Stocks opened this week after negotiations between the US and Iran over the weekend. The see-saw of headlines continued. Commentary was leaning more and more towards resolution though, pushing equities to their ATH on Wednesday and then again Thursday. A ceasefire between Israel and Lebanon was announced, then more pieces fell into place: Axios reported that the US was considering releasing $20 billion of Iran’s frozen funds in return for Iran giving up its enriched nuclear stockpile. Then, right before Friday’s open, Iran’s Foreign Minister posted that, in line with the ceasefire in Lebanon, “the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire…”

Equities ripped. 7000 gave way to 7100 as oil fell out of bed, down ~10%. Yields followed crude lower. It was also an options expiration and all of those expiring positions were adjusted and reloaded as these updates hit the tape. As the Closing Bell rang, the S&P 500 added 5% this week, with mega cap strength lifting the market-weight index above the equal-weight. Growth beat Value across market caps by 400-600bps.

Tech led with software flying higher. The IGV ETF posted its best week since 2000 and doubled-up semis. Consumer Discretionary outperformed the Defensive Staples by 700bp. Geopolitics will remain a driving factor for markets as the Iran situation continues to evolve. Q1 earnings, however, is bringing a fundamental perspective to what has been a very macro focused market. So far the major banks have reported solid results, haven’t waived any red flags on consumer health or credit issues and are optimistic on the economy.

Next week the Q1 earnings train barrels ahead, with a broader set of companies reporting. Flash PMIs and Retail sales will headline an otherwise light economic calendar. The Senate Banking Committee has scheduled a confirmation hearing for Kevin Warsh on April 21. You can think about all this as you sit back and watch the NBA and NHL playoffs. Go Knicks!