LPL Research provides its Weekly Market Performance for the week of April 27, 2026. U.S. equities advanced for a fifth straight week despite cautious sentiment driven by geopolitical uncertainty in the Middle East, rising oil prices, and mixed reactions to AI-related developments and earnings. However, markets ultimately focused on positive takeaways and a broadly upbeat earnings backdrop. Global equities also gained ground, with Europe supported by steady central bank policies and a late-week drop in oil futures, while Asia extended gains broadly on the back of tech strength. Fixed income markets faced pressure from fiscal concerns, partially offset by improved demand from March’s weak outcomes. Commodity markets were led by continued gains in oil, while the yen rallied on likely intervention.

Stock Index Performance

S&P 500 Index Sectors

Fixed Income and Commodities

Source: LPL Research, Bloomberg 5/1/26 @3:13 p.m. ET
Disclosures: Indexes are unmanaged and cannot be invested in directly.

U.S. and International Equities

U.S. Equities: Cautious sentiment kept traders from making outsized moves for most of the week, with Magnificent Seven earnings and geopolitical developments at the forefront. Higher oil prices, lingering uncertainty around the Strait of Hormuz, and artificial intelligence (AI) jitters on OpenAI missing internal goals pressured major averages. However, Wall Street bulls persevered for a fifth straight weekly advance for the S&P 500. Investors shook off canceled negotiations and a ramp in U.S.-Iran rhetoric to focus on better-than-expected results from four of corporate America’s five main AI hyperscalers (amid a broadly blockbuster earnings season thus far). Strength in first quarter economic data through the headwinds of the Iran conflict and reports of a fresh proposal from Tehran also helped drive late-week gains. 

In earnings, Google-parent company Alphabet (GOOG/L) stated cloud and AI offering demand remains high, boosting confidence that massive investments are paying off, while Amazon (AMZN) rose on strong sales results for its Amazon Web Services unit. Meta (META), however, faced some scrutiny around spending after flagging rising component and data center costs, while Microsoft’s (MSFT) cloud growth failed to inspire. Plus, Apple (AAPL) rallied after the iPhone maker posted a surprisingly strong revenue forecast.

International Equities: The European benchmark STOXX 600 Index edged higher over a holiday-shortened week for many markets. Higher crude prices acted as an overhang for most of the week, denting sentiment before stocks rebounded as upward pressure on oil prices eased late in the week. Key monetary policy decisions were also among focal points. The U.K.’s FTSE 100 Index rallied Thursday after the Bank of England held rates and Governor Andrew Bailey stated holding rates is a “reasonable place” to be — but suggested hikes remain on the table in the event of a continued energy supply disruption. Shortly thereafter, the European Central Bank also left rates unchanged, awaiting more clarity on economic implications of the U.S.-Iran conflict.   

Asian equities capped a fourth week of gains amid holiday-thinned trading Friday. Japanese markets ended mixed, paring back gains as the yen strengthened as a result of verbal and suspected physical intervention from central bankers in Tokyo for the first time since 2024. This followed the Bank of Japan holding rates steady and offering some hawkish-leaning takeaways two days prior. Meanwhile, amid a busy earnings calendar, investors continued to favor AI-related names and suppliers on strong earnings growth expectations, powering outperformance for Korea. Taiwan ended little changed and Hong Kong fell, while Greater China rose with some support from upbeat earnings from rare earth and insurance names.

Fixed Income, Currency, and Commodity Markets

Fixed Income: Core bonds, measured by the Bloomberg Aggregate Index, traded lower this week. A couple of moving parts drew attention and weighed on weekly performance, one being the lingering overhang of fiscal risks. Fitch Ratings’ April 30 rating affirmation highlighted U.S. deficits running far above other double‑A peers, with deficits near ~7% of gross domestic product in 2026–27 and debt exceeding 120% of gross domestic product. Fitch cited tax cuts under the One Big Beautiful Bill Act, limited tariff offsets, and rising age‑related spending as key pressures, noting November’s midterm elections as pivotal for fiscal credibility.

Meanwhile, this week’s $183 billion slate of two‑, five‑, and seven‑year Treasury auctions showed improved demand versus March’s weak outcomes, with bid‑to‑cover ratios back to normal ranges. The results align with Treasury Borrowing Advisory Committee (TBAC) observations of broadly resilient demand, though a compressed auction calendar and ongoing supply fatigue capped performance. The juxtaposition of Fitch’s warning and smoothly clearing auctions suggests markets can still absorb elevated issuance. However, history shows this resilience can fade quickly if deficit expectations rise or investors demand greater risk compensation.

