The Markets (as of market close April 2, 2026)
Stocks rebounded last week with a strong, tech-led rally amidst geopolitical tensions in the Middle East and shifting fiscal policy expectations. Major indexes posted solid gains following a better-than-expected jobs report and renewed strength in AI and technology stocks. The market was closed on Good Friday, shortening the trading week. Information technology and communication services led gains, while energy lagged despite elevated oil prices. Crude oil surged above $110 per barrel, while gold continued climbing as speculators and traders sought protection against geopolitical risk and potential stagflation. Treasury yields declined modestly, and the U.S. dollar was little changed.
Last Week’s Economic News
- Employment increased by 178,000 in March, exceeding expectations, while the unemployment rate dipped to 4.3%.
- Average hourly earnings rose in March, with wages up 3.5% year-over-year.
- Job openings declined in February, while hiring and separations both decreased.
- Retail sales increased slightly in February and 3.7% year-over-year, indicating continued consumer resilience.
- The trade deficit widened to $57.3 billion in February, as both exports and imports increased.
- Manufacturing activity improved in March, supported by stronger domestic demand despite tariff-related pressures.
- The services sector contracted, marking the first decline in activity since early 2023 amid rising costs and a change in confidence levels.
- Weekly jobless claims fell to 202,000, suggesting continued labor market stability.
- Gasoline prices rose, reflecting persistently high energy prices.
Eye on the Week Ahead
Stock traders will focus on several key reports this week, including the final estimate of fourth-quarter GDP, along with updates on personal income and spending through the PCE price index and the latest Consumer Price Index data. These reports will be closely watched for further signals on inflation trends and economic momentum.
Have a nice week!
Sincerely,
Robert G. Carpenter