The US stock market experienced a broad rally despite ongoing geopolitical tensions.
US Stock Market Performance
The stock market showed significant resilience, and the S&P 500 reached a new all-time high, rising 3.6% for the week. The Dow Jones Industrial Average gained 3.0%, the Nasdaq Composite jumped 4.7%, and the Russell 2000 Small Caps index rallied 4.0%. Overall sentiment remained strongly bullish.
CBOE VIX Volatility
The CBOE VIX trended steadily downward, opening the week on April 13 at 20.61 and dropping significantly to 17.48 by the market close on Friday, April 17.
Earnings Announcements
This week was the start of the Q1 2026 earnings season, led by major financial institutions. Goldman Sachs reported earnings on Monday, April 13, and delivered strong performance despite volatile market conditions. GS reported net revenues of $17.23 billion and a diluted earnings per share (EPS) of $17.55.
Geopolitical Events
A primary focus of global markets was the Middle East, specifically the status of a nearly seven-week ceasefire agreement involving Iran, Israel, and the US.
Ceasefire Tensions: The market experienced a slight dip late in the week as Iran questioned the US's adherence to the agreement, raising concerns about whether the ceasefire would hold. Pakistan's army chief continued to meet with Iran's parliament speaker to press for an extension of the pause in fighting.
Oil Prices: The geopolitical uncertainty heavily impacted energy markets. Concerns over the critical Strait of Hormuz pushed oil prices higher. Brent crude rose to settle at $99.39 a barrel as traders weighed the risk of peace talks breaking down.
