Weekly Market Update (Apr 19, 2026)

Market Hedwig
4 days ago
2 min read

HIGHLIGHTS

S&P500 hit an all-time high this week. The recent strong revision in earnings provides support to the fundamentals.

Deal: It depends on how the actual US-Iran deal delivers to justify the recent optimism. Oil prices eased and markets expect the Strait of Hormuz to open. Central Banks: As the situation changes, central bankers are now not rushing to have their policy response. Markets are pricing out the aggressive rate hike scenario. It is less likely that there will be ECB hike in April. China: The deteriorating job market and cut in pro-consumption subsidies are likely to drag consumption. The housing market recovery may not sustain.

MARKETS

Nasdaq	24,468.48	+6.84%
S&P 500	7,126.06	+4.54%
Dow	49,447.43	+3.19%
10-Year	4.25%	-7bps
Brent	90.38	-5.06%
DXY	98.23	-0.48%

*Data as of market close. 5-day change ending on Friday.

VIEW FROM THE STREET

Equity

Morgan Stanley: We recommend to use active equity strategy to balance passive index exposure. For active managers, many equities were on sale in software, tech and healthcare. Semiconductors are overbought and we suggest to reduce position.

Standard Chartered: Focus will be on tech earnings next week. We prefer semiconductors, driven by increasing global AI capital expenditure. The sector is more attractive because of the recent valuation de-rating.

Fixed Income

Goldman Sachs: Rates markets are concerned about energy-led inflation, and central banks have to respond with hawkish policies. G7 banks are more likely to hike than cut this year, although they have less pressure to hike immediately now.

UBS: Our view is Fed is still on track on easing while the ECB should stay on hold despite its hawkish tone. Bonds offer attractive risk-reward.

Economy

Barclays: US condition has changed this week. Activity remains resilient amid Iran conflict. The pass-through to core prices has been limited. Focus shift to March retail sales data.

Morgan Stanley: We see risks to inflation, economic growth, Fed policy, geopolitical uncertainty and US political outcomes. We recommend more diversification via broad asset allocation and actively manage portfolio.

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DISCLOSURE

This newsletter is meant for informational purposes only and is not investment advice. Always consult a licensed investment professional before making important investment decisions. Advertising and sponsorship do not influence editorial content or decisions. Market Hedwig is not responsible for the promises made or the quality or reliability of the products or services offered in any advertisement.