This is yet another up week—a rare occurrence over the past couple of months. We have entered the phase of earnings season where results and guidance from several heavyweight companies are helping to shape expectations for the broader market. In addition, lingering geopolitical risks in the Middle East continue to create significant uncertainty regarding the conflict’s outlook.
The Dow was the only major stock index to end the week moderately lower, while the S&P 500 and NASDAQ—two indices with greater exposure to AI-related companies—posted gains, with the NASDAQ rising by more than 2%.
AI, oil, and hedging were the dominant themes this week. Technology stocks rose nearly 4%, boosted by renewed enthusiasm in chipmakers and other infrastructure providers. The energy sector followed, rising more than 3% as concerns about the conflict increased again. Consumer staples, materials, and utilities were the other sectors that ended the week higher.
The bond market reacted negatively to renewed uncertainty in the Middle East, as peace talks faltered. The 5-year yield rose by 8 basis points, while the 10-year yield increased by 6 basis points. Meanwhile, Brent crude oil once again topped $100 per barrel.
This week has been far from calm, as the stalemate between the U.S. and Iran escalated somewhat. Meanwhile, strong revenue and guidance from Intel, driven by AI optimism, have further fueled investor enthusiasm. A look at today’s consumer sentiment also reflected the impact of the conflict, translating into higher inflation expectations.
There is likely to be more activity over the weekend, and Adams Wealth Advisor will return next week with further updates.