Key Takeaways
- Markets advanced for the fifth consecutive week, fueled by strong earnings from major technology companies.
- Corporate profits continue to outweigh concerns around geopolitical tensions and rising energy prices.
- Gas prices are climbing ahead of the summer driving season, with potential implications for consumer spending.
- The Federal Reserve held rates steady, though internal disagreements highlight uncertainty around future policy.
- A busy week ahead for both earnings and employment data could influence near-term market direction.
Market Overview: Earnings Strength Continues to Lead
Corporate profits, stocks, and gas prices are all moving higher.
Last week, earnings from Google, Amazon, Meta, and Apple came in exceptionally strong—helping to push major market indexes higher for the fifth consecutive week. At this stage, corporate profitability is clearly overshadowing ongoing tensions in the Middle East and the steady rise in gasoline prices.
From a market perspective, investors remain focused on results; and for now, the results continue to justify higher prices.
Market Index Performance: Last Week and YTD
| Index | Last Week | Year-to-Date |
|---|---|---|
| Dow Jones Industrial Average | 0.71% | 3.15% |
| S&P 500 | 0.95% | 5.67% |
| NASDAQ Composite | 1.24% | 8.18% |
| Russell 2000 | 0.79% | 13.18% |
| Foreign Stocks | 0.47% | 6.48% |
| Emerging Markets | 0.50% | 17.09% |
| Bloomberg US Aggregate Bond Index | (0.50%) | 0.07% |
| Bloomberg US Munis | (0.09%) | 1.19% |
The 10-Year US Treasury ended Friday with a yield of 4.372%. Oil remained over $100/barrel closing the week at $102.50.
Energy Prices & Consumer Impact: Watching the Gas Pump
Investors continue to operate under the assumption that Middle East tensions will ease and that gasoline prices will stabilize. For now, however, prices at the pump continue to climb.
In New Jersey, a gallon of regular gas is currently averaging approximately $4.43. For context, the all-time high was $5.08 per gallon, reached in June 2022.
Data sourced from daily-updated AAA fuel prices.
With the summer driving season approaching, the key question becomes: will higher gas prices begin to impact consumer behavior?
At this point, I am not seeing a meaningful slowdown in spending among higher-income households. However, for those with tighter budgets, the cost of filling up may begin to weigh more heavily on discretionary spending decisions.
Federal Reserve Update: Stability with Signs of Division
The Federal Reserve held rates steady this week — marking what is expected to be Jerome Powell’s final meeting as Chairman before Kevin Warsh assumes the role.
The Federal Reserve left interest rates unchanged last week, as widely expected.
However, the underlying details were more nuanced. One Fed member favored a modest 0.25% rate cut, while three regional presidents objected—not to the decision itself—but to the forward guidance being communicated.
This divergence highlights the uncertainty surrounding the path of monetary policy in the months ahead.
Chairman Powell also indicated he intends to remain on the Federal Reserve Board after his term as Chairman concludes later this month. Notably, this would mark the first time such a transition has occurred since Marriner Eccles in 1948.
How will incoming Chair Warsh and outgoing Chair Powell mesh? It should be interesting.
The Week Ahead: Earnings and Jobs Data Take Center Stage
Looking ahead, the focus remains on corporate earnings, with over 100 S&P 500 companies and others set to report, including Palantir, Pinterest, AMD, Pfizer, Disney, DoorDash, Uber, McDonalds, and Airbnb.
On the economic front, several key data points will be closely watched:
- Tuesday: New Home Sales, JOLTS (job openings) report
- Wednesday: ADP Employment Report
- Thursday: Challenger Job Cuts, Consumer Credit
- Friday: Nonfarm Payrolls and Manufacturing Jobs Report
Between earnings results and labor market data, markets will have plenty of information to digest, particularly as investors continue to assess the strength of both the economy and corporate profitability.
Final Thoughts: Strong Markets, But Not Without Questions
Markets continue to move higher, supported by strong earnings, resilient consumer spending, and optimism around geopolitical outcomes.
At the same time, rising energy prices, mixed signals from the Federal Reserve, and the potential for shifts in consumer behavior remain important variables. As I’ve said many times, short-term market movements are often driven by headlines—but long-term success is built on discipline, diversification, and alignment with your financial goals.
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Thank you for reading!
Paul Levin, CFP®, ChFC®, RICP®, TPCP®
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
All market data sourced from The Wall Street Journal, May 1, 2026.
