April 20 Update
Incredible rally last week and for April.
Major averages regain the 2026 losses and ended last week up YTD.
Last week | 2026 | |||
Dow Jones Industrial Average | 3.2% | 2.9% | ||
S&P 500 | 4.5% | 4.1% | ||
Nasdaq Composite | 6.8% | 5.3% | ||
Russell 2000 | 6.5% | 11.9% | ||
One of the largest jumps in a 3-week period in history. All-time highs.
Certainly, the possibility of peace and resolution of global conflicts is a huge positive. But the rally has surely been assisted by other things. After all, we clearly don’t have an end to Iran war. Maybe we are closer, but problems and issues remain.
Beyond an end to the conflicts, trend chasing traders (FOMO), algorithms, and volatility control funds were a material part of this rally. Even the monthly option expiration last Friday helped push stocks to record levels.
Earnings season has started well with guidance increases. Analysts are forecasting 14.4% earnings growth in the 1st quarter. Lot of earning this week and the big tech and Mag 7 stocks are the last week of the month.
Busy this week – TSLA, IBM, SLB, INTC, NEM, AXP, LMT and many more.
Other news this week
March retail sales
Q1 GDP estimate
PCE
Personal spending