DMA of 2026 APRIL 14 TUESDAY AMC.
Pervical has left the island for an emergency. Minimal Market Data will be posted. He should be back in a few days.
— Automation Penguin
The stock market continued its strong start to the week as a sharp retreat in oil prices created a favorable backdrop for equities, while mega-cap stocks provided an additional boost by extending yesterday’s rally. The S&P 500 (+1.2%), Nasdaq Composite (+2.0%), and DJIA (+0.7%) posted gains that were nearly identical to yesterday’s advance, with the major averages now all in positive year-to-date territory.
Lingering optimism around a more permanent ceasefire continues to support the market’s sharp rebound over the past several weeks. President Trump told The New York Post that in-person negotiations between the U.S. and Iran could occur within the next two days.
So far, the temporary ceasefire and the U.S. blockade of Iranian ports are holding. Crude oil futures settled today’s session $7.66 lower (-7.7%) at $91.31 per barrel.
Today’s advance was supported by broad-based strength, with all but the energy (-2.2%), materials (-0.3%), and consumer staples (-0.2%) sectors finishing higher.
Growth-oriented areas led the way, with communication services (+3.2%) and consumer discretionary (+2.5%) sectors posting outsized gains behind continued mega-cap leadership. Meta Platforms (META 662.46, +27.92, +4.40%) was a “magnificent seven” standout, while Amazon (AMZN 248.97, +9.08, +3.79%) traded higher after reports that the company is set to acquire Globalstar (GSAT 79.91, +7.02, +9.63%).
NVIDIA (NVDA 196.46, +7.15, +3.78%) captured a similar gain, and the information technology sector (+1.7%) also finished near the top of today’s leaderboard. Micron (MU 465.66, +39.10, +9.17%) was one of the best-performing S&P 500 names today, and the PHLX Semiconductor Index (+2.0%) steadily charted session highs throughout the session.
All told, the Vanguard Mega Cap Growth ETF finished 2.0% higher, helping the market-weighted S&P 500 (+1.2%) outperform the S&P 500 Equal Weighted Index (+0.4%).
Elsewhere, investors had plenty of earnings and corporate news items of note today. The financials sector (+0.2%) captured a modest gain as the market had mixed reactions to the earnings reports of several major banking names. Citigroup (C 129.65, +3.37, +2.67%) was a standout after topping earnings expectations and issuing upside Net Interest Income guidance, while JPMorgan Chase (JPM 311.12, -2.56, -0.82%) also beat expectations but issued a modest downward revision to its FY2026 net interest income.
Meanwhile, Wells Fargo (WFC 81.73, -4.91, -5.67%) was one of the worst-performing S&P 500 components after narrowly topping EPS estimates but missing on revenues.
Airlines also had an eventful session after Bloomberg reported that United Airlines (UAL 97.17, +1.97, +2.07%) floated the possibility of a merger with American Airlines (AAL 12.13, +0.90, +8.01%).
Outside of the S&P 500, the Russell 2000 (+1.4%) captured another solid gain as the market leans into a risk-on tone, while the S&P Mid Cap 400 (+0.5%) finished with a more modest gain.
After two solid days of broad strength, the major averages are back into positive territory for the year as the market shakes off losses tied to the war in Iran. This morning’s release of the March PPI report added further support to the rebound narrative, with both the headline (0.5%; Briefing.com consensus 1.2%) and core (0.1%; Briefing.com consensus 0.4%) readings coming in cooler-than-expected.
While there has yet to be a conclusive end to the conflict, the market remains confident that disruptions across global oil markets will pressure Iran into a more durable ceasefire agreement sooner rather than later.
Overall, the tone remains constructive as falling oil prices, easing inflation pressures, and renewed mega-cap leadership continue to support the market’s advance. With Q1 earnings season beginning to ramp up, strength in mega-cap names is once again playing an outsized role in driving index performance, leaving the S&P 500 just 0.5% below its all-time high.
