The stock market continued grinding higher this week with no major trend changes, despite what appears to be a growing disconnect between Wall Street and Main Street. Semiconductors and energy led the gains, with crude oil, gasoline, and the Canadian energy sector hitting new highs. Meanwhile, gold stocks were the worst performers, and consumer discretionary stocks continue to outperform staples—an unusual signal given concerns about economic slowdown.
Seasonality has played out almost perfectly in 2026, with volatility falling from March into late April and stocks rising accordingly. However, a major risk may be building globally as countries and companies increasingly shift away from U.S. products and defense systems. This potential loss of foreign revenue for U.S. companies may not yet be priced into the market, leaving the door open for a significant decline later in the year.
Stephen Whiteside
Sunday, May 3, 2026
