Finance

Aggregate first-quarter earnings growth for the S&P 500 is now estimated at 27.8% year-over-year, the highest rate since 2021. Investors have largely looked past the ongoing conflict with Iran and the closure of the Strait of Hormuz, focusing instead on the fundamental strength of the AI-driven tech sector and resilient consumer demand.

U.S. 10-year Treasury yields finished the week higher, reaching approximately 4.39% as markets adjusted to persistent inflationary pressures. The rise in yields reflects a shifting sentiment among traders who have moved away from expecting imminent rate cuts, instead pricing in a higher-for-longer interest rate environment through 2026.

Crude oil prices eased toward the start of May, helping to stabilize global markets even as major supply routes like the Strait of Hormuz remained obstructed. While supermajors like Exxon Mobil and Chevron reported strong earnings, their revenues were impacted by stymied production and delivery delays caused by the naval blockade.