U.S. Treasuries had a solid outing on Tuesday, making for a continuation of an upbeat start to the week amid a growing sense that the Iran conflict will conclude soon. The 2-year note yield settled down three basis points to 3.75%, and the 10-year note yield settled down four basis points to 4.26%.
BENCHMARK INDICES YEAR-TO-DATE
- S&P Mid Cap 400: +6.6% YTD +3.4% week-to-date
- Russell 2000: +6.0% YTD +4.0% week-to-date
- DJIA: -0.3% YTD +3.0% week-to-date
- S&P 500: -0.4% YTD +3.6% week-to-date
- Nasdaq Composite: -1.5% YTD +4.7% week-to-date
MARKET INTERNALS
- DOW closed higher at 48536 (+0.66%).
- Nasdaq closed higher at 23639 (+1.96%).
- S&P 500 closed higher at 6967 (+1.18%).
- Action came on lower than average volume for NYSE but higher for Nasdaq (NYSE 1,132 mln vs avg. of 1,428 mln; NASDAQ 9,238 mln vs avg. of 9,182 mln),
- Advancing/declining volume for NYSE (661 mln/451 mln) and Nasdaq (7128 mln/2040 mln).
- Advancers led decliners (NYSE 1840/937; NASDAQ 3362/1489)
- New 52-week highs outpacing new 52-week lows (NYSE 126/9, NASDAQ 285/65).
After-Hours Action
US stock futures held steady on Wednesday after a strong session left the S&P 500 and Nasdaq Composite within a striking distance of recovered levels, effectively wiping out losses from the Iran war. In Tuesday’s regular trading, the S&P 500 and Nasdaq Composite advanced 1.18% and 1.96%, respectively, while the Dow rose 0.66%. Investor sentiment was buoyed by growing optimism that the US and Iran could soon resume negotiations, fueling hopes for a deal to end the conflict and reopen the Strait of Hormuz. Washington and Tehran are reportedly aiming to hold a second round of talks before the current two-week ceasefire expires, following last weekend’s breakdown in discussions. Looking ahead, investors will focus on earnings from major banks such as Bank of America, Morgan Stanley, and PNC Financial, along with results from Dutch chipmaker ASML.
After Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: None
Companies trading higher in after hours in reaction to news: GLOO +19.2% (to acquire Enterprisemarketdesk), GTLB +6.3% (expanded collaboration with Google (GOOG/GOOGL) Cloud), AVGO +3.2% (extends partnership with Meta to support MTIA chips), NKE +1.6% (discloses insider purchases), AIR +1.2% (awarded $305 mln follow-on C-40A contract for U.S. Navy and Marine Corps), RKLB +0.5% (completes acquisition of Mynaric AG), OKLO +0.4% (changes to its Board and management team), HRZN +0.2% (closes merger with Monroe Capital Corporation), MSFT +0.1% (OpenAI rolls out cyber model to select group amid competition with Mythos, according to Bloomberg), PG +0.1% (increases dividend), META +0.1% (AVGO extends partnership with META)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: None
Companies trading lower in after hours in reaction to news: SPWR -8.9% (discloses material errors in prior quarterly results), WULF -7.4% (guidance; stock offering), NOC -0.6% (awarded a $475 mln modification to Missile Defense Agency contract), AA -0.3% (to redeem $219 mln of outstanding notes), CABA -0.3% (first patients dosed with cabaletta bio’s rese-cel manufactured on cellares’ automated cell shuttle platform), APA -0.1% (Q1 financial and operational update)
COMMENTARY
I was reminded by The Samurai that Weeks 16 and 17 are historically the most bullish weeks of the year. This helps explain the pent-up bullishness that was happening last night.
On the home front, my SPX IC has been doing well on one wing, and very, very poorly on the bearish Call wing. I will be monitoring the wing carefully this week.
Stay Hedged – My Penguin Friends
(Excerpts from briefing.com, tradingeconomics.com, financialscents.com, factset.com, finviz.com, marketwatch.com, etrade.com, yahoo.com, tigerbrokers.com, tradingview.com, tradingcentral.com, theedgemalaysia.com, sectorspdrs.com, Investopedia.com, and CNBC.com)