Overall, Treasury markets remain orderly, but the system is running on borrowed confidence. Auctions continue to clear, allowing fiscal deterioration to be deferred rather than addressed. In our view, with markets arguably complacent relative to the scale and persistence of deficits, longer‑dated yields are biased to remain elevated — or move higher — as fiscal risks reassert themselves.

Commodities and Currencies: The broader commodities complex gained ground this week with energy prices firmly remaining in the driver's seat. With Tehran still blocking the Strait of Hormuz and the U.S. Navy blocking Iranian crude exports, West Texas Intermediate (WTI) and Brent crude prices rallied back near recent highs amid some caution from analysts that several countries may face acute oil shortages soon. Nonetheless, futures prices trimmed weekly gains on Friday’s report of Iran’s latest proposal to Washington. Also of note, U.S. crude exports scored fresh records with global buyers as the globe turns to American producers to offset the supply crunch. Gold prices eased and silver spot prices edged higher. In currencies, yen intervention drove strength in the Japanese currency. The moves came after the yen weakened through the physiologically important 160 yen per dollar threshold as a wide U.S.-Japan rate differential continues to favor the dollar following this week’s central bank decisions. The U.S. dollar weakened. 

Economic Weekly Roundup

Fed Rate Decision. In a dramatic twist for Chair Powell, three regional presidents dissented, not over the rate decision itself, but over how it was communicated. Expect additional tension as a new Fed chair attempts to implement a new policy regime.

• The rate‑setting committee kept policy rates unchanged, with one member favoring a 25‑basis‑point cut. No surprise here.
• In an unusual move, three regional presidents objected not to the rate decision but to the implied forward guidance, most likely the use of the word “additional.”
• Unrest in the Middle East remains the primary source of uncertainty for both the growth and inflation outlook.

Economic Data Highlights: Two key points from Thursday morning’s slate of data were the strong contribution from business capex and the warning signs from weakening disposable personal income. Our forecast for Q2 economic growth is below.

• Core PCE accelerated to 3.2% on an annual basis in March, up from 3.0% the previous month. Despite the price shock in March, spending adjusted for inflation rose 0.2% m/m after rising an upwardly revised 0.3% m/m in February. Strong spending contributed to Q1 GDP growth.
• In a related report, the economy grew 2.0% annualized in Q1, with one percentage point contribution coming from consumer spending. I expect a further deceleration in growth in the coming quarters yet still minimal recession risks.

Business investment continues to power the economy. If the late 90s are the pattern, we could expect non-residential investment to contribute to growth for the rest of the year. Slowing income growth will likely impact consumer spending in Q2 and Q3. Looking ahead, we expect Q2 GDP growth to be 1.8% annualized.

The Week Ahead

The following economic data is slated for the week ahead:  

• Monday: Factory Orders (Mar), Durable Goods Orders (Mar final), Capital Goods Orders and Shipments (Mar final)
• Tuesday: Trade Balance (Mar), S&P Global U.S. Services and Composite PMIs (Apr final), ISM Services Index (Apr), New Home Sales (Feb and Mar), JOLTS Jobs Report (Mar), Building Permits (Mar final)
• Wednesday: MBA Mortgage Applications (May 1), ADP Employment Change (Apr), U.S. Treasury Quarterly Refunding Announcement
• Thursday: Challenger Job Cuts (Apr), Nonfarm Productivity (1Q preliminary), Unit Labor Costs (1Q preliminary), Initial Jobless Claims (May 2), Continuing Claims (Apr 25), Construction Spending (Feb and Mar), New York Fed One-Year Inflation Expectations (Apr), Consumer Credit (Mar) 
• Friday: Change in Nonfarm, Private, and Manufacturing Payrolls (Apr), Average Hourly Earnings (Apr), Average Weekly Hours All Employees (Apr), Unemployment Rate (Apr), Labor Force Participation Rate (Apr), Underemployment Rate (Apr), University of Michigan consumer sentiment report (May preliminary), Wholesale Trade Sales (Mar), Wholesale Inventories (Mar final)