Quick Summary
- Major indexes extended gains for a second consecutive week: S&P 500 climbed 3.5%, Dow advanced 3%, Nasdaq surged 4.7%
- Earnings reports from major financial institutions including JPMorgan, Goldman Sachs, and Bank of America scheduled for this week
- March inflation data revealed the sharpest monthly gain since June 2022, primarily energy-driven
- Crude oil trades around $98 per barrel while July futures point toward $85, potentially boosting equities
- Technology sector shows dramatic split: software names plunge 30% while chip stocks rally over 20% in 2026
Equity markets concluded their second straight positive week as focus shifted toward the beginning of corporate reporting season. The S&P 500 advanced 3.5%, while the Dow Jones Industrial Average posted a 3% gain and the Nasdaq Composite surged 4.7% higher. Despite remaining in negative territory year-to-date, all three benchmarks now sit within 1% of reaching breakeven levels.
The coming week delivers a packed earnings calendar. Goldman Sachs kicks things off Monday. JPMorgan Chase, Citigroup, and Wells Fargo are scheduled for Tuesday. Bank of America and Morgan Stanley release results Wednesday, while Netflix and Taiwan Semiconductor round out the week Thursday.
Investors continue monitoring geopolitical tensions. Weekend negotiations between the United States and Iran in Pakistan concluded without a peace agreement after Tehran declined to commit against nuclear weapon development, Vice President JD Vance disclosed Saturday evening.
Crude Oil Remains Central to Market Direction
Since conflict erupted between the US and Iran, petroleum prices have dominated market attention. West Texas Intermediate crude finished Friday’s session near $98 per barrel, representing a substantial increase from approximately $68 before hostilities commenced.
Yet July delivery contracts are pricing oil around $85. Evercore ISI’s Julian Emanuel suggested WTI settling in the “low-to-mid $80s” would eliminate the current drag on equity markets.
The two-week truce between the United States, Israel, and Iran provided market support last week. The sustainability of this ceasefire will determine oil’s trajectory and, consequently, broader market sentiment.
Friday’s Consumer Price Index data showed headline inflation jumped 0.9% in March, marking the steepest monthly advance since June 2022. Analysts attributed the bulk of this increase to energy-related price spikes stemming from the regional conflict.
The University of Michigan’s consumer sentiment index dropped to an all-time low in April, although 98% of survey responses were gathered prior to the ceasefire announcement.
Technology Sector Shows Dramatic Performance Divide
The internal market divergence has intensified. The iShares Software Sector ETF dropped more than 7% last week and now trades 30% below year-end levels.
Salesforce leads the decline, shedding over 35% in 2026. AppLovin, Intuit, and ServiceNow have each tumbled more than 40%. Microsoft, Palantir, and Oracle have all declined more than 25%.
Chip manufacturers present a contrasting picture. The VanEck Semiconductor ETF has rallied over 20% year-to-date. Intel, Applied Materials, Lam Research, and Marvell Technologies have each soared more than 50%.
ASML delivers results Wednesday, followed by Taiwan Semiconductor Thursday. Taiwan Semiconductor’s preliminary March revenue figures released last week indicated robust AI chip demand persists.
Netflix also announces earnings Thursday, capping a critical week for corporate results.
