Weekly Market Snapshot

Global markets posted modest gains over the week on hopes of de‑escalation in the U.S.–Iran conflict, though Asian and European equities stayed subdued amid concerns that the U.S. blockade of the Strait of Hormuz could slow global growth. Oil prices eased on reduced near‑term supply fears. Luxury stocks fell on weaker Middle East demand. Technology companies and banks reported strong earnings or growth outlooks despite geopolitical and regulatory headwinds. U.S. markets digested economic data, solid bank earnings and optimism around Middle East peace supported sentiment, with major banks posting strong trading and investment banking results. Corporates like PepsiCo and Meta delivering positive news, and overall markets balanced easing inflation signals against lingering geopolitical risks. 

In global geopolitics, President Trump announced a ten-day ceasefire between Israel and Lebanon. President Trump also expressed his optimism for a possible end to the U.S.-Iran war, claiming Tehran had agreed to curb its nuclear ambitions, supply “free oil,” and reopen the Strait of Hormuz. Iran is yet to confirm these assertions. The U.S. also initiated a blockade of the Strait of Hormuz to pressure Iran into negotiations, after negotiations between U.S. Vice President JD Vance and Iranian representatives failed in Pakistan. China characterized the blockade as “dangerous and irresponsible”.

Weekly Market Movers — Key Highlights
  • Geopolitical optimism lifted global and U.S. equities, as hopes of easing U.S.–Iran tensions offset concerns over energy supply disruptions.
  • Strong U.S. bank earnings powered markets higher, with major lenders posting double‑digit gains in profits, trading revenues, and investment banking fees.
  • Oil prices slipped toward $93 per barrel, reflecting reduced near‑term supply fears despite continued risks from the Strait of Hormuz blockade.
  • AI driven growth stories stood out globally, with standout results from TSMC and ASML and Novo Nordisk’s AI partnership boosting investor interest amid mixed regional trends.
Global Updates
  • The MSCI All Country World Index rose over the week, as global equities recovered due to the hopes for a resolution to the U.S.- Iran war. However, Asian and European markets remained subdued over the week. The U.S. blockade on the Strait of Hormuz however amplified concerns of a global economic slowdown. However, the announcement of Israel-Lebanon ceasefire by President Trump partially alleviated investors’ concerns globally.
  • The U.K. economy rose by a higher-than-expected 0.5% in February
  • EasyJet has reported a £25 million ($34 million) surge in fuel costs due to the U.S-Iran war, which has led to a decline in customer bookings. 
  • Finance Minister Satsuki Katayama announced plans to support acquisition of energy supplies by Asian countries, utilizing a 600 billion yen ($3.8 billion) fund by the the Japan Bank for International Cooperation.
  • Stocks of luxury brands dragged following reports of declining revenues from the middle-east. Kering reported a 11% decline in first quarter retail revenue from the Middle East following the U.S.-Iran war. Shares of Hermes, LVMH and Christian Dior also dragged following this news. 
  • Dutch technology firm ASML reported strong first quarter net profit of €2.8 billion on a higher-than-expected net sales of €8.8 billion. The company also raised its projected net sales for 2026 to the €36 billion to €40 billion range. The company’s stock however dragged due to export restrictions on the company’s sales to China.
  • Novo Nordisk stock price rose after the company announced a partnership with OpenAI to utilize AI to analyze data for optimizing drug discovery and the deployment of treatments to patients. 
  • TSMC reported a higher-than-expected 58% surge in its first-quarter profit of $18.2 billion on a 35% (year-on-year) higher revenue of $35 billion. The company projected 30% higher full-year revenue driven by the growing AI-based demand for its chips. TSMC also raised its 2026 capital expenditure estimate to $52 billion-$56 billion.
  • Crude futures dropped toward $93 per barrel as optimism over a potential deal with Iran and a 10-day ceasefire between Israel and Lebanon eased immediate supply fears, despite ongoing blockades and warnings of long-term output disruptions.
U.S. Equity
  • U.S. equity markets advanced for the second consecutive week, with all major indices rising amid cautious optimism around the possibility for peace in the middle east. The ten day Israel-Lebanon ceasefire added to market optimism as investors digested economic data along with corporate earnings reports. Over the banking earnings week, banks reported gains from the debt financing of capital expenditure by technology firms. 
  • Producer Price Index rose by a lower than expected 0.5% and Core PPI by 0.2% in March. 
  • PepsiCo’s first quarter net income of $2.33 billion and adjusted EPS of $1.61 on a quarterly revenue of $19.44 billion beat expectations. Pepsi also reported higher sales volumes over the quarter for the first time in two years attributed to 15% price cuts on its products in North America.
  • Aehr Test Systems’ stock rallied after the company reported a record $41 million order for its semiconductor testing devices.
  • Meta stock rallied after the company announced a partnership with Broadcom for the development and production of custom AI chips for Meta’s AI data centers.
  • Bank of America reported a 13% jump in first quarter sales and trading revenue to $6.4 ​billion in the first quarter. The bank also reported 21% higher ​investment banking fees of $1.8 billion over the quarter.
  • Morgan Stanley stock rallied after the bank reported 29% higher first quarter profit of $5.57 billion on a higher than expected revenue of $20.58 billion. Trading revenues were 25% higher at $5.15 billion, while Fixed income revenues were 29%  higher at $3.36 billion.
  • Goldman Sachs reported a 19% higher EPS of $17.55 on a 14% higher first quarter revenue of $17.23 billion. The bank also reported 27% higher equities revenue of $5.33 billion and 48% rise in investment banking fees to $2.84 billion. The bank’s fixed income revenues declined by 10% to $4.01 billion.
  • Wells Fargo posted a Q1 net income of $5.25 billion and trading revenue of $1.35 billion on a lower-than-expected revenue of $21.45 billion. Wells Fargo also announced plans to layoff 5,000 job employees. 
  • JPMorgan Chase posted a 13% higher first quarter EPS of $5.94 on 20% higher revenue of $11.6 billion. Fixed income revenue rose by 21% to $7.1 billion  and equity income by 17% to $4.5 billion.
Fixed Income
  • The Bloomberg U.S. Aggregate Bond Index rose over the week. 
  • The U.S. 10-year Treasury yield rose slightly to 4.305% and the yield on the 2-year note dipped slightly to 3.775%.
  • The U.S. Dollar Index fell slightly to 98.2 over the week.