Global financial markets navigated a week of significant central bank developments and internal divisions. The U.S. Federal Reserve held interest rates steady, but an 8-4 voting split—the most dissents since 1992—revealed internal disagreement over an easing bias. Outgoing Chairman Jerome Powell affirmed he would remain a Fed governor, avoiding high-profile dissent to his successor. Meanwhile, the Bank of Japan also maintained its key policy rate, though a 6-3 vote for a hike indicated its largest board split since 2016. Facing rising energy prices and a slumping currency, Japan’s Ministry of Finance intervened to bolster the yen.
Geopolitical tensions further reshaped energy markets. Brent crude briefly spiked to a four-year high above $126 a barrel amid the ongoing U.S.-Iran stalemate. The upcoming OPEC+ meeting, expected to boost oil output, will be overshadowed by the United Arab Emirates’ announced departure from the cartel on May 1. This move, reflecting a growing rift, is projected to diminish OPEC’s market influence and risks a future price war, solidifying the U.S. as the dominant global energy superpower. European energy majors BP, Shell, and TotalEnergies reported strong gains from their trading operations, highlighting an industry divide.
Despite market turbulence, equities demonstrated resilience, with the S&P 500 and Nasdaq achieving their biggest monthly gains since 2020. The artificial intelligence (AI) arms race was a key driver, reflected in mega-cap earnings. Alphabet, the parent company of Google, and e-commerce and cloud giant Amazon both surpassed revenue estimates on robust cloud growth. Technology firm Apple also saw shares climb on a strong sales forecast. Conversely, social media company Meta disappointed investors, and software and cloud provider Microsoft reported more modest cloud revenue growth.
