Prosperity Partners Blog
Retail Sales Surge on Higher Gasoline Prices
The Nasdaq hit fresh record highs on Wednesday, Thursday, and Friday, capping off a strong week for tech stocks. On Wednesday, the S&P 500 also made history, closing above 7,000 for the first time. It kept building on those gains through the end of the week.
Stocks Rise to New Highs
The Nasdaq hit fresh record highs on Wednesday, Thursday, and Friday, capping off a strong week for tech stocks. On Wednesday, the S&P 500 also made history, closing above 7,000 for the first time. It kept building on those gains through the end of the week.
Inflation Heats Up as Gasoline Prices Surge
Led by a 10.9% rise in energy, including a 21% rise in gasoline, the US Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose 0.9% in March, the highest in almost four years. On an annual basis, prices rose 3.3%.
It’s Not Just Oil – Key Commodities That May Soon Be in Short Supply
Oil has captured much of the attention amid the conflict in the Middle East. While a limited number of tankers are transiting the region, the Strait of Hormuz is largely blocked, disrupting nearly one-fifth of the world’s oil supply.
California’s Delicate Energy Situation
How long the war might last is not clear, but its effects are being felt in global energy markets. Oil moves easily across borders, which means supply disruptions quickly lead to higher gasoline prices.
Decoding the Fed: Impact on Investors
Against the backdrop of the war, the Federal Reserve met last week and decided to hold its key rate—the fed funds rate—unchanged at 3.50–3.75%. The decision was completely expected.
Looking Past the Pump: A Granular Look at Gasoline Prices
There are fears that higher prices will exacerbate inflation and hurt the economy, as cash that might have gone to other items will be diverted to the gas tank.
The War and Its Impact – So Far
What is the efficient market theory? Textbooks have been written to fully explain the theory. But if we can sum it up in one sentence: Assets, such as stocks, reflect all publicly available information. It is a foundational principle of finance.
Navigating Volatility
Over the weekend, global markets were shaken by significant geopolitical developments, as the US and Israel carried out coordinated strikes on Iran that resulted in the death of Iran’s Supreme Leader. Iran responded with missile strikes, which escalated tensions and heightened uncertainty in global markets.
Q4 Government Shutdown Drafs on GDP Supreme Court Blocks Tariff Plan
The government shutdown proved to be a far greater drag on the economy than earlier estimates indicated. On Friday, the U.S. BEA reported that fourth-quarter Gross Domestic Product (GDP), the largest measure of economic output, grew at a 1.4% annualized pace. This compares with a 4.4% annualized pace in Q3.
Revisiting 2025 Employment
The US Bureau of Labor Statistics published its final benchmark revisions covering employment during the 12‑month period between April 2024 and March 2025. The revisions showed that payrolls were revised lower by 898,000 jobs compared with the originally reported figures.
Markets Rotate: What’s Driving the Shift; Plus, the Dow Crosses a Milestone
After leading markets for much of the past two years, AI, tech stocks, and software specifically, are losing leadership in early 2026, as investors rotate capital toward other sectors, including energy, industrials, and defensive sectors.