Markets ended the week with the S&P 500 at a new record high as the index extended its run of weekly gains to four, the longest such streak since October 2024. Ongoing developments in the Middle East, Senate confirmation hearings for the next Fed Chair, and a slew of earnings reports all vied for investor attention.
Middle East tensions remained elevated, first as the initial two-week ceasefire between the US and Iran expired and then as the two sides seized ships in the Persian Gulf. On Tuesday, with the ceasefire set to expire, President Trump announced he would extend it indefinitely until Iran presented a “unified proposal” to end the fighting, however, the blockade of Iranian ports would remain in effect for now. Over the course of the week, Iran seized several ships travelling through the Strait of Hormuz while the US seized at least one ship in the Strait and several other Iranian-linked vessels across the globe. Talks between the two sides, tentatively scheduled for the weekend failed to materialize, keeping tensions elevated.
On Tuesday, Kevin Warsh, President Trump’s nominee to be the next Fed Chair, appeared before the Senate Banking Committee where he faced questions on multiple topics including his commitment to Fed independence. Entering the hearing, the fate of Warsh’s nomination was uncertain as Republican committee member Thom Tillis said he would not vote for Warsh until the Department of Justice (DOJ) dropped its legal case against current Fed Chair Jay Powell. On Friday, DOJ acquiesced, dropping its case. On Sunday, Tillis announced he would support Warsh’s nomination, paving the way for it to proceed to the Senate for a full vote.
Through Friday, 28% 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 15.1%, which if achieved, would mark the 6th consecutive quarter of double-digit earnings growth.
