Weekly Market Guide

The market is being driven by exceptionally strong Q1 earnings growth of 26% y/y, though rising inflation and bond yields near 4.6% suggest a near-term consolidation may be imminent.

Key Takeaways

• 1.Blockbuster Q1 earnings season with growth at ~26% y/y is the primary driver of current market strength, significantly exceeding initial consensus estimates.
• 2.Semiconductors and Tech have surged significantly (+69% for semis in 29 days), leading to short-term overextension and a risk of consolidation.
• 3.Inflation is ticking higher (April Core CPI at 2.8% y/y), which is putting upward pressure on bond yields and acting as a headwind for equities.

Table of Contents

• Weekly Market Guide
• Inflation Concerns Ticking Higher
• Bond Yields and Valuation
• Earnings Outweighing The Concerns
• Semiconductors
• Market Concentration

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