Weekly Market Recap — Week of April 21–25, 2026

The Big Picture

Stocks extended their remarkable April comeback, with the S&P 500 and Nasdaq closing Friday at fresh all-time highs. The rally, built on ceasefire hopes, strong earnings, and a resilient consumer, has caught many traders off guard given the backdrop of an ongoing war in the Middle East. As one strategist put it, "There's been a crazy disconnect between the headlines in the war and what's going on in the market."

Index Performance

For the week, the S&P 500 rose 0.6% to close at 7,165, the Nasdaq added 1.5% to finish at 24,837, and the Dow slipped 0.4% to 49,231, ending a three-week winning streak for the blue-chips. April as a whole has been a stunning turnaround month: the S&P 500 is up more than 9% month to date, the Nasdaq has surged over 15%, and the Dow has gained more than 6%.

What Drove Markets

The ceasefire framework remained the market's north star. Early in the week stocks slid as the existing truce neared expiration and planned peace talks in Islamabad fell through, with Vice President Vance canceling a planned trip. But sentiment flipped on Wednesday when President Trump extended the U.S. ceasefire indefinitely, citing Iran's "seriously fractured" government. The S&P 500 and Nasdaq both hit record highs that session.

Oil prices remained volatile but have eased meaningfully from their peaks. WTI crude closed the week around $94/barrel, still elevated but well off the $111+ levels seen in early April, helping take some pressure off inflation fears and rate expectations.

Earnings Season in Focus

Corporate results have been a major tailwind. With 28% of S&P 500 companies reporting, blended Q1 earnings growth stands at 15.1%, well above expectations coming into the season. A remarkable 84% of companies have beaten EPS estimates, above the 1-year, 5-year, and 10-year averages. Net profit margins hit 13.4%, the highest on record since FactSet began tracking in 2009.

Standout results this week included Boeing, which posted a smaller-than-expected loss and better-than-forecast revenue. GE Vernova surged 7% after topping revenue expectations. UnitedHealth jumped more than 7% after beating on both earnings and revenue and raising its full-year outlook. Intel was the headline mover of the week, surging 23% to a new all-time record high after a blowout quarter fueled by AI-driven demand for CPUs and foundry revenue that climbed 16% year over year.

On the downside, FICO fell more than 13% after federal regulators announced that Fannie Mae, Freddie Mac, and the FHA will accept alternative credit scores for mortgage underwriting, a direct challenge to FICO's dominant market position.

Corporate Headlines

Apple announced that CEO Tim Cook will step down on September 1, with hardware chief John Ternus taking over. Apple's Q1 earnings are due Thursday, Cook's final report as sitting CEO. Separately, Tesla reported Q1 revenue of $22.39 billion, beating estimates, with gross margins of 21.7% well above the 17.7% expected. The company highlighted expanding its Robotaxi service to Dallas and Houston as a key growth driver.

Fed Watch

The Department of Justice dropped its criminal probe into Fed Chair Jerome Powell on Friday, clearing the path for Kevin Warsh's confirmation hearings to proceed. Warsh, Powell's nominated successor, is known for his hawkish inflation views, a potential point of tension with President Trump's push for lower rates. Traders are currently pricing in a 100% chance the Fed holds rates steady this week.

🔭 Week Ahead — April 27–May 1, 2026

The Calendar

Monday kicks off with Verizon earnings. Tuesday brings Consumer Confidence for April, along with results from Visa, Coca-Cola, UPS, General Motors, Starbucks, and T-Mobile. Wednesday is the biggest day of the week and possibly the quarter, with the FOMC rate decision at 2:00 p.m. ET, followed by earnings from Alphabet, Amazon, Meta, and Microsoft all reporting after the bell. Thursday delivers the PCE price index, Personal Income data, and Apple's earnings. Friday wraps the week with ISM Manufacturing for April, and energy giants Exxon Mobil and Chevron report.

Key Themes to Watch

Magnificent Seven earnings. This is the most important earnings week of the season. Microsoft, Alphabet, Amazon, Meta, and Apple all report, marking the first true test for Big Tech since the Iran war began reshaping the economic landscape. Morgan Stanley estimates the group's net income will grow 25% in 2026 versus 11% for the rest of the S&P 500. Investors will be laser-focused on AI capital spending commentary, particularly after Meta's recent 8,000 layoffs and Microsoft's voluntary buyout packages raised questions about cost discipline.

The Fed meeting. Wednesday's FOMC decision is widely expected to be a hold at 3.5% to 3.75%, but Jerome Powell's press conference will be closely scrutinized, especially as this may be his second-to-last meeting as chair. Any commentary on the inflation trajectory, the impact of elevated oil prices, or the growth outlook will move markets.

PCE on Thursday. The Fed's preferred inflation gauge for March will give investors and policymakers a cleaner read on how the oil shock is filtering through to core prices.

Energy supermajors. Exxon and Chevron report Friday. With oil still near $94/barrel, the results will offer a ground-level look at how energy companies are navigating both the Iran disruption and shifting supply dynamics.

Bottom line: The market arrives at the most consequential week of earnings season sitting at all-time highs, a remarkable reversal from the correction territory of just weeks ago. The Mag Seven results and Powell's potentially final press conference as Fed chair will either validate this rally or expose it. Buckle up.

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Important Disclosures

 Disclosures This material is for informational purposes only and is not investment advice or a recommendation to buy or sell any security. Past performance is not indicative of future results. Investing involves risk, including loss of principal. Asset allocation and diversification do not ensure a profit or protect against loss. Please review your specific circumstances with us before making any changes to your portfolio.