What’s News in Markets: New Record Highs, Luxury Woes, and AI Makeovers

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Imani Moise (0:33)

Hey, listeners. It's Saturday, April 18th. I'm Imani Moise for The Wall Street Journal. This is What's News in Markets, our look at the biggest stock moves of the week and the news that drove them. Let's dive in. Investors began to look past the war in Iran this week, and major US indexes marched higher despite a barrage of geopolitical shocks. The NASDAQ and S&P 500 hit record highs on Wednesday, despite an ongoing blockade in the Persian Gulf. Stocks pushed even higher on Thursday and Friday, as the standoff between the US and Iran continued. The rally suggests investors were more focused on what the conflict didn't do, which is derail the global economy. Tech stocks helped drive the broader market higher. Taiwan's semiconductor manufacturing company raised its revenue outlook and said it would ramp up investment to meet still surging demand for artificial intelligence chips. This week, the nation's biggest banks painted a reassuring picture of the US economy, saying consumers are still spending despite surging gas prices since the Iran War began. JP Morgan Chase and Bank of America both reported stronger profits. The Nasdaq logged its longest winning streak in three decades, rising 13 days straight to end the week 6.8% higher. The S&P 500 increased 4.5% to cross 7,100 for the first time, and the Dow Jones Industrial Average gained 3.2%.

Oil markets were a different story. Crude prices swung sharply with each headline before plunging late in the week as ceasefire hopes took hold. Brent crude tumbled 5% over the week to $90.38 a barrel. And energy was the worst performing sector in the S&P 500, falling 3.5%.

Shares and digital brokerages were among the biggest gainers of the week, after the SEC approved a proposal to end the pattern day trading rule. The rule was designed to tamp down risky bets after individual investors got burned in the.com bubble of the early 2000s. It requires investors who had a pattern of buying and selling a stock on the same day to keep a cash buffer of at least $25,000 in their margin accounts. Analysts expect the change to encourage small investors to get even more active in the US stock market. The revised rule still needs to be published in the federal register to officially take effect. Robinhood shares rallied 31% over the week, while shares in rival Webull ended 36% higher.

Gucci, Louis, and Berkins are falling out of vogue, at least in the stock market. Luxury stocks Louis Vuitton owner LVMH, Gucci owner Caring, and Berkin bag maker Hermes all warned this week about the Iran Wars effect on big spending consumers in the Middle East. The conflict has shuttered some stores in the region and disrupted international travel, keeping shoppers from visiting European boutiques. Shares in Gucci parent Caring tumbled 8% over the week, and Hermes shares slipped 0.9%.

But LVMH shares rose 3%.

The downbeat reports from top brands rippled across the sector. Prada, which reports later this month, traded at a record low relative to earnings.

Techbro footwear brand Allbirds is pivoting to the only thing Silicon Valley loves more than slip on sneakers right now, AI. Shares in the company surged more than 300% this week after the company said it will rename itself New Bird AI and will shift its business model to renting AI chips to companies. After struggling for years, the company sold off most of its sneaker-related assets last month for about $39 million. Allbirds joins a long list of companies, including a karaoke provider and an iced tea distributor that have tried to pivot to tech to improve their market performance. History has proved that the move usually doesn't work out.

And now you know What's News in Markets this week. You could read about more stocks that move on the week's news in our live markets coverage on wsj.com. Today's show was produced by Anthony Bansi with supervising producer Melanie Roy. I'm Imani Moise. Have a great weekend and catch you next Saturday.

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