Markets In Focus: The Week That Was and What’s On Tap Week-Ending 5/1/2026
THE WEEK THAT WAS
The US equity market delivered another solid week of gains, with the major indexes closing at record highs amid resilient corporate earnings and a constructive macro backdrop. The S&P 500 advanced 0.9%, the Nasdaq Composite rose 1.2%, and the Russell 2000 gained 0.9%. The Invesco S&P 500 Equal Weight ETF (RSP) lagged with a 0.4% return, underscoring a modest narrowing in market breadth as leadership remained somewhat concentrated. All three major indexes finished the week at fresh peaks, reflecting sustained investor confidence.
April proved exceptionally strong across the board. The S&P 500 posted its best monthly performance since November 2020 with a roughly 10% advance, while the Nasdaq and Russell 2000 also logged impressive gains. This momentum highlights the market’s underlying resilience even against periodic geopolitical noise.
Sector performance was mixed but tilted positive. Technology and communication services led, buoyed by AI enthusiasm, while energy showed relative strength amid elevated oil prices. Defensive areas such as consumer staples and utilities trailed, along with pockets of weakness in real estate.
Earnings season provided further tailwinds. Five of the Magnificent 7 companies reported, underscoring that the AI infrastructure buildout remains in its early innings, with capital expenditure plans either confirmed or expanded. This dynamic fueled ongoing strength in AI-related names and supporting “shovel” plays. Elsewhere, Coca-Cola (KO), Merck (MRK), Caterpillar (CAT), Mastercard (MA), Visa (V), and Starbucks (SBUX) generally delivered results at or above consensus, reinforcing the health of both consumer and industrial franchises.
On the macro front, data releases were largely supportive. Durable goods orders rose 0.8% in March, exceeding expectations and pointing to firm business investment. The advance estimate for first-quarter GDP showed 2.0% annualized growth, a respectable pace though slightly below forecasts. March PCE inflation came in firmer than desired, with the core reading reflecting persistent price pressures, yet markets appeared unfazed.
Geopolitically, on-again, off-again US-Iran ceasefire discussions kept oil prices elevated. Investors nonetheless shrugged off the headline risk, prioritizing corporate fundamentals and economic resilience as the week closed on a high note. Overall, the equity market’s momentum remains constructive heading into the next weeks slew of earnings.
THE WEEK AHEAD
The upcoming week features several key U.S. economic releases that will help shape views on labor market momentum. On Tuesday, May 5, the Job Openings and Labor Turnover Survey (JOLTS) for March will be released, providing insight into hiring demand. The week culminates on Friday, May 8, with the April Non-Farm Payrolls report. Consensus expectations point to approximately +73,000 jobs added, with the unemployment rate holding steady around 4.3-4.4%.
It is also a heavy earnings period, with more than one-third of S&P 500 companies scheduled to report Q1 results. Notable large-cap names expected to release include major players in technology (PLTR, ARM, ALAB), energy (VST, OXY and LEU), and consumer sectors (DIS, MCD, CELH, CVS), that should provide a good glimpse into the health of the AI theme (on top of the solid news we got this week, the health of the consumer/spending patterns. And a glimpse on how higher fuel costs may be creeping into margins.
Geopolitically, attention remains on developments in the Middle East. A fragile ceasefire between the U.S., Israel, and Iran has been in effect since early April following the February-March conflict that resulted in the death of Supreme Leader Ali Khamenei. Tensions persist around the Strait of Hormuz, where shipping disruptions and a U.S. naval blockade continue to influence energy flows and global supply chains.
These events are expected to drive volatility in U.S. equity markets as investors assess economic resilience and external risks.
DISCLOSURES
The information presented is the opinion of Legacy Bridge, LLC., and does not reflect the view of any other person or entity. The information provided is believed to be from reliable sources, but no liability is accepted for any inaccuracies. This is for information purposes and should not be construed as an investment recommendation. The opinions expressed are subject to change without notice. Reliance upon information in this material is at the sole discretion of the reader. This information is not intended to be complete or exhaustive and no representations or warranties, either express or implied, are made regarding the accuracy or completeness of the information contained herein. This material may contain estimates and forward-looking statements, which may include forecasts and do not represent a guarantee of future performance. Past performance is no guarantee of future performance. Investing involves risks. Legacy Bridge LLC., is an investment adviser registered with the U.S. Securities and Exchange Commission.
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.
