Market Pulse — April 17, 2026

Index Recap

A geopolitical relief rally drove every major US index higher on Friday. The S&P 500 closed up 1.2% at a record high north of 7,100. The Dow Jones Industrial Average added roughly 850 points, or 1.8%. The Nasdaq Composite gained 1.5%, extending its win streak to 13 sessions — the longest run since 1992. Small caps led the tape with the Russell 2000 up 2.1% as risk appetite broadened beyond mega-cap tech.

The CBOE Volatility Index (VIX) closed at 17.48, down 2.6% on the day and now off 41% from its March peak.

Sector Tape

The catalyst was Tehran's statement that the Strait of Hormuz was "completely open," reversing weeks of shipping-route anxiety. WTI crude fell 11.5% to $83.78 and Brent dropped 10.8% to $88.67, gutting the energy complex.

• Winner: Consumer Discretionary (XLY) led on lower input costs and broad risk-on flows, with technology (XLK) close behind.
• Loser: Energy (XLE) sold off hard alongside crude. Utilities (XLU) was the only other sector in the red as defensive positioning unwound.

Single-Stock Movers

• XOM, CVX, and BP all finished sharply lower as the oil tape collapsed. Exxon and Chevron weighed heavily on the Dow despite the index's overall gain.
• SCHW reported Q1 EPS of $1.35 on $6.39B revenue — a 33% earnings jump year-over-year — and rallied on stronger client asset growth and net interest margin expansion.
• ALLY posted Q1 EPS of $0.95 against $2.15B in revenue, with auto-loan originations re-accelerating. Shares moved roughly in line with the implied 5.5% options-priced reaction.
• VZ gained 3.9% and CSCO added 3.3% on continued enterprise AI-hardware demand commentary.

Macro

Treasuries traded in a narrow range despite the equity rip. The 10-year yield settled at 4.26%, the 2-year at 3.71%, and the 30-year at 4.88%. The curve shape was little-changed as the bid for duration faded with the geopolitical premium.

No tier-one US data hit the tape Friday and there was no scheduled Fed speak. The market is now firmly focused on the May FOMC meeting and the question of who succeeds Jay Powell, whose term expires next month.

What to Watch Monday

Bank earnings continue with regional names reporting before the open, and the April Empire State Manufacturing Survey lands at 8:30 a.m. ET — the first read on whether the oil-shock reversal is showing up in factory sentiment.