Stocks Extend Rally as Oil Plunges and Mega-Caps Power Market Higher

The market continued its strong momentum, building on the prior session’s gains as falling oil prices and renewed mega-cap leadership fueled another broad advance. The S&P 500 (+1.2%), Nasdaq Composite (+2.0%), and Dow Jones Industrial Average (+0.7%) all moved higher, pushing the major averages firmly into positive territory for the year.

Optimism surrounding a more durable ceasefire between the U.S. and Iran remains a key tailwind. President Trump indicated to The New York Post that in-person negotiations could take place within days, reinforcing expectations for a potential resolution. For now, the temporary ceasefire and U.S. blockade of Iranian ports appear to be holding.

The most immediate catalyst, however, came from energy markets. Crude oil futures dropped sharply, settling $7.66 lower (-7.7%) at $91.31 per barrel. The move provided a meaningful boost to equities by easing inflation concerns and improving the macro backdrop.

Gains were widespread, with all but three sectors finishing higher. The communication services sector (+3.2%) and consumer discretionary sector (+2.5%) led the advance, driven by continued strength in mega-cap names. Meta Platforms stood out among the “Magnificent Seven,” while Amazon advanced on reports it is exploring an acquisition of Globalstar.

Technology remained a central pillar of the rally. NVIDIA posted solid gains, while Micron Technology surged, helping lift the PHLX Semiconductor Index by 2.0%. The broader information technology sector (+1.7%) finished near the top of the leaderboard, reflecting sustained momentum in AI-related names.

Mega-cap dominance was evident in index performance. The Vanguard Mega Cap Growth ETF rose 2.0%, allowing the market-weighted S&P 500 to significantly outperform its equal-weighted counterpart.

Financials were more subdued. The financials sector (+0.2%) edged higher amid mixed earnings reactions. Citigroup gained after delivering a strong report and upbeat guidance, while JPMorgan Chase dipped despite beating expectations. Wells Fargo lagged after a revenue miss.

Airline stocks also drew attention following a Bloomberg report that United Airlines is exploring a potential merger with American Airlines, sending shares of the latter sharply higher.

Broader participation remained constructive. The Russell 2000 (+1.4%) posted another solid gain, while the S&P MidCap 400 (+0.5%) also advanced, though to a lesser extent.

On the macro front, cooler-than-expected inflation data added to the bullish tone. March PPI came in below expectations on both the headline and core measures, reinforcing the view that inflation pressures may be easing despite recent energy volatility.

Overall, the market’s tone remains firmly constructive. Falling oil prices, improving inflation dynamics, and strong mega-cap leadership have driven a rapid recovery from recent geopolitical-driven losses. With the S&P 500 now within roughly 0.5% of its all-time high, attention turns to whether upcoming earnings can sustain the momentum and push the market into record territory.

Our FTinvest 11 model portfolio gained 0.31% to close at 993.31, continuing its steady upward movement and approaching the 1,000 level once again. The portfolio has now posted consecutive gains, reinforcing its recovery trend, though it remains below the all-time high of 1,039.51.

Based on the start-of-year level of 928.18, FTinvest 11 is now up approximately +7.02% year-to-date, reflecting strong performance through the first quarter and into April. The consistent advance highlights the portfolio’s resilience and the effectiveness of its disciplined, value-driven strategy in navigating evolving market conditions.