Despite all the back-and-forth headlines and escalating maritime tensions there has been a significant compression of volatility at the index level. We’re heading into the weekend on a positive as there are reports both Iran and the US will have representatives in Pakistan this weekend. The S&P 500 traded in a ~1.5% range during the week, ending modestly higher with technology doing most of the heavy lifting. The NYSE 100 index was up >2% but the Semiconductor index, which enters the weekend on an18 session win streak, was the star of the show up >10% for the week and 50% YTD.

Outside of the swirling Iran headlines earnings was the other big story this week and is impacting sector level performance. A little over a quarter of companies in the S&P 500 have now reported and the numbers have been strong. Over 80% of companies have beaten both EPS and revenue estimates. Companies have been reporting earnings that are on average 12.3% above estimates, bringing the blended growth rate for the quarter to ~15% y/y.

Moving to next week, it's a Lollapolooza of market events. Monetary policy will headline the first main stage. Wednesday could be Jerome Powell's last rate decision as Fed chair. Japan, the BOE and ECB will also hold rate decisions. Tech earnings will headline the second main stage, with all hyperscalers ex-ORCL reporting, on the same night. Q1 GDP will be a key data release. Hopefully the Knicks will figure it out and move on to the next round. If you're heading to to the Savannah Bananas game at Yankee Stadium on Sunday, let us know. If not, have a great weekend anyway!