This Weekly Financial Markets Update reviews the top market headlines: Inflation Accelerates in April, Retail Sales Sustain Momentum in April, Corporate Earnings Growth Doubles in Q1
  • The Consumer Price Index (CPI) rose at 3.8% annual pace in April
  • Retail sales rose 0.5% in March
  • The Q1 2026 earnings growth rate for S&P 500 companies stands at 27.7%

Top Three Market Headlines

Inflation Accelerates in April: The U.S Bureau of Labor Statistics reported last week that the Consumer Price Index (CPI) rose 0.6% over the month of April. Compared to the prior year, the CPI was 3.8% higher, which was up from 3.3% in March and represented the fastest pace since May of 2023. The acceleration in April was largely driven by the energy index, which was up 17.9% for the last 12 months, while the food index rose 3.2%. The core CPI, which excludes the volatile food and energy categories, rose at a more subdued rate, up 0.4% in the month and 2.8% year over year, both up 0.2 percentage points from March.

Retail Sales Sustain Momentum in April: The U.S. Census Bureau reported last week that sales at U.S. retail and food service establishments rose 0.5% in April, marking a third straight month of growth. The largest contributor to April's result was gasoline stations, where sales increased nearly 3%, reflecting higher fuel prices resulting from the conflict in the Middle East. However, sales across other business segments of the economy were relatively strong as well, as overall sales excluding automobiles and gasoline products also increased 0.5% on the month, keyed by growth in internet sales and restaurants.

Corporate Earnings Growth Doubles in Q1: Earnings growth accelerated at a rapid pace across corporate America in Q1 of 2026. With 91% of S&P 500 index companies reporting results through last week, the combined year-over-year earnings growth rate for the index stood at 27.7%, nearly double the 14.2% year-over-year growth rate in the prior quarter, according to FactSet. If this rate sustains, it will mark the highest earnings growth rate since Q4 2021. At a sector level, ten of eleven sectors are reporting earnings growth, including seven in the double-digits, with particular strength seen in the Information Technology, Communication Services, Materials, and Consumer Discretionary sectors.

Please note: There will be no Weekly Financial Markets Update published next Monday, May 25, due to Memorial Day.

As of May 15, 2026 Week Quarter-To-Date Year-To-Date One-Year
MSCI All Country World 0.55% 12.53% 8.92% 27.10%
S&P 500 0.17% 13.62% 8.70% 26.75%
Russell 2000 -2.34% 12.00% 12.99% 35.07%
MSCI EAFE -1.56% 7.25% 5.92% 21.70%
MSCI Emerging Markets -2.45% 19.70% 19.51% 44.99%
FTSE NAREIT Equity -2.19% 7.37% 12.52% 16.06%
Bloomberg Commodity 1.89% 4.66% 30.21% 44.16%
Bloomberg U.S. Aggregate -1.14% -0.66% -0.71% 4.48%

US Bureau of Labor Statistics 5/12/2026, US Census Bureau 5/14/2026, FactSet 5/15/2026. Data from Morningstar Direct. Returns for periods greater than one year are annualized. Investment advisory services are offered by Gallagher Fiduciary Advisors, LLC ("GFA"), an SEC registered investment advisor that provides retirement, investment advisory, discretionary and independent fiduciary services. Registration as an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the SEC. GFA is a limited liability company with Gallagher Benefit Services, Inc. as its single member. GFA may pay referral fees or other remuneration to employees of Arthur J. Gallagher & Co. or its affiliates or to independent contractors; such payments do not change our fee. Neither Arthur J. Gallagher & Co., GFA, their affiliates nor representatives provide accounting, legal or tax advice. GFA does not express an investment opinion regarding any specific commodity, sector or individual security. Unless otherwise expressly noted, the contents of this communication do not constitute securities or investment advice, nor should this communication be construed as an opinion regarding the appropriateness of any investment. The information provided cannot take into account all the various factors that may affect your particular situation, therefore you should consult your GFA consultant before acting upon any information or recommendation contained herein to discuss the suitability of the information/recommendation for your specific situation.