Global equities closed out their strongest week since January on Friday and Brent crude settled at $97.85 a barrel, capping a five-session stretch in which the Iran-Israel ceasefire held through its second week and a wave of megacap earnings reassured investors that corporate America’s spending plans had survived the war shock largely intact.

The S&P 500 ended the week at 5,236, up 2.4 percent over the five sessions and back within 0.3 percent of the all-time closing high set on Feb. 19, the day before missile salvos across the Persian Gulf first jolted global risk markets. The Nasdaq Composite rose 3.1 percent on the week and the Dow Jones Industrial Average added 1.9 percent. The MSCI World index, broader still, posted its largest weekly gain in 15 months.

“Five weeks ago, clients were asking us how much cash to raise,” said Priya Venkatesan, head of U.S. equity strategy at Jefferies. “This week, the same clients were asking which sectors to lean into for the back half. The mood shift has been faster than the fundamentals, frankly, but the fundamentals are doing their part too.”

Earnings did most of the heavy lifting. Microsoft beat consensus on revenue and operating income late Wednesday and reiterated its capital-spending guidance for the cloud and AI infrastructure buildout, sending the stock up 4.2 percent the following session. Alphabet topped estimates on cloud and YouTube ad revenue and added 3.8 percent Friday. Meta Platforms guided full-year capex slightly higher and rose 5.6 percent. Tesla disappointed on automotive margins but a more upbeat tone on energy storage helped pare losses.

Of the 142 S&P 500 companies that have reported first-quarter results to date, 79 percent have beaten on earnings and 67 percent on revenue, according to FactSet figures circulated Friday afternoon, slightly ahead of the trailing five-year averages. Apple, Amazon, and a clutch of industrials are due to report next week in what analysts described as the season’s most concentrated stretch.

In the oil pit, the calmer tone was just as pronounced. Brent crude closed the week down 3.8 percent, its fourth consecutive weekly decline, with the global benchmark now trading roughly 22 percent below the $125 peak reached during the worst days of the conflict. West Texas Intermediate settled at $93.70.

“The arithmetic is straightforward,” said John Reilly, head of commodities strategy at Citi. “OPEC+ delivered the 1.5 million barrels per day they promised on April 1. Iraqi southern fields are running near full tilt. Saudi and Emirati flows are back, and tanker traffic through Hormuz is within 4 percent of pre-war averages. The war premium is being squeezed out one tape at a time.”

Reilly said his desk now sees Brent averaging $90 in the third quarter, a forecast Citi first floated earlier in the week and which more banks have since echoed. Goldman Sachs moved its third-quarter call to $93 from $99 in a note Thursday evening. JPMorgan revised to $91.

The energy unwind has begun to feