Investment Week at a Glance
Stocks finished higher for the week. The Dow Jones Industrial Average rose 3.6%, the S&P 500 was up 4.7%, and the NASDAQ rose 7.1%. Foreign stocks (MSCI EAFE) were up for the week, rising 3.0%. Bond prices were up for the week, with the 10-year U.S. Treasury ending the week at 4.25%. (Data source: Wall Street Journal)
Markets Rebound to Record Highs
Markets have continued to rebound from their lows and are back to all-time highs as the risk in the Middle East has been all but priced out of the market. This run we have seen in the past 11 days is one of the strongest rallies in the past 50 years. This is a prime example of investors being rewarded for sticking to their goals and riding out the ups and downs of the market. Oil prices have fallen from their highs, although still elevated, and markets have seemed to take $150 oil off the table. If we see peace talks fall apart and an escalation in the war, expect markets to see volatility once again. If we are able to move past this, markets will once again focus on the Fed, corporate earnings, and the overall economy.
S&P 500 Earnings Growth
Despite all the headlines and noise, there is only one thing that drives markets in the long term, and that is corporate earnings. Earnings have been strong recently and are projected to continue for the foreseeable future. Expectations are for double-digit growth for 2026, and estimates are as high as 18% year-over-year, with revenue growth of 9% for the year. If companies can deliver and even outperform on these expectations, markets could see a move higher and make new highs. If companies begin to disappoint, expect markets to be a little more uncertain throughout the year.
Amazon Stock Up Over 8% Year to Date, Leading the Mag 7 in Performance.
The e-commerce giant tech company Amazon (AMZN) is off to a solid start this year, with its stock price up over 8%. After a sluggish performance in 2025 relative to the broader market and its peers, Amazon has returned more this year than any other Mag 7 stock (NVIDIA, Apple, Microsoft, Google, Meta, & Tesla). On February 6th, Amazon released its 2025 annual report and reported 31% earnings growth for the year (Amazon Investor Relations). Despite the threat that tariffs potentially posed to the business and shaky consumer sentiment, the company performed extraordinarily well last year. On April 29th, the company is set to release its earnings for the first quarter of 2026, which should provide some valuable insight into how Amazon will perform the remainder of the year and how it has been affected so far by the conflict in the Middle East. (CNBC)
If you have any questions regarding your account with MGO, please call us at (216) 771-4242 or send an email to us at ask@mgo-inc.com
Quiz
What have international equity markets returned so far in 2026? (Scroll Down for Answer)
- 1%
- 3%
- 5%
- 8%
Answer:
4. 8%, international markets have continued to outperform domestic markets for the year despite the tensions across the globe.
Investing involves risk, including the possible loss of principal. The information contained herein has been prepared solely for informational purposes. Nothing contained herein should be construed as a recommendation to either buy or sell any security or economic sector, or implement any strategy discussed. Please consult with your financial advisor, accountant, and/or attorney before acting on this information. MGO-Inc is a DBA of OneSeven. OneSeven is an investment advisor registered with the U.S. Securities and Exchange Commission (SEC). Registration with the SEC does not imply a certain level of skill or training. Investment Products are Not FDIC Insured, Offer No Bank Guarantee, and May Lose Value.
