Markets In Focus: The Week That Was and What’s On Tap Week-Ending 4/3/2026
THE WEEK THAT WAS
U.S. equities delivered solid gains in the holiday-shortened week ending April 3, 2026. The S&P 500 rose 3.4%, the Nasdaq Composite advanced 4.4%, the Russell 2000 climbed 3.2%, and the Invesco S&P 500 Equal Weight ETF (RSP) gained 2.5%. March went out like a lamb, supported by mounting expectations that the Iran conflict is nearing resolution.
The dominant driver was a sharp drop in oil prices as de-escalation signals from the Middle East eased supply concerns and tempered near-term inflation risks, fostering a constructive risk-on tone. Breadth remained healthy, though large-cap concentration still contributed to the S&P’s edge over equal-weight names.
Sector leadership was pronounced: Technology and Communication Services posted the strongest advances, while Energy lagged materially on the oil decline. Defensive groups such as Utilities and Consumer Staples also trailed amid the shift toward cyclical exposure. AI-themed stocks rallied from an oversold status, with leading names in semiconductors, software, and cloud infrastructure again outpacing the broader market and reinforcing the theme’s structural momentum.
Next week brings the first wave of first-quarter earnings reports and key inflation readings that will help shape the near-term policy outlook.
THE WEEK AHEAD
As the US equity markets enter the week ending April 10, 2026, attention turns to a modest slate of macro releases amid lingering geopolitical tensions that continue to underpin oil prices near $100–110 per barrel. Investors will parse February Durable Goods Orders on Tuesday, where consensus anticipates a modest rebound around 0.6% month- over-month following recent volatility in manufacturing data, offering insights into capital spending resilience. Thursday’s February PCE release will be watched closely for signals on underlying inflation trends, with core measures expected to reflect steady but contained price pressures in line with the Fed’s dual mandate.
The earnings calendar remains exceptionally light, with few notable reports scheduled—a quiet period that underscores the tail end of the prior quarter. Broader first-quarter earnings season will gain momentum in the coming weeks as major banks begin reporting, potentially providing a clearer read on corporate health and forward guidance.
Geopolitically, the ongoing conflict involving Iran and associated disruptions in the Strait of Hormuz remain the dominant risk factor. Supply constraints have driven elevated oil prices, injecting cost pressures across sectors and sustaining uncertainty around global growth and inflation pass-through.
Collectively, these elements suggest US equities may trade with caution, as participants weigh inflation data against energy-market volatility in thin conditions.
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.
