Investment Week at a Glance
Stocks finished higher for the week. The Dow Jones Industrial Average rose 3.0%, the S&P 500 was up 3.6%, and the NASDAQ rose 4.7%. Foreign stocks (MSCI EAFE) were up for the week, rising 4.0%. Bond prices were up for the week, with the 10-year U.S. Treasury ending the week at 4.35%. (Data source: Wall Street Journal)
Oil Prices Fall on Ceasefire Hopes
Last week, a ceasefire was agreed to between the US and Iran, helping ease oil prices for the time being. It is yet to be seen if this will lead to longer-lasting peace or if we see fighting pick up in the coming weeks. As we approach closer to the April 21st deadline, expect some volatility if peace talks seem to stall out. Oil prices will also likely continue their streak of volatility based on the outcome of the Strait of Hormuz and if ships are able to pass. Although there is some skepticism about how long the ceasefire lasts, it is positive that the 2 sides are working together in some fashion to stop the fighting.
Inflation Moves Higher for March
The CPI report, which was released last week, came in at 3.3% year-over-year and 0.9% for March alone. This was driven largely by a surge in gasoline prices of over 21%. This was the largest monthly increase in CPI since June of 2022, but markets were expecting this as the rise in oil prices was known. Higher oil prices also tend to push the price of other goods up as energy costs are baked into most products produced. If energy prices remain elevated, expect CPI to continue to come in hot as the sharp increase can move throughout the rest of the economy.
Hershey Stock Up Over 10% Year to Date, Despite Recent Insider Sell-Off
The chocolate maker Hershey’s (HSY) stock price has risen 14% so far this year, outperforming major US indexes by a wide margin. On February 17th, Hershey filed its annual report for 2025 and reported 4.4% sales growth from the previous year, but costs rose significantly due to higher international cocoa prices. These price increases ultimately hurt the company’s 2025 bottom line; however, Hershey provided a positive outlook for 2026, anticipating similar sales growth for the year, and expects to decrease its costs as the price of cocoa has dropped dramatically (Hershey Investor Relations). This development should be reflected in an increase in the company’s earnings for 2026. At the end of last month and the beginning of this month, The Hershey Trust Company (a 10% stakeholder) sold some $12 million in Hershey stock. While this sale temporarily put downward pressure on the stock price, the price has rebounded steadily as investors still seem to believe in Hershey (CNBC).
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Quiz
What is the S&P 500 return for 2026? (Scroll Down for Answer)
- -0.6%
- -3.6%
- -5.2%
- 5%
Answer:
- Although US equity markets have experienced volatility since the war in Iran began six weeks ago, they have recovered, erasing nearly all their losses. Despite all the day-to-day fluctuations and news headlines, the market proves to be resilient. This is why it is essential to maintain long-term focus while investing, because over the long run, equities trend upwards. The MGO portfolios have outperformed the market so far this year due to international exposure, its precious metal holdings, and an energy tilt.
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