Weekly Market Recap — Week of April 7, 2026

A volatile week for markets as CPI came in hotter than expected (3.2% vs 3.0% consensus), pushing back rate cut expectations and causing a sharp intraday selloff. However, the market recovered by Friday, suggesting the underlying bid remains strong. Key themes: inflation stickiness, dollar strength, and the resilience of the AI trade.

Weekly Market Recap — Week of April 7, 2026

Market Summary

A volatile week. The S&P 500 finished flat (+0.2%) after a sharp mid-week selloff following the CPI print. The Nasdaq Composite fell 0.5% while the Dow Jones gained 0.4%.

CPI Report Analysis

March CPI came in at 3.2% YoY vs. 3.0% consensus — the third consecutive month of above-consensus inflation. Core CPI (ex-food and energy) was 3.8% YoY.

Key drivers of the upside surprise:

Shelter inflation remains sticky at +5.6% YoY
Services inflation (ex-shelter) at +4.1% — the Fed's preferred measure
Energy prices turned higher (+2.3% MoM) as oil recovered

Market reaction: 10-year Treasury yield spiked to 4.65% (highest since November). Fed funds futures pushed back the first rate cut to September 2026.

Sector Performance

Technology: -1.2% (rate-sensitive growth stocks sold off)
Financials: +2.1% (higher rates benefit net interest margins)
Real Estate: -2.8% (most rate-sensitive sector)
Energy: +1.8% (oil recovery)

Technical Outlook

The S&P 500 tested and held the 5,650 support level (50-day MA). The recovery into Friday's close is constructive. I'm watching the 5,800 level as the key resistance — a break above would signal the bull trend is intact.

This analysis is for informational purposes only and does not constitute financial advice.