The S&P 500 index rose 3.6% last week as technology stocks surged and optimism grew that the Strait of Hormuz could reopen following progress toward a deal between Iran and Oman.
The index is now up 3.4% quarter-to-date and 13% this year.
The technology sector led the broad market rally, climbing 7.2%. Palantir Technologies (PLTR) jumped 40% after Q2 sales and adjusted earnings surpassed estimates and the company raised its full-year 2026 sales outlook. Nvidia (NVDA) also climbed 12% on the week.
Investors also grew more optimistic about developments surrounding the Strait of Hormuz, a key route for global oil shipments. An Iranian official said a framework for reopening the strait had been agreed upon with Oman, with a final decision still pending, according to Al Jazeera, citing Iranian state media.
The materials sector had the second-largest gain of the week, rising 5.6%, followed by a 3% increase in industrials. Most other sectors also finished higher.
On the downside, energy fell 3.3%, followed by a 1.7% decline in utilities and a 0.1% dip in real estate.
This week, investors will be watching several key economic reports, including consumer and wholesale price inflation, retail sales, consumer sentiment and existing home sales.
Get instructions on how to enable our Flash News Briefing skill to your Amazon devices:
Bautis Financial LLC is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
Episode 304 – What Never Split the Difference Teaches Us About Negotiation