Looking beneath the surface of the rally.

Stock markets in the United States moved higher last week on enthusiasm for artificial intelligence (AI), strong corporate earnings, and signs of resilience in the U.S. economy, reported Connor Smith of Barron’s and Michael Msika of Bloomberg.

What makes this rally interesting is not just its momentum, but also how unusual it is from a historic perspective. It’s rare for the Standard & Poor’s (S&P) 500 Index to deliver four consecutive years of double-digit gains. “For stocks, such prolonged…advances only played out in World War II, the period of peace that followed a few years after that conflict and in the bubble of 1995-1999,” according to sources cited by Msika.

Much of the market’s recent rise has been propelled by a relatively small group of large technology and AI-related companies, while other stocks across the broader market have lagged. “Through [last] Monday, four out of five closing records for the S&P 500 happened with more stocks declining on those days than gaining. During the April rally, only 23 [percent] of S&P 500 members beat the index,” explained Edward Harrison of Bloomberg.

A team of strategists cited by Msika says there are signs the rally may be widening. In particular, smaller company stocks and emerging markets stocks may be entering a period of stronger performance after many years of lagging behind.

The current environment is a reminder that stock markets rarely move in predictable patterns. Historically, they’ve tended to have periods of strength and weakness. Today, market momentum remains powerful, and earnings growth remains strong.

Last week, 89 percent of companies in the S&P 500 had shared performance for the first three months of 2026. “Ten of the eleven sectors are reporting year-over-year earnings growth. Seven of these ten sectors are reporting double-digit earnings growth, led by the Information Technology, Communication Services, Materials, and Consumer Discretionary sectors,” reported John Butters of FactSet. Overall profits were up 27.7 percent  for the quarter.

Last week, major U.S. stock markets finished higher. U.S. Treasuries rallied, too. Yields on most maturities of U.S. Treasuries moved lower over the week.

S&P 500, Dow Jones Global ex-US, S&P GSCI Gold Index, Bloomberg Commodity Index returns exclude reinvested dividends. The three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods. 

Sources: Yahoo! Finance; MarketWatch; djindexes.com; U.S. Treasury.

Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.

WAIT, WHAT? This has been a crazy year, marked by rising inflation, geopolitical turbulence, and a stock market that can't seem to make up its mind. Amid the challenges and uncertainty, people are making the old new again. Here are brief recaps of three stories that recently caught our attention:

Pikachu was worth about $16 million. If you have a pristine trading card featuring the big-eared, red-cheeked mouse with a lightning bolt tail, you may be holding something surprisingly valuable. A few of those iconic trading cards from the ‘80s and '90s have become sought-after alternative assets, similar to art and other types of collectibles. Recently, a single rare card sold for more than $16 million. Brandon Gomez of CNBC reported:

“During key periods like the pandemic boom and another surge in 2025, trading card indexes…posted gains that far exceeded the S&P 500′s long-term average annual return of 10 [percent] to 12 [percent], according to [a] trading card valuation tool...The comparison isn’t perfect — stock data spans decades, while trends in trading card values are shorter and more volatile — but the outperformance in certain windows is still striking.”

The landline is having a moment. The humble landline is making a comeback. Parents are discovering that corded phones are a surprisingly practical tool, one that helps protect kids from smartphone addiction, social media bullying, and other difficult issues, reported Rheanna Murray of The Atlantic. Landlines also are valuable in emergencies. Ian Sherr of CNET News reported:

“…[L]andlines were once a staple in every home. While they may seem like ancient technology, they still might have a role to play today in your home – especially during a major mobile network outage.” If your smartphone can’t make calls, you may be cut off from normal lines of communication.

Barter is back. In the past, when money was less available, people would exchange goods and services to get what they needed. The practice started making a comeback in 2018, reported Gillian Tett of the Financial Times. In part, that’s because technology has made it easier to swap things online. Here’s a remarkable example:

Recently, an investment banker offered to exchange his multi-million-dollar estate in Mill Valley California for privately held shares of a prominent San Francisco startup in the artificial intelligence space, reported Kiri Blakeley of Realtor.com. The 13-acre property “comes with an infinity-edge pool, a spa, a putting green, and sweeping sightlines toward San Francisco Bay, Mount Tamalpais, and the city skyline,” reported Cris Tolomia of Quartz. Even better, it’s just a 20-minute commute from the AI company’s San Francisco office.

Human ingenuity is probably one of the most valuable assets in the world.

WEEKLY FOCUS – THINK ABOUT IT

“It is not the strongest of the species that survives, not the most intelligent that survives. It is the one that is the most adaptable to change.”

― Charles Darwin, Naturalist and author