S&P 500 Enters the 7000 Era
- Constantine J Kitrinos, CPFA
- 18 hours ago
- 6 min read
The Market Pulse: Earnings, Oil Choke points, and a Conversation with Jared Hudson are all on the itinerary this week. If you’ve been watching the ticker lately, you know we are in the middle of a deeply complex, highly volatile, and fascinating market environment, and we've been there for most of the year. There are no breaks for those of us managing money, and this is truly where we earn our keep. This is the time when most of the inbound phone calls start like this..."I've been calling my advisor, but he's not returning my messages..." An old game of cat and mouse, if you will, and the mouse isn't even playing the game; he's nowhere to be found. Between geopolitical shockwaves and a historic market rally, there is a lot to unpack, and some people just aren't good at unpacking it all.
This week, we’re keeping a close eye on the macro landscape and gearing up for a massive week of corporate earnings. It's report card time, and we're looking forward to some good feedback. But more importantly, we’re sitting down later this week with Jared Hudson, a candidate for the U.S. Senate in Alabama, to get his on-the-ground and geopolitical perspective on where we go from here. He's got an interesting background, and I'm really looking forward to getting his take on the overall health of the economy and where we go from here.
Here is your snapshot of where the market stands and what you need to know before you tune in to the podcast.
The Macro View: The Strait of Hormuz Crisis
You can’t talk about the markets right now without looking at the Middle East. We've been covering this area for some time, and just when you think we might be getting close to the end of this series, another sequel is released. The ongoing conflict between the U.S. and Iran has turned the Strait of Hormuz into a geopolitical flashpoint, creating the largest disruption to the world's energy supply since the 1970s. We're all looking forward to this conflict resolving, but one of the countries that is getting impacted the most is China.
Over the weekend, uncertainty escalated. Our family was just getting into the NHL Stanley Cup finals, and we saw a news alert flash across the screen, and yet again, we were left with another twist in the ongoing saga. While Iran initially announced the strait would open to commercial vessels during a temporary ceasefire in Lebanon, it quickly reversed course, citing a U.S. blockade on Iranian ports. The U.S. Navy is actively intercepting Iranian cargo ships and conducting uncrewed mine-clearing operations to secure water passage. With negotiations currently underway in Islamabad, energy markets are holding their breath, or more like gasping for air. A resolution—or further escalation—will have an immediate, massive impact on global shipping, inflation, and the cost of living stateside. Not good news at all, and we're all left at the mercy of the timing and decision on how this is all resolved.
S&P 500 Enters the 7000 Era
Let's take a look at a market snapshot despite the chaos abroad. There are a bunch of very scary things going on around us, and although we could always say that, the news outlets and coverage look like a downward spiral without recovery. With all things considered, the U.S. market has shown incredible resilience. It's a good thing professional money managers don't trade on emotion! After a sharp pullback in March driven by energy anxieties, we’ve seen a remarkable V-shaped recovery.
Looking back: Earlier this year, growth expectations were resetting, and the S&P 500 took a hit, dropping over 5% in March. Things seem to trade sideways for a while with a path towards a flat or negative year.
Where we are: The bulls took the reins back in April, and we're sitting at just three weeks in, and the story already seems a little different. The S&P 500 officially crossed the historic 7,000 threshold last week, currently sitting up roughly 4.1% year-to-date. The tech sector has done a lot of the heavy lifting, but we're starting to see a broader recovery. That began last year, and we're seeing that trickling into 2026, which is a very positive signal.
Where we're going: This week is the ultimate litmus test. We are heading into a massive slate of corporate earnings. Heavy hitters like Tesla, Intel, UnitedHealth, American Express, and P&G are all reporting. Investors are looking for clues on how companies are handling inflationary pressures, supply chain disruptions, and the rising cost of fuel. There's only so much one can do with the increased costs. You can eat it for so long, but eventually have to cut back on the product or pass on the increased costs to the consumer, and that's where things could start to get worse.
Looking Ahead: Our Sit-Down with Jared Hudson
With everything happening globally and domestically, we need leaders who understand both the tactical and economic realities of our time. That’s why we’re thrilled to have Jared Hudson on the Pennywise Financial Podcast later this week.
A former Navy SEAL, law enforcement officer, and CEO of Covenant Rescue Group, Jared is currently locked in a razor-thin, three-way Republican primary race for Alabama’s open U.S. Senate seat. This has got to be an exciting moment for him and his family as we head into the final portion of his campaign. With the May 19th primary just weeks away, he’s running a grassroots campaign focused on faith, family, and being a "fighter" for his constituents against career politicians.
Here are a few of the hard-hitting questions we have lined up for him:
The Geopolitical Threat: As a former Navy SEAL, who better to ask than Jared about the military logistics and global chokepoints? What is your read on the U.S. naval blockade in the Strait of Hormuz, and how should the U.S. permanently secure global energy lanes without getting dragged into an endless conflict?
The Cost of Living: You’ve made lowering the cost of living a core pillar of your campaign. With global energy shocks threatening to drive up inflation again, how do you plan to "put Alabama first" and shield everyday Americans from these soaring costs?
The State of the Race: Recent polling shows a dead heat between you, Rep. Barry Moore, and Attorney General Steve Marshall, with a very small margin of undecided voters left. How do you close the gap and secure the nomination in this final, critical month?
Fiscal Sanity in Washington: The U.S. market is hitting record highs, but national debt and government spending remain massive concerns. If elected, what is your practical approach to reining in the budget without stifling economic growth?
We want to hear from you, too. What do you want us to ask Jared? Drop your questions in the comments below, and make sure you’re subscribed to the Pennywise Financial Podcast so you don't miss this episode.
Stay sharp, stay invested, and we'll see you on the podcast, and yes, the S&P indeed Enters the 7000 Era!
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