The Week in Short

Markets finished the week higher as investors digested strong earnings reports from major technology companies, the Federal Reserve’s latest policy decision, and renewed uncertainty around global oil supply.

For the week, the S&P 500 gained 0.9%, the Nasdaq Composite rose 1.1%, and the Dow Jones increased 0.6%.

Federal Reserve

The Federal Reserve left its policy rate unchanged at 3.50% to 3.75% for the third consecutive meeting, citing uncertainty around the economic outlook.

The decision included four dissenting votes, the highest number of dissents at a Fed meeting since 1992. The split vote highlighted differing views within the committee on the appropriate path for monetary policy.

The meeting also marked Jerome Powell’s final week as Fed Chair. His departure comes as the central bank continues to assess inflation, growth, credit conditions, and the labour market.

Earnings

Earnings were a major focus during the week, particularly across large-cap technology.

Apple reported quarterly results above Wall Street expectations, supported by continued demand for the iPhone 17 line. Amazon, Google, and Microsoft also reported results that showed continued growth across their cloud businesses, with investors focused on whether AI-related spending is translating into revenue.

The reports helped support market performance during the week, particularly across technology-linked equities.

Equity Markets

US equity markets moved higher over the week. The S&P 500 gained 0.9%, the Nasdaq Composite rose 1.1%, and the Dow Jones increased 0.6%.

The Nasdaq outperformed the other major US indices, reflecting strength in technology shares following earnings from several large companies.

Oil and Commodities

Oil markets were in focus after the United Arab Emirates announced that it would exit OPEC and OPEC+ following a review of its energy policy.

The UAE has reportedly expanded production capacity to around 5 million barrels per day and is seeking greater flexibility in managing oil output outside OPEC production quotas.

The announcement added uncertainty to the outlook for global oil supply, with investors watching for further details on UAE production plans and responses from other OPEC members.

Looking to the Week Ahead

The coming week is expected to be busy, with attention on the April jobs report, corporate earnings, and several macro and company-specific events.

The April labour market report is due on Friday, with economists expecting around 49,000 job additions and the unemployment rate to remain at 4.3%. Earlier in the week, the Federal Reserve’s Senior Loan Officer Opinion Survey will provide an update on credit conditions, while Fed commentary may also influence market expectations.

Earnings reports are scheduled across several sectors. Palantir and Tyson Foods report on Monday, followed by AMD, Pfizer, Rivian, and Shopify on Tuesday. Disney, Marriott, Uber, Arm, Instacart, and DoorDash report on Wednesday, while Coinbase, Airbnb, and Gilead Sciences report on Thursday.

Corporate events will also be watched, including Citigroup’s Investor Day, IBM’s Think conference, and Anthropic’s developer event. OPEC production data will remain in focus following the UAE announcement.

Watch Points

Investors will monitor the April jobs report, credit conditions, Fed commentary, and the next round of earnings reports. AI-related demand will remain a focus through updates from AMD, Arm, IBM, and Anthropic, while oil markets will continue to assess the impact of the UAE’s planned exit from OPEC and OPEC+.

Craig Evans