US markets extended their rally during the week, with major indices reaching fresh records as investors looked past geopolitical tensions and focused on strong corporate earnings from technology giants. The S&P 500 ended the week higher, marking its fifth consecutive weekly gain and longest winning streak since late 2024, driven by resilient earnings and signs of economic strength. Treasury yields climbed across the curve as war-induced inflation concerns and robust manufacturing data dimmed expectations for near-term Federal Reserve rate cuts. Oil prices rose for the week as the Iran conflict continued to disrupt global supply. The PCE (personal consumption expenditures) price index increased 0.7% in March—the fastest monthly pace since mid-2022—driven primarily by a 21% surge in gasoline prices, pushing the year-over-year PCE rate to 3.5%. At last week’s FOMC (Federal Open Market Committee) meeting, the Federal Reserve held its benchmark interest rate steady in the range of 3.5%-3.75%. Overall, markets demonstrated remarkable resilience in navigating elevated geopolitical risks while corporate fundamentals remained solid, though inflation pressures from energy costs present ongoing challenges for investors and policymakers alike.
