US stocks are shrugging off odds of rate hikes

S&P 500 index keeps moving higher despite a dramatically more hawkish market.

Stocks & rates higher on the week amid war worries

S. stock indexes closed the week higher, with the Dow Jones advancing to an all-time high and the S&P 500 Index rising for the eighth consecutive week, its longest winning streak since 2023.

Small-cap and value stocks outperformed large-cap and growth shares. 

After a volatile start to the week, sentiment improved as enthusiasm around artificial intelligence (AI) stocks—supported in part by chipmaker NVIDIA’s stronger-than-expected earnings results—helped offset uncertainty surrounding the Middle East conflict. 

S. and Iran remained fluid and sometimes conflicting, investors generally appeared to see negotiations as more likely than escalating military action. 

On the macro side, US PMI data show modest growth and surging price pressures while US Consumer sentiment hits record low. 

S. S. was in the “final stages” of talks with Iran. 

In local currency terms, the European Central Bank lowered its growth forecast for 2026.

14% as softer inflation data weigh on the yen. 

The dollar was volatile as bitcoin dumped to $75k. 

Gold was modestly lower.