U.S. equities began the week with a continuation of the relentless semiconductor led rally that propelled all the major averages into new highs until a dramatic mid-week sector rotation occurred.

U.S. equities extended their rally for a ninth consecutive week, with the S&P 500 climbing as easing oil prices, resilient earnings, and AI-linked momentum overcame inflation concerns. Alongside the S&P, the Nasdaq-100, Nasdaq Composite, and DJIA all closed at record highs on Friday, with only the Russell 2000 pulling back a touch from Thursday’s record close.

After dipping early in the week, pressured by rising yields and the imminent possibility of renewed military conflict with Iran, US equity indices reversed course by midweek and ended up either just beneath (S&P 500), at (Nasdaq 100), or above all time highs (DJIA.) Nvidia, the bluest of the blue-chip chipmakers, announced earnings and revenues that once again beat street estimates, yet the stock and broader market barely responded.

Major US equity indices pushed to fresh highs early in the week, as AI and semiconductor strength helped support the S&P500 and Nasdaq, before rising yields and renewed inflation concerns pressured growth stocks
into the close. Market leadership remained narrow and tech-driven, with investors continuing to reward AI- related earnings momentum, though high-multiple equities remain sensitive to any backup to rates.

U.S. equity indexes extended their April rally, rising modestly last week as the S&P500 and Nasdaq reached fresh record highs, led by Big Tech after stellar earnings boosted share prices. Ten of eleven S&P500 sectors finished higher on the week – materials were the sole loser.

The chief macro event risk at the moment relates to the Fed—the impact of this week’s meeting will likely come more from the statement and press conference than the rate decision itself. Will policymakers emphasize sticky inflation, oil-driven price risk, still-resilient growth, or any opening for future rate cuts?