Updated: 13-April-2026

Last Week on Wall Street

Hope won out over fear last week as investors set their sights on a Middle East ceasefire holding and optimistic prospects for the Strait of Hormuz reopening. The Standard & Poor’s 500 Index rose 3.56 percent, while the Nasdaq Composite Index picked up 4.68 percent. The Dow Jones Industrial Average advanced 3.04 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, increased 4.52 percent.^1,2

Markets then pushed higher on Wednesday following White House comments that the U.S. was suspending attacks for two weeks while it considered a ceasefire proposal. All three major averages gained more than 2.5 percent on Wednesday alone as tech stocks led the rally.⁵

The relief rally continued through Thursday as the Dow Industrials turned positive for the year. On Friday, the markets shrugged off news that headline inflation rose to a two-year high in March. Stocks also looked past a disappointing consumer sentiment reading.^6,7

^{This Morning on Wall Street}

(Monday market open)  Weekend talks made no progress on ending the war or reopening the Strait of Hormuz, pushing oil sharply higher and setting a cautious tone for markets as Goldman Sachs kicks off earnings season. President Donald Trump announced a U.S. blockade of the strait, initially sending stocks lower, though markets stabilized after clarification that it applies only to Iranian ports. Still, crude has surged nearly 8% back above $100 per barrel.

"There's growing concern, both in Washington and among investors, that no matter how quickly the war ends, the economic fallout is likely to last for months," said Michael Townsend, managing director of legislative and regulatory affairs at Charles Schwab.

What's the VIX?

If you’ve heard that the CBOE Volatility Index (VIX) is rising, it can sound alarming. It’s often called the market’s “fear gauge," but for everyday investors, it’s more helpful to understand two simple things:

1. What the VIX actually measures
2. How common volatility really is

The VIX measures how much investors expect the stock market to move over the next 30 days.

• Low VIX (below 15) → Calm, stable markets
• Moderate VIX (15–25) → Normal ups and downs
• High VIX (25–35+) → Uncertainty or stress
• Very high (40+) → Panic (rare)

Think of it like a weather forecast for markets: It doesn’t tell you direction, it does attempt to tell you how stormy things might be.

How often does volatility actually happen?

Market volatility is normal and frequent.

• The stock market drops 10% almost every year
• A 5% pullback happens multiple times per year
• Bigger drops (~20% bear markets) happen every few years

And spikes in the VIX?

• The VIX typically rises above 20 several times a year
• Spikes above 30 happen during major news events
• Extreme spikes (40–80) are rare, but have happened multiple times in modern history

Volatility isn’t unusual. It’s part of how markets function. 

Why volatility spikes

Major events, especially involving energy and geopolitics, often trigger VIX spikes. Here are just a few historic examples.

• Gulf War: Oil spike + market drop, then quick recovery
• Global Financial Crisis: VIX surged above 80 (extreme fear)
• Russian invasion of Ukraine: Energy shock + VIX jump into the 30s

Here's the general cycle:

Geopolitical Shock → volatility rises → markets adjust → recovery follows

What should a novice investor do?

When the VIX rises, the most important thing is to remain calm. A VIX around 20–25 signals normal uncertainty, not immediate crisis.

• Stay invested. Missing just a few strong recovery days can significantly hurt your long-term returns.
• Stick to a plan. If you don't have a plan, you're overdue. You need one. Diversified, long-term investing beats reacting to headlines every time.
• Expect bumps along the way. Volatility is the “price of admission” for investing in stocks. It's frequent. You need to anticipate that this is a part of being an investor and not scramble when you read the morning news.
• The VIX doesn’t mean something is wrong. It means markets are reacting, which happens regularly. It's like having your house appraised every minute of every day. The reality is: the value of your property matters most when you want to buy, sell, or refinance.
• Market volatility can feel like an opportunity, but chasing the perfect entry point is a losing game. While spikes in the VIX may create pockets of value, the real advantage comes from staying invested, not trying to outguess the market’s next move.
• History shows it clearly: time in the market consistently beats attempts to time the market. Yet many retail investors fall into the same trap, jumping in and out at precisely the wrong moments, turning short-term emotion into long-term underperformance.
• The edge isn’t in predicting the bottom. It’s in having the discipline to stay the course.

What to Expect This Week: Key Economic Data

This week is really about three overlapping drivers:

1. Inflation (PPI is the big one): Markets are watching if rising oil prices are feeding inflation.
2. Federal Reserve signals: Investors are trying to gauge: rate cuts vs. higher-for-longer.
3. Earnings season (arguably the MOST important): Major banks reporting this week. Earnings could override economic data and war headlines.

Timeline of events

Monday: Existing Home Sales. Fed governor Stephen Miran speaks.

Tuesday:  NFIB Small Business Optimism Index. Producer Price Index (PPI). Fed governor Michael Barr speaks. Fed Presidents Susan Collins (Boston), Tom Barkin (Richmond), and Anna Paulson (Philadelphia) speak together on a panel about the rural economy.

Wednesday: Import Prices. Home Builder Confidence. Fed Official speeches: Michael Barr and Fed Vice Chair for Supervision Michelle Bowman speak. Fed Beige Book.

Thursday: Weekly Jobless Claims. Industrial Production. Capacity Utilization. Fed Official speeches: New York Fed President John Williams and Stephen Miran.

Friday: Housing Starts. Building Permits. Fed Official speeches: Tom Barkin and Christopher Waller.

Companies Reporting Earnings

Monday: Goldman Sachs (GS), Fastenal (FAST)

Tuesday: JPMorgan Chase (JPM), Johnson & Johnson (JNJ), Wells Fargo (WFC), Citigroup (C), BlackRock (BLK)

Wednesday: Bank of America (BAC), Morgan Stanley (MS), Progressive (PGR), PNC Financial Services (PNC), Kinder Morgan (KMI)

Thursday: Netflix (NFLX), PepsiCo (PEP), Abbott Laboratories (ABT), Charles Schwab (SCHW), Prologis (PLD), Bank of New York Mellon (BK), U.S. Bancorp (USB), Marsh (MRSH), The Travelers Companies (TRV)

Friday: Truist Financial (TFC)

Source: Zacks, April 10, 2026. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule their earnings reports without notice.