Strong Earnings, Steady Markets

Week Ending May 1, 2026

Last week felt like another reminder that markets do not wait around for perfect headlines.

At the start of the week, investors were still watching the Middle East closely. Peace talks had stalled, oil prices were moving higher, and there was plenty of reason to think markets might stay on edge. But instead of getting stuck there, investors gradually shifted their attention back to something much more familiar: earnings.

And once that happened, the tone changed.

By the second half of the week, it was clear that investors were willing to look through a messy news backdrop as long as company results kept coming in strong. That does not mean the risks disappeared. It just means the market decided, at least for now, that earnings mattered more.

What stood out most to me was this: the market kept climbing, but it did so in a very selective way. Investors were not blindly buying everything. They were rewarding strong results, especially in technology, while still keeping one eye on oil, inflation, and central banks.

Market Overview

Weekly Market Performance (April 27 to May 1, 2026)

• S&P 500: +0.91%
• Nasdaq Composite: +1.12%
• Dow Jones Industrial Average: +0.55%
• MSCI EAFE Index: +0.58%
• S&P/TSX Composite Index: -0.04% 

The week began with some pressure as stalled Middle East peace talks and higher oil prices kept investors cautious. But by midweek, markets found their footing. The Federal Reserve held interest rates steady, which was widely expected, and then attention quickly turned to earnings.

That is where the mood improved.

Several large companies reported results that investors liked, and stocks responded well. By the end of the week, U.S. markets had pushed higher again, with the S&P 500 and Nasdaq finishing April with their strongest monthly gains in five years, while the Dow also joined the rally.

In Canada, things were quieter. The TSX was basically flat for the week, finishing just slightly lower. That may not sound exciting, but it still tells a story. Canadian stocks were pulled in two directions: higher commodity prices and decent domestic growth signals offered support, while energy volatility and rate uncertainty kept the market from really breaking out. rdnewsnow.com

Why the Market Moved Higher Anyway

This was one of those weeks where the market seemed willing to accept a messy backdrop as long as earnings stayed strong.

Oil prices were still elevated. Geopolitical risks were still there. And the Fed was still clearly in no rush to start cutting rates again. Normally, that would be enough to keep investors more defensive.

But earnings changed the conversation.

Once several major companies showed they were still delivering solid results, investors seemed comfortable stepping back into stocks. That was especially true in big technology names, where strong reports helped lift sentiment and gave the broader market another push higher.

In simple terms, the market seemed to be saying: “Yes, the risks are still real, but if profits are holding up, we are not going to sit on the sidelines.”

That is a very different mindset from panic. It is not carefree optimism either. It is more like confidence with conditions attached.

Fed News That Mattered

The Federal Reserve did what most people expected and left interest rates unchanged, keeping the federal funds target range at 3.50% to 3.75%.

But the bigger story was how divided the vote was.

The Fed’s decision came through on an 8–4 vote, which made it the most divided Fed decision in decades. That matters because it tells us policymakers are not all seeing the same path forward. Inflation is still running hotter than they would like, especially with energy prices back in the picture, and that is keeping the policy outlook less settled than investors might prefer.

So while the Fed did not surprise the market with the decision itself, the level of disagreement underneath that decision was worth paying attention to.

To me, the message was pretty simple: rates may be on hold, but certainty is not.

What Canada Was Telling Us

Canada had its own mixed message last week.

The TSX ended the week almost unchanged, but underneath the surface there was still plenty going on. Canadian equities were pressured early by the same things affecting everyone else: higher oil prices, inflation concerns, and cautious central bank messaging. Later in the week, firmer commodity prices and signs of steadier domestic growth helped provide some support.

Friday was a good example of that push and pull. The TSX slipped as energy shares weighed on the market after oil prices moved lower. Air Canada also fell after suspending its guidance because of volatile jet fuel prices, and Magna dropped after reporting a quarterly loss and lowering its outlook.

So even though the TSX did not move much for the full week, it still felt like a market trying to balance opportunity with caution. That is probably the best way to describe Canada right now more broadly too.

Looking Ahead

This week will give investors plenty to work with.

We will get more earnings from some well-known companies across technology, healthcare, consumer, and industrials. We will also get fresh data on trade, job openings, services activity, productivity, jobless claims, and of course the U.S. employment report at the end of the week.

If last week was about investors regaining confidence, this week is about whether that confidence holds up.

That will depend on two things. First, whether earnings continue to justify the market’s optimism. And second, whether the economic data keeps telling us the economy is slowing gently rather than slipping into something worse.

If I had to sum up the setup for this week in one sentence, it would be this: the market has decided to trust earnings again, but now it needs the data to cooperate.

As always, the bigger lesson is not to overreact to one strong week or one strong month. Markets can look very confident right up until something changes. That is why staying diversified and staying grounded still matters more than trying to chase every headline.

This Week: Key Economic Data

Monday, May 4th

• New York Fed President John Williams speaks

Tuesday, May 5th

• Trade Balance
• Job Openings
• New Home Sales (Feb* + March)
• ISM Services
• Federal Reserve speeches: Michelle Bowman, Michael Barr

Wednesday, May 6th

• ADP Employment Report
• Chicago Fed President Austan Goolsbee speaks

Thursday, May 7th

• Weekly Jobless Claims
• Productivity
• Construction Spending (Feb* + March)
• Consumer Credit
• Federal Reserve speeches: Neel Kashkari, John Williams

Friday, May 8th

• Fed governor Lisa Cook speaks
• U.S. Employment Report
• Wholesale Inventories
• Consumer Sentiment
• Fed panel: Austan Goolsbee, Mary Daly, Michelle Bowman, Christopher Waller

*Indicates federal data release delayed by government shutdown

This Week: Companies Reporting Earnings

Monday, May 4th

• Palantir Technologies Inc.
• Vertex Pharmaceuticals Incorporated

Tuesday, May 5th

• Advanced Micro Devices, Inc.
• Arista Networks, Inc.
• Pfizer Inc.

Wednesday, May 6th

• The Walt Disney Company
• Uber Technologies, Inc.
• AppLovin Corporation
• CVS Health Corporation

Thursday, May 7th

• McDonald’s Corporation
• Gilead Sciences, Inc.
• McKesson Corporation

“Be courteous to all, but intimate with few."
– George Washington

Katherine and Sterling each have the same number of pears. How many pears does Katherine need to give Sterling so that Sterling has 10 more pears than she does?

^{_{Last Week's Riddle: I am astonishingly light, but even the strongest person in the world can only hold me for a few minutes. What am I?
Answer: Air.}}

Joanne’s son, Matthew, enjoying the rocks at Westbay in Victoria.

Footnotes and Sources

1. WSJ.com, May 1, 2026

2. Investing.com, May 1, 2026

3. CNBC.com, April 28, 2026

4. WSJ.com, April 29, 2026

5. CNBC.com, April 30, 2026

6. CNBC.com, May 1, 2026

7. WSJ.com, April 29, 2026

8. military.com, January 26, 2025

9. Centers for Disease Control, October 9, 2023

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