Weekend Update, April 20th, 2026

April 20, 2026

Record Highs, Lower Oil, Tech Stocks Leading

Key Takeaways Last Week

U.S. stocks extended their rebound and pushed to fresh highs. The S&P 500 rose about +4.5%, the Dow about +3.2%, the Nasdaq about +6.8%, and the Russell 2000 about +5.6% for the week ended Friday, April 17, 2026.  Markets were driven by optimism around a reopening of the Strait of Hormuz and hopes for de-escalation in the Iran conflict, which helped knock oil sharply lower on Friday.

  • Oil’s collapse late in the week eased immediate inflation fears and improved risk appetite, especially for consumer, transportation, and growth-sensitive stocks.
  • Earnings season began on a constructive note, with strong early bank results and upbeat AI-related commentary from TSMC helping support sentiment.
  • Technology stocks rebounded and leadership was dominated by Mega cap stocks driving gains. Breadth remained somewhat narrow and geopolitical risk remained unresolved into the week.

U.S. Stock Performance – Index and Sector Moves

Financial markets improved during the week ending 4/17

US Equities.

Source: Seeking Alpha

Financial markets rose during the week ending April 17, 2026. The main drivers were easing Middle East shipping fears during the trading week, lower oil prices, falling Treasury yields, and encouraging early earnings reports. These forces improved risk appetite and pushed the major indexes to new highs. U.S. equity indexes finished the week higher overall. The S&P 500 rose about +4.5% to 7,126.06. The value-biased Dow Jones rose about +3.2% to 49,447.43. The tech-heavy Nasdaq rose about +6.8% to 24,468.48, and the Russell 2000 gained about +5.6% to 2,776.90.

Year to date, the S&P 500 is up about +4.1%; the Dow 30 is up about +2.9%; the Nasdaq is up about +5.3%; while the Russell 2000 is up about +11.9%.

Sector performance was led by growth-oriented sectors including consumer discretionary, industrials, and technology sectors, while energy lagged sharply as crude collapsed and the Energy Select Sector SPDR fell – 5.3% on Friday alone. Leadership rotated away from inflation hedges and toward lower-oil beneficiaries, cyclicals, and growth. In single stocks, notable movers included Tesla, Palantir, and GE Vernova, reflecting AI infrastructure strength, and renewed cyclical enthusiasm.

US Equity Sectors.

Source: Seeking Alpha

S&P 500 Weekly Leaders and Laggards Ranked (best available weekly % change ordering):

  • United Airlines (UAL), +7%+ Boosted by a sharp drop in oil prices, lowering fuel costs and improving profit outlook
  • Royal Caribbean (RCL), +7% falling oil + improved travel demand sentiment
  • Oracle (ORCL), +12% optimism around enterprise AI growth
  • Sandisk (SNDK), +11% Nasdaq-100 inclusion news and continued AI/data demand tailwinds

Bottom S&P 500 – WTD Laggards (Last Week)
Laggards were driven by a sharp retreat in energy and other oil-sensitive shares after WTI plunged and markets priced in better odds of near-term de-escalation.

  • LyondellBasell (LYB), −10%, falling oil/chemical prices after supply disruptions eased
  • Dow Inc. (DOW), −10%, chemicals weakened as oil prices dropped
  • Netflix (NFLX), −10%, weak forward guidance (revenue + profit outlook

US Equity Factors.

Source: Seeking Alpha

International/Global

International markets were mixed to firmer as investors reacted to developments in the Iran conflict and the temporary reopening of the Strait of Hormuz during Friday trade. Europe traded higher on Friday, while Asian markets were weaker overnight, according to Edward Jones. Global investors remain focused on whether shipping through Hormuz can remain open, given its importance to oil supply and inflation expectations.

Volatility & Risk Sentiment

Equity risk sentiment improved further. The VIX closed at 17.48 on April 17, down from 30 during the earlier Iran-war scare. That suggests lower demand for downside protection as equities pushed to record highs.

Bond market volatility / MOVE Index: 65

The market continues to debate whether the first-quarter selloff was mostly an energy-driven correction or the beginning of a broader macro scare.

Bonds, Credit & Interest Rates

Treasury yields finished the week lower. The 2-year Treasury yield ended near 3.752% and the 10-year Treasury yield near 4.284% on April 17. The 30-year Treasury traded near the upper 4.9% area.

The curve modestly steepened versus the very front end but remained historically inverted between 2s and 10s. Lower yields mattered because they helped support equity multiples and reinforced the view that falling oil could ease immediate inflation pressure. Credit conditions looked stable to slightly improved, though private-credit and spread concerns have not fully disappeared.

Economic Data, Monetary Policy & Earnings

The week’s most important economic developments included the March PPI release and the March industrial production report. BLS said March CPI had risen 0.9% month over month and 3.3% year over year, while core CPI rose 0.2% in March and 2.6% over the prior 12 months. The Census Bureau also noted that the March retail-sales release originally due during the week was postponed to April 21, 2026, so that report was not available for the April 17 week. The Federal Reserve reported that industrial production fell 0.5% in March, while manufacturing output fell –0.1%.

The Fed held rates steady at its March 17–18 meeting and said activity was expanding at a solid pace while inflation remained somewhat elevated.

Important earnings reports included major banks and TSMC. Citi reported first-quarter 2026 net income of $5.8 billion and EPS of $3.06 on revenues of $24.6 billion. TSMC reported strong first-quarter growth and

raised its 2026 outlook, supported by AI demand. Key themes from earnings were AI spending, strong large-bank results, resilient margins, and continuing infrastructure demand.

Commodities, Currencies & Macro Assets

Commodities were driven by de-escalation hopes during the trading week. WTI crude ended near $82.59/bbl on Friday after a roughly 9% daily drop on April 17. Oil remains central to the macro narrative because of its inflation and geopolitical importance.

Gold ended near $4,800/oz.

The Dollar Index fell back below 100. A weaker dollar and lower oil eased financial conditions.

Bitcoin rallied to $75,000.

Commodities.

Source: Seeking Alpha

Liquidity Conditions

Equity liquidity conditions were better. Treasury liquidity improved.

Flows & Positioning

The market rallied for its 3rd straight +3% return week.

What Matters This Week

Markets will focus on:

US (Israel) and Iran negotiations around the Strait of Hormuz, Iran nuclear enrichment, and Lebanon bombings.

Earnings Reports (Big Tech & Key Sectors)
Investors will watch results and forward guidance closely—especially from AI-driven and mega-cap companies that are leading the market.

Tuesday: Northrop Grumman’s (NOC), Halliburton (HAL US)

Wednesday: Tesla (TSLA US)
Thursday: RTX (RTX US) and Lockheed Martin (LMT US), UnitedHealth (UNH US), * GE Aerospace (GE US), : Dow (DOW US), American Express (AXP)

Friday: Procter and Gamble (PG)

Federal Reserve Warsh Confirmation Hearings
Any comments from Federal Reserve officials on interest rates, inflation, or policy timing could shift markets

Geopolitics & Oil Prices
Ongoing tensions in energy-sensitive regions and movements in oil prices may drive inflation expectations.

Bottom Line

Markets rallied sharply for the 3rd week in a row, surpassing the 7000 mark and closing at new ATHs on the year.

Stock Talk

This Time it’s Different. Or Not?

Past performance is no guarantee of future results. Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges. The preceding discussion is for informational purposes only. Investing involves risk and no reference to any security listed above should be considered a buy or sell recommendation. Advisory services are provided through Oak Harvest Investment Services, LLC, a registered investment adviser.