Markets ended the week higher with the S&P 500 at a new record high, as the index notched its 6th consecutive week of gains, its longest such streak since 2024. The Middle East remained a focal point for investors along with first quarter earnings.
News out of the Middle East continued to focus on the prospects of a longer-term peace plan, with much of the week having an on again, off again quality to it. While equity markets were more muted in their reaction, energy prices remained volatile, with US oil prices trading as high as $106/barrel and as low as $89. Higher jet fuel prices, which have nearly doubled in the US since the beginning of March, contributed to the demise of Spirit airlines, resulting in the loss of nearly ~$17K jobs.
Over the weekend, Iran responded the US’s most recent peace proposal. Though the exact terms of the deal were unclear, President Trump described Iran’s response as “totally unacceptable.” The apparent inability of the two sides to reach any sort of deal suggest energy prices will continue to face upward pressure in the near term.
Through Friday, 89% of S&P 500 companies had reported 1Q26 earnings, with 84% of those companies beating their consensus estimate. According to industry group FactSet, consolidated earnings growth for 1Q26 is expected to be 27.7%, which if achieved, would mark the 6th consecutive quarter of double-digit earnings growth. It also marks the highest earnings growth rate since 4Q21.
