Weekly Briefing - Records return as tech earnings impress

Here is the week in economics, explained without the jargon.

A rocky start, a strong finish

The week opened with renewed jitters as tensions around the Strait of Hormuz flared up again on stalled talks, pushing oil prices higher. But sentiment reversed by midweek, and by Friday the S&P 500 closed at a fresh all-time high - even above its January record - as a wave of strong earnings from major technology and semiconductor companies took over the headlines.

A heavy week for corporate earnings

Nearly a hundred companies in the S&P 500 reported quarterly results this week, including several of the very largest technology firms. Combined earnings growth across the index ran at a strong 13% compared with a year earlier - a reminder that even amid geopolitical uncertainty, corporate profits had continued growing at a healthy clip.

Why earnings season can override other news

During a heavy earnings week, company-specific results can temporarily overshadow bigger macroeconomic stories. That is exactly what happened here: a Middle East flare-up that might have dominated headlines on a quieter week instead took a back seat to strong tech results.

What it means for you

A new record high is a notable milestone, but it is worth remembering that a single sector’s strong earnings season - however large that sector is - is not the same as every part of the economy doing equally well.