance across sectors and help strengthen the case for portfolio diversification.
   
• Fed likely to remain on hold this week – The Federal Open Market Committee (FOMC) begins its April meeting on Tuesday, with expectations pointing to policymakers leaving the target range for the federal funds rate unchanged at 3.50%-3.75% for the third straight meeting. The larger focus is likely to be on the statement and commentary, specifically the extent to which the Fed is willing to look through the near-term impact of higher oil prices on inflation. The Fed's preferred Personal Consumption Expenditure (PCE) inflation gauge for March will be released on Thursday, with forecasts calling for a rise to 3.6%, from 2.8% the prior month. With inflation well above the 2% target, the Fed will likely be on the sidelines in the near term. We believe the stabilizing labor market, showing some signs of strengthening, should give policymakers time to look for signs that inflation is temporary.

Mona Mahajan;
Investment Strategy

^{Source for all data: FactSet} 

• Markets close higher with Fed, Magnificent 7 on deck – Equity markets advanced on Monday as investors look ahead to the Fed's April meeting and earnings results of five of the Magnificent 7 companies this week. Sector performance was mixed, with communication and financials leading gains, while consumer staples and real estate lagged. Bond yields rose, with the 10-year Treasury yield at 4.33%. Internationally, Asian markets were mostly stronger overnight with both Japan's Nikkei and South Korea's KOSPI indexes reaching record highs. In energy markets, WTI oil prices traded higher amid uncertainty around U.S.-Iran diplomacy and continued disruptions in the Strait of Hormuz. Meanwhile, the U.S. dollar softened against major currencies.
   
• Fed likely to remain on hold this week – The Federal Open Market Committee (FOMC) begins its April meeting on Tuesday, with expectations pointing to policymakers leaving the target range for the federal funds rate unchanged at 3.50%-3.75% for the third straight meeting. The larger focus is likely to be on the statement and commentary, specifically the extent to which the Fed is willing to look through the near-term impact of higher oil prices on inflation. The Fed's preferred Personal Consumption Expenditure (PCE) inflation gauge for March will be released on Thursday, with forecasts calling for a rise to 3.6%, from 2.8% the prior month. With inflation well above the 2% target, the Fed will likely be on the sidelines in the near term. We believe the stabilizing labor market, showing some signs of strengthening, should give policymakers time to look for signs that inflation is temporary.
   
• Earnings season set to hit its stride with Magnificent 7 – Five of the Magnificent 7 companies are on the earnings calendar this week, starting with Alphabet (Google), Amazon, Meta (Facebook) and Microsoft on Wednesday, followed by Apple on Thursday. More broadly, the early read on first-quarter earnings has been encouraging: With about 28% of S&P 500 companies reporting, 82% have beaten EPS estimates by an average upside surprise of 12%. EPS growth estimates have been revised up to 13.7%, from 12.1% at the end of the quarter. If achieved, this would mark the sixth straight quarter of double-digit earnings growth. Technology is again expected to lead by a wide margin, with earnings gains of more than 40% year-over-year, followed by materials and financials. Importantly, the breadth of growth is expected to be strong, as eight of the 11 sectors are projected to post year-over-year EPS gains. We believe wide earnings growth should help support more balanced market performance across sectors and help strengthen the case for portfolio diversification.

Brian Therien, CFA ;
Investment Strategy

^{Source for all data: FactSet} 

• Stocks mostly rise on peace hopes and tech outperformance – The S&P 500 and Nasdaq hit fresh record highs today after encouraging signs that the U.S. and Iran may return to the negotiating table for peace talks. The recent rally in oil prices, with WTI up 13% this week, paused following news that the Israel‑Lebanon ceasefire has been extended for three weeks, and that Iran’s foreign minister is expected to travel to Pakistan for a second round of negotiations. Elsewhere, technology stocks led the gains, with semiconductors outperforming after Intel issued an upbeat outlook. Intel shares surged 22% to a new record high after the company delivered a sales forecast that significantly exceeded expectations. In Asia, Taiwan Semiconductor Manufacturing jumped 5% after regulators eased limits on single‑stock fund holdings. Meanwhile, bond and currency markets remained relatively quiet as investors look ahead to central-bank meetings next week.
   
• Depressed sentiment vs. still-solid fundamentals - Sentiment surveys, such as the University of Michigan consumer sentiment index, have fallen to their lowest levels on record, below those seen during both the 2008 financial crisis and the 2020 pandemic. Yet the hard economic data do not appear to reflect this degree of pessimism. Retail sales have remained resilient, highlighting a significant divergence between how consumers feel and how they behave. While technology-sector layoffs have attracted attention, labor-market indicators remain encouraging. Weekly initial jobless claims continue to run near historical lows, unemployment is steady, and private‑sector hiring appears to be regaining momentum. Higher energy prices remain a headwind for households, but increased tax refunds stemming from the new tax bill are providing a meaningful offset. According to the latest IRS data, the average refund this year is approximately $3,400—an 11% increase from last year. Overall, we expect household stimulus to reach roughly $200 billion in 2026, more than offsetting an estimated $80–$100 billion increase in gasoline and other fuel spending driven by higher oil prices.
   
• Earnings strength is key behind market's resilience - While investor sentiment can change on a whim, trends in corporate profits are among the most durable drivers of market performance. We believe strong earnings growth is a key reason markets have become less sensitive to geopolitical headlines and swings in oil prices. S&P 500 earnings are expected to grow nearly 14% year-over-year in the first quarter. If realized, this would mark the sixth consecutive quarter of double‑digit earnings growth. The technology sector is leading the charge, with earnings projected to rise roughly 46%, driven by robust demand for artificial intelligence and the related infrastructure buildout. Other sectors are also expected to deliver solid growth, but markets will remain focused on mega‑cap technology next week. Microsoft, Amazon, Alphabet, and Meta are all set to report after the close on April 29, followed by Apple on April 30.

Angelo Kourkafas, CFA ;
Investment Strategy

^{Source for all data: Bloomberg.} 

• Markets take a breather after reaching all-time highs – Equity markets were modestly lower on Thursday after the S&P 500 and Nasdaq notched new closing highs on Wednesday. The technology-heavy Nasdaq lagged the broader S&P 500. Nonetheless, for the full year, all major U.S. indexes are higher, with the S&P up about 4% and the Nasdaq up about 5% this year so far. On a sector basis, energy, materials, and industrials have led the way higher in 2026, all up over 10%, while financials and health care have lagged, both down about 5% year-to-date. More broadly, recent market action suggests investors have been rapidly repricing away worst-case outcomes as oil prices remain below recent peaks, rates stabilize, and corporate earnings remain resilient—key supports behind the swift rebound to new highs.
   
• U.S.-Iran ceasefire extended - President Trump extended the ceasefire with Iran this week, reducing near-term geopolitical risk and allowing more time for diplomacy. Despite this development, energy markets reflect continued stress. WTI oil prices moved higher as the Strait of Hormuz remains disrupted and the U.S. blockade on ships from Iranian ports continues. Brent crude oil is back above $105, while WTI crude hovers around $96, both up over 65% this year alone. Importantly, however, energy futures markets are reflecting expectations for the disruptions to be short-lived, pointing to crude prices moving back toward the mid-$70s by year-end. If realized, falling oil prices should help ease headline inflation and help reduce pressure on energy-intensive sectors, in our view.
   
• Broadening of market leadership theme may re-emerge – Looking ahead, we do not think investors should assume the market is completely out of the woods. The narrative around the conflict remains fluid, and while the probability of the most adverse outcomes appears to have diminished, considerable uncertainty remains around the duration and resolution of energy supply disruptions. Historically, V‑shaped rebounds have shown a mixed record in sustaining momentum. There have been periods such as the tariff‑induced correction in April 2025 when markets not only recovered quickly but were followed by strong performance. In other instances, equities moved sideways as gains were digested. And in episodes like early 2000 and late 2007, sharp rebounds ultimately marked major market peaks. In the current environment, a pause and sideways phase appear likely, in our view, particularly until oil supplies normalize and physical shortages ease more decisively. If the path toward de‑escalation remains intact, we would expect markets to gravitate back toward the themes that defined performance earlier in the year, with prior leaders reasserting themselves. This would likely entail cyclical sectors regaining leadership over defensives, U.S. small‑ and mid‑caps sustaining relative momentum versus large-caps, and emerging‑market equities continuing to outperform domestic stocks.

Mona Mahajan ;
Investment Strategy

^{Source for all data: Bloomberg.} 

• Markets close higher as U.S.-Iran ceasefire extended – Equity markets advanced on Wednesday, with the S&P 500 and Nasdaq notching new closing highs, as investors appear increasingly willing to look through geopolitical uncertainty and refocus on growth and earnings. Technology and communications led gains, reinforcing the market's risk-on tone. Bond yields edged lower, with the 10-year Treasury yield at 4.30%. Internationally, Asian markets finished mixed overnight as Japan's Nikkei index reached a record high, closing in on 60,000. The U.S. dollar strengthened against major international currencies.
   
• U.S.-Iran ceasefire extended - President Trump extended the ceasefire with Iran, reducing near-term geopolitical risk and allowing more time for diplomacy. Despite this development, energy markets reflect continued stress. WTI oil prices moved higher as the Strait of Hormuz remains disrupted and the U.S. blockade on ships from Iranian ports continues. Importantly, energy futures markets are reflecting expectations for the disruptions to be short-lived, pointing to crude prices moving back toward the mid-$70s by year-end. If realized, falling oil prices should help ease headline inflation and help reduce pressure on energy-intensive sectors, in our view.
   
• Earnings season check-in – Tesla, the first of the "Magnificent 7" to report this cycle, is set to release results after the closing bell today. Consensus estimates point to earnings per share (EPS) of $0.36 — a 30% year-over-year increase — on about $22 billion of revenue. More broadly, the early read on first-quarter earnings is encouraging: With 17% of S&P 500 companies reporting, 84% have beaten EPS estimates by an average upside surprise of 13%. Forecasted EPS growth for the quarter has been revised up to over 12%, which, if achieved, would mark the sixth straight quarter of double-digit earnings growth. Technology is expected to lead by a wide margin, with earnings gains of more than 40% year-over-year, followed by materials and financials. Importantly, the breadth of growth is expected to be strong, as eight of the 11 sectors are projected to post year-over-year EPS gains. We believe wide earnings growth should help support more balanced market performance across sectors and help strengthen the case for portfolio diversification.

Brian Therien, CFA ;
Investment Strategy

^{Source for all data: FactSet.}