A look back
- The S&P 500 rose 0.6% for its fourth-straight weekly gain. Though the technology sector extended its torrid run since the start of April, gains were narrower than in recent weeks. The S&P 500 Equal Weight index dropped -0.5% and international developed markets fell -2.7%.
- Yields rose with inflation and high oil prices front of mind for investors. The 2-year U.S. Treasury yield climbed to 3.77%, while the 10-year yield closed the week at 4.30%, still well below the March peaks.
- Stronger-than-expected Retail Sales highlighted a relatively light week of economic data. Meanwhile, U.S. crude oil closed at roughly $94/barrel, up from around $83/barrel at the end of the previous week.
A look ahead
- Earnings season takes center stage with 182 companies in the S&P 500 set to report, including five of the Magnificent Seven. The technology sector is expected to generate 46% year-over-year earnings growth this quarter, well ahead of all other sectors and the S&P 500’s 15.1% expected growth.
- The Federal Reserve has its policy meeting this week. While the central bank is widely expected to hold rates steady, investors will closely watch Chair Powell’s post-meeting press conference, potentially his last as FOMC Chair.
- Economic releases: FOMC meeting, Housing starts, Q1 GDP, Core PCE, ISM Manufacturing.
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