Markets In Focus: The Week That Was and What’s On Tap Week-Ending 4/10/2026
THE WEEK THAT WAS
The US equity markets posted solid gains for the second week in a row, as geopolitical relief trumped lingering economic crosscurrents. The S&P 500 advanced 3.6%, the Nasdaq Composite rose 4.7%, and the Russell 2000 climbed roughly 4.0%. In contrast, the Invesco S&P 500 Equal Weight ETF (RSP) underperformed, rising just 1.9%.
The dominant catalyst was the Iran conflict and subsequent cease-fire announcement, which sent oil prices sharply lower and provided a welcome tailwind for risk assets. Markets had priced in meaningful supply disruption risks from the Strait of Hormuz; the truce offered a timely de-escalation, easing energy-cost pressures and boosting sentiment across cyclicals. This relief rally proved especially kind to sectors less tethered to commodity volatility. On the macro front, inflation readings painted a nuanced picture. PCE (February) came in largely as expected (around 0.3% month-over-month, with the annual rate slightly softer than some forecasts), reinforcing hopes that underlying price pressures remain contained and supporting the case for eventual policy flexibility. CPI (March) came in roughly as expected on the headline but well above the previous month (hot due to energy, as widely anticipated) but slightly cooler than expected on core measures. This suggests the underlying inflation trend remains contained despite the energy shock pushing the annual headline rate to its highest level since mid-2024. Markets are likely to focus on whether this energy spike proves transitory or starts feeding into broader prices.
Durable goods orders disappointed with a decline (approximately -1.4% month-over-month), signaling some softening in manufacturing investment outside of volatile transportation components and hinting at cautious corporate capex plans. Sector leadership told a clear story as the risk trade appears to have taken hold: Technology led the pack, with AI infrastructure and compute names enjoying a notable resurgence after an extended re-rating period. Industrials, Consumer Discretionary, and Materials also outperformed, while Energy stood alone in the red—as one might expect when hopes of conflict resolution deflate the commodity premium. Within the AI trade, infrastructure and compute held up well, whereas traditional software continued to face selling pressure amid persistent investor concerns that advancing AI agents and automation tools could disrupt or supplant legacy SaaS licensing models and enterprise demand.
Next week kicks off the 1Q earnings reporting season alongside the release of March PPI, offering fresh clues on corporate resilience and wholesale price trends.
THE WEEK AHEAD
As the week ending April 17, 2026, unfolds, US equity markets will navigate the onset of first-quarter earnings season alongside fresh macroeconomic readings and lingering geopolitical developments. Tuesday brings the March Producer Price Index, with consensus anticipating continued moderation from recent hotter trends, though specific headline and core figures will be closely watched for signs of persistent wholesale price pressures that could influence inflation expectations and Fed policy views. Thursday’s initial jobless claims report will offer another gauge of labor market resilience amid a backdrop of scattered Fed Governor appearances, where comments on the economic outlook may subtly shape rate expectations and broader market sentiment.
Earnings will take center stage as major financial institutions kick off reporting, including Goldman Sachs, JPMorgan Chase, Citigroup, and Wells Fargo, providing early insight into banking sector health, net interest margins, and capital markets activity. Concurrently, the AI and semiconductor narrative advances with results from ASML and TSMC, whose performance could signal demand trends in advanced technology and global chip supply chains, potentially rippling through related equities.
Geopolitically, the recent US-Iran cease-fire and upcoming weekend negotiations introduce an element of uncertainty; any progress toward a more durable agreement, or setbacks involving the Strait of Hormuz and regional tensions, could affect energy prices and risk appetite across US equities. Collectively, these events will likely drive focused volatility as investors assess inflation signals, corporate fundamentals, and the evolving geopolitical landscape.
DISCLOSURES
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The S&P 500 generally represents performance of 500 large companies listed on exchanges in the U. S. It is one of the most commonly followed equity indices. The Nasdaq Composite Index is a market-weighted index that measures the performance of more than 3,000 common equities listed on the Nasdaq Composite Market. The Russell 2,000 Index is a market-cap weighted index that measures the performance of approximately 2,000 of the smallest companies in the Russell 3,000 Index. The MSCI ACWI captures Large and Mid-Cap representation across 23 Developed Markets (DM) and 24 Emerging Markets (EM) countries. With 2,921 constituents, the index covers approximately 85% of the global investable equity opportunity set. FactSet Research System is a financial data and software company that provides research for Wall Street professionals and individual investors.
