Stocks closed higher again yesterday, adding to Wednesday's soaring gains.

All of the major indexes are out of pullback territory (decline from high close of -5% to -9.99%). Currently, the largest decline is from the Nasdaq with -4.74%, while the smallest decline is from the mid-cap S&P 400 with -2.03%. The Dow is down -3.99%, the S&P is down -2.21%, and the small-cap Russell 2000 is down -3.03%, from their respective high closes.

YTD looks even better. The S&P 400 is up 6.92%. The Russell 2000 is up 6.22%. The Dow is up 0.25%. The S&P 500 is off -0.30%. And the Nasdaq is off -1.81%.

For context, at their worst, the Nasdaq was down as much as -13.64% from their all-time high close to their recent low. The Russell 2000 was down as much as -11.54%. And the S&P 500 was down as much as -9.48%.

What a difference 8 trading days can make.

In spite of the uneasy ceasefire agreement, the market is hopeful that the temporary truce can last, and that it could lead to something more permanent.

But reports of Iran firing at Gulf states on Wednesday, and then again on Thursday, are testing that.

And President Trump, in regard to reports that Iran is charging fees for passage through the Strait of Hormuz, said they "better stop now."

The next round of discussions are to be held on Friday and Saturday in Pakistan. Delegations from both the U.S. and Iran will be in attendance, along with Pakistan's Prime Minister, who will be hosting the talks.

In other news, yesterday's third and final Q4'25 GDP report showed the economy grow at 0.5%. That's down from the first estimate of 1.4%, and the second estimate of 0.7%.

And yesterday's Personal Consumption Expenditures (PCE) index (which is the Fed's preferred inflation gauge) showed the headline rate ticking up 0.4% m/m vs. last month's 0.3%, but in line with expectations. The y/y rate came in at 2.8%, same as last month and views for the same. The core rate (ex-food & energy), was up 0.4% m/m as well, which was in line with last month's pace, but slightly above the consensus for 0.3%. The y/y rate eased to 3.0% vs. last month's 3.1% and forecast for 2.9%. Note: yesterday's report was for February, so it did not include any of the increase in energy prices due to the Middle East conflict.

But this morning's Consumer Price Index (retail inflation), however, will be for March. And, it will include the rise in energy prices. The headline rate is expected to be up 0.9% m/m vs. last month's 0.3% pace, while the y/y rate increases to 3.4% vs. last month's 2.4%. The core rate is expected to be up 0.3% m/m vs. last month's 0.2%. The y/y rate is expected to come in at 2.7% vs. last month's 2.5%.

We'll also get the Factory Orders report. And Consumer Sentiment. (Always an important gauge given that roughly 70% of GDP comes from consumer spending, and a happy and confident consumer is generally one that spends.)

With one more day to go, all of the major indexes are up for the week. If all goes well, that will make it 2 up weeks in a row for the big three indexes, and 3 up weeks in a row for the small-cap and mid-cap indexes.

Best,