Weekly Market Commentary

Global markets hit record highs as Q1 earnings continued to exceed expectations.  Despite continued tensions in the Middle East and the Strait of Hormuz effectively closed, investors bought mega-cap technology issues alongside Semiconductor companies.  AMD posted stellar earnings results, catalyzing technology shares higher.  NVIDIA will report earnings in a couple of weeks, and its results are expected to drive a 9% move in the stock price.  According to FactSet, 86% of the S&P 500 have reported Q1 earnings; of those, 84% have beaten on the bottom line, and 80% have beaten on revenue.  The quarter has seen Earnings Per Share growth of 27.7%, the best since the fourth quarter of 2021.  Revenue growth has come in at 11.3%.  Expectations are for full-year 2026 Earnings Per Share growth of 21%.  This is what has been driving markets higher. Yes, the global economy will still face significant consequences from the closure of the Strait of Hormuz and supply chain disruptions, but for now, the earnings story has taken precedence. The US continues to wait for a response to its most recent peace deal, even as the ceasefire appears more fragile than ever.  At this point, I am not sure we can even claim a ceasefire exists, as there have been several reports of Iranian attacks on Gulf Nation assets.  President Trump will meet with President Xi this week, but few believe anything consequential will come of it.  The war in the Middle East, trade, rare earth metals, and technology export curbs are likely on the table for discussion.  The two leaders are set to meet three more times this year.

The S&P 500 gained 2.3%, the Dow rose 0.2%, the NASDAQ increased by 4.5%, and the Russell 2000 added 1.7%.  Notably, the S&P 500, the NASDAQ, South Korea, and Japan hit record highs this week. US Treasury trade was quite volatile this week, tied to gyrations in oil and to several economic data prints.  The 2-year yield closed the week unchanged at 3.89%, while the 10-year yield fell by two basis points to 4.36%.  Fed Funds futures currently suggest no monetary policy changes in 2026.  Oil prices remained volatile amid news from the Middle East.  West Texas Intermediate fell 6.3% on the week to close at $95.39 per barrel.  Gold prices advanced by 1.8% to $4,730.20 per ounce.  Silver prices jumped 6.47% to $80.87 per ounce, while Copper prices surged 5.1% to $6.30 per Lb.  Bitcoin’s price increased by 2.8% to $80,800.  The US Dollar Index fell by 0.3% to 97.93.

NASDAQ 5/8/2026

The economic calendar was packed.  The Employment Situation report showed more payrolls than expected.  Non-Farm Payrolls increased by 115k versus expectations of 67k.  Private Payrolls increased by 123k versus the consensus estimate of 60k.  The Unemployment Rate stayed at 4.3%, while Average Hourly Earnings increased by 0.2%.  The Average Work Week increased to 34.3 hours from 34.2 hours.   While the report was better than expected, there were some concerns regarding earnings, which grew at 3.6% year over year, just above inflation.  The small margin may curb consumer spending.  JOLTS data showed fewer job openings from the prior reading at 6.886M.  ADP Private Payrolls increased by 109k versus the estimated 79k.  Initial Jobless Claims increased by 10k to 200k, while Continuing Claims fell by 10k to 1766k.  April ISM Non-Manufacturing stayed in expansion at 53.6, but fell from the prior reading of 54.  Finally, a preliminary look at the University of Michigan’s Consumer Sentiment showed a decline to 48.2, a record low for the data series.  The decline was attributed to increased energy costs and labor concerns.

Investment advisory services offered through Foundations Investment Advisors, LLC (“FIA”), an SEC registered investment adviser. FIA’s Darren Leavitt authors this commentary which may include information and statistical data obtained from and/or prepared by third party sources that FIA deems reliable but in no way does FIA guarantee the accuracy or completeness.  All such third party information and statistical data contained herein is subject to change without notice.  Nothing herein constitutes legal, tax or investment advice or any recommendation that any security, portfolio of securities, or investment strategy is suitable for any specific person.  Personal investment advice can only be rendered after the engagement of FIA for services, execution of required documentation, including receipt of required disclosures.  All investments involve risk and past performance is no guarantee of future results. For registration information on FIA, please go to https://adviserinfo.sec.gov/ and search by our firm name or by our CRD #175083. Advisory services are only offered to clients or prospective clients where FIA and its representatives are properly licensed or exempted.

Share:

View the Latest Commentaries:

Weekly Market Commentary

Markets ended the week mixed as investors assessed the implications of the US economic isolation of Iran, the fallout of increased tariffs on Canada, Nvidia Q2 earnings results, and the Fed Chairman’s speech at the Kansas City Federal Reserve’s Economic Symposium in Jackson Hole. Oh yeah, we were also treated to a slightly hotter print of the Fed’s preferred inflation measure, the PCE. On Monday, Treasury Secretary Bessent laid out a plan to isolate economic activity with Iran.  The plan, dubbed Economic D-day, promised economic punishment to any country doing business with Iran and suggested that, in the coming days, there will be announcements and actions taken against several entities that have worked alongside Iran to evade economic sanctions.  The US and Iran both said they would not return to the MOU signed in June, as negotiations have stalled.  Oil traded lower this week on reports that 10 million barrels

Weekly Market Commentary

US equity markets took a step back last week in what turned out to be a very busy week.  Increased yields on the long end of the curve prompted Treasury Secretary Scott Bessent to double buybacks of 10- to 30-year US Treasuries in an effort to temper the rise in rates.  The move was met with a rally in both bonds and stocks; however, it was short-lived, with much of the gains being given back within a day of the announcement.  A global debasement narrative has emerged as the US deficit topped $40 trillion.  The US Dollar sold off to levels not seen since May, while precious metals and Bitcoin prices soared.  Interestingly, the correlation between Gold and Bitcoin is the highest since Covid, following massive liquidity injections by global governments.  It’s notable that several other developed markets are facing similar pressure on their sovereign debt, including Japan, the UK,

Weekly Market Commentary

The S&P 500 forged a new all-time high as investors recalibrated interest-rate-hike expectations after an in-line print of the Consumer Price Index and a cooler-than-expected print of the Producer Price Index.  The probability of a rate hike in September fell to 32% from 55% a week ago. Interestingly, the short end of the US curve advanced while longer-dated Treasuries declined over the week amid concerns about the widening US deficit.  Treasury auctions this week were met with tepid demand and saw the 10-year and 30-year priced at yields not seen since 2007 and 2001, respectively. Oil prices rose as the US-Iran war continues while negotiations appear to be at an impasse.   The US signaled it would continue its blockade of Iranian ports to inflict economic pressure while Iran and the Houthis continued to attack cargo ships in the Strait of Hormuz and the Red Sea.  Second-quarter earnings continued to roll

Weekly Market Commentary

Giddy up!  US equity markets ripped higher in the first week of August as 2nd quarter earnings continued to impress.  According to FactSet, 88% of the S&P 500 have reported earnings, of which 86% have beaten Earnings Per Share estimates, while Earnings Per Share have grown by an impressive 50.4%.   76% of companies that have reported have beaten on revenues, with revenues growing by 15% in the 2nd quarter.  Standout companies this week included: Palantir, Caterpillar, MP Materials, Cloudflare, SpaceX, AMD, and Twilio. Tensions in the Middle East persisted as negotiations to partially open up the Strait of Hormuz between Iran and Oman continued.  Oil prices fell for the third consecutive week as rhetoric suggested a deal was close.  That deal has been elusive, to say the least, and concerns about the particulars remain.  Is the US even engaged in negotiations, will the passage of the Strait require a toll, will all