In the United States, equity markets began to recover last week following a month of intense volatility. Hopes that the conflict between the US and Iran was nearing resolution supported markets, with the S&P 500 surpassing the significant 7,000-point milestone. The index had tested this level several times earlier in the year and was approaching it prior to the outbreak of the conflict, before declining to approximately 6,300 in late March. Over the past two weeks, the index has rebounded by around 650 points, representing a notable rally. Overall, it was a positive week, with the S&P 500 and the NASDAQ Composite closing 4.87% and 7.07% higher, respectively.
Earnings season also gathered pace, with major financial institutions leading the initial releases. JPMorgan Chase, Goldman Sachs and Citigroup all reported first-quarter results. As anticipated, it was another strong quarter for the sector, with trading divisions generating significant revenues as clients sought to capitalise on lower market valuations created by recent volatility. JPMorgan, the world’s largest bank by assets, reported net income of $16.5bn, its second-best quarter on record, representing a 13% year-on-year increase. Goldman Sachs posted net income of $5.6bn, up 19%, while Citigroup reported $5.8bn, an increase of 42% year-on-year. Citigroup’s revenues reached a decade high as it progresses through the final stages of a company-wide turnaround led by CEO Jane Fraser. Both JPMorgan and Citigroup reported near-record trading revenues, particularly in fixed income and equities, as volatile market conditions created opportunities for trading desks. From a macroeconomic perspective, JP Morgan CEO Jamie Dimon stated that the US economy remains resilient, supported by strong consumer spending. He cited continued growth in AI-related capital expenditure, increased fiscal stimulus, and deregulation as key factors underpinning the positive outlook.
In corporate developments, Amazon agreed to acquire Globestar, a satellite communications company, in a deal valued at approximately $11.57bn. The rationale behind the acquisition is to compete more directly with Starlink, owned by Elon Musk, which currently dominates the satellite communications market. Amazon presently operates around 200 satellites through its Project Kuiper initiative but plans to expand significantly, targeting the launch of 3,200 low Earth orbit satellites by 2029. However, this remains well below Starlink’s existing network of over 10,000 satellites and approximately nine million users.
In the technology sector, OpenAI released a cybersecurity-focused AI model to select enterprise customers, following a similar move by Anthropic. The model is designed to identify vulnerabilities in software systems and alert security professionals before they can be exploited. However, concerns remain regarding potential misuse if such tools fall into the wrong hands. As a result, both companies have implemented strict vetting processes to control access. According to Anthropic, its cybersecurity model, Mythos, has already identified thousands of vulnerabilities across platforms and web browsers, including some that had remained undetected for decades.
In Europe, equity markets also advanced last week as the ceasefire in the Middle East appeared to progress towards more substantive negotiations. However, gains were more muted than in the US, with corporate earnings influencing overall performance. Shares in the luxury goods sector declined midweek after Hermès reported that sales had been adversely affected by the conflict, sending its shares down 13% and weighing on the broader market. Nevertheless, for the week, the Euro Stoxx 50 and STOXX Europe 600 closed higher, up 3.09% and 2.43%, respectively.
In earnings, ASML reported first-quarter results that exceeded expectations for both revenue and profit. The company recorded €8.5bn in net sales and €2.8bn in net income, while raising its 2026 revenue guidance to between €36bn and €40bn, above previous estimates of €34bn to €39bn. Despite this, shares fell by more than 6% midweek due to tighter export controls on the sale of its EUV machines to China, which are expected to weigh on future sales.
In corporate developments, Adidas confirmed it will not renew its long-standing partnership with the UEFA Champions League, with Nike set to take over as the official match ball supplier. This marks the end of a 25-year association, during which the iconic “starball” design became synonymous with the competition. Nike is reportedly in discussions to supply match balls for all UEFA men’s competitions from 2027 to 2031. Both companies have faced similar challenges in recent years, as lower-cost Asian manufacturers have gained market share and consumers have shifted towards more affordable brands.
In the United Kingdom, the FTSE 100 underperformed its global peers, closing slightly higher for the week. The index was weighed down by its heavy exposure to energy stocks and weaker corporate performance. Shares in Shell and BP declined as easing geopolitical tensions between the US and Iran put downward pressure on oil prices. While there were pockets of strength, most notably from Antofagasta, whose shares rose 2.5% following a positive quarterly update, UK equities remained subdued overall as investors awaited further clarity on geopolitical developments. For the week, the FTSE 100 closed 1.06% higher.
