The Volatility index was high again this week as markets responded to economic data and the daily news cycle. How will markets navigate the congestion through the rest of the month?
Monday
S&P 500 1.15% | NASDAQ 1.38%
Trading rebounded following another weak performing stretch last week. President Trump announced that both the U.S. and Iran were open to a diplomatic resolution in the region. A buying frenzy ensued after news broke and energy prices fell lower.
Tuesday
S&P 500 0.37% | NASDAQ 0.84%
Conflicting reports out of Iran indicated that peace talks were not on the table. Software stocks were hit hardest while energy and materials reaped the reward of rising commodity prices. Preliminary GDP data is showing signs of slowing while data from global services inched towards contraction.
Wednesday
S&P 500 0.54% | NASDAQ 0.77%
Markets responded nicely to corporate earnings announcements even with rising oil prices. Conflicts in the Middle East and stubborn inflation have ruled out a rate cut for the remainder of 2026. Mortgage rates have increased almost 40 basis points since early March when rates fell briefly below 6% with recent uncertainty.
Thursday
S&P 500 1.74% | NASDAQ 2.38%
Equities had very little appetite for risk-on asset classes on Thursday. A major regulatory decision by a jury against Meta Platforms (META) and Alphabet (GOOGL) sent shockwaves through the communication sector. Crude oil continued its climb higher as the Iranian conflict leaves markets unsettled, for now.
Friday
S&P 500 1.67% | NASDAQ 2.15%
Much like last Friday, markets wanted to de-risk ahead of the weekend. The Nasdaq officially entered correction territory and the week ended on a 5th consecutive weekly losing streak. Consumer sentiment data was also released which came in lower than expected.
Conclusion
S&P 500 2.12% | NASDAQ 3.23%
Another week of turbulence after heightened tensions in Iran. Energy markets remain elevated while other news in Software stocks weighed heavily on the growth sector. There remains little in the way of a timeline for a resolution in Iran, so markets are navigating choppy waters. The CBOE Volatility Index (VIX) closed the week at 31 on Friday with a brief fall to 25 on Wednesday. Markets continue to de-risk during the ongoing conflict, but cooler heads often prevail if the U.S. economy remains stable. When market corrections occur, the question moving forward is whether they have fallen as far as they can go.
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