Matt Britzman, senior equity analyst, Hargreaves Lansdown: “Global markets have staged one of the fastest recoveries in recent memory, with both the FTSE 100 and S&P 500 now back in positive territory for the year after a bruising start to 2026. The S&P 500 closed at a fresh all-time high yesterday, a powerful reminder of just how quickly sentiment can turn once the outlook begins to stabilise. It reinforces a simple yet often-overlooked truth: trying to perfectly time the bottom is exceptionally difficult, even for seasoned investors. In periods of heightened volatility, as we have seen recently, the best course of action is often to stay invested and avoid trying to time the peaks and troughs.
Oil prices remain elevated above $90 a barrel after a volatile start to the week, as investors look towards a possible extension of the ceasefire between the US and Iran while weighing the chances of a broader agreement that could ultimately reopen the Strait of Hormuz. Reports suggest the US and Iran are considering extending their two-week truce to allow more time to negotiate a lasting peace deal. For now, markets appear willing to look past higher oil prices, but reopening the Strait is key to sustaining this broader risk-on appetite. In the meantime, the flow of oil and gas is still effectively cut off, paving the way for more volatility ahead.
UK GDP delivered a stronger-than-expected bounce in February, rising by 0.5% on the month and suggesting the UK economy entered the year with more momentum than many had assumed. But forward-looking activity surveys for March point to the conflict with Iran already taking the wind out of that growth as higher energy costs begin to feed through. Growth will likely slow from here as conditions become more challenging, which is one of the reasons we expect the Bank of England to hold rates steady amid volatile energy prices rather than implement hikes.
TSMC reported a 58% jump in first-quarter profit to record levels, as demand for its most advanced chips continued to surge. The world’s largest chip manufacturer saw growth driven by rising demand for the technology used in data centres and AI systems. AI-related demand is an ever-growing driver of sales, while smartphone orders softened as higher memory costs began to weigh on more traditional devices. That shift underlines the strength of the ongoing AI buildout, with AI customers quickly taking up any spare capacity left by weaker demand elsewhere. The valuation doesn’t make for a perfect entry point, but TSMC remains an exceptional business at the centre of an AI buildout that is still in its early stages, with scope for revenue and profits to keep beating expectations - an attractive name for long-term investors.”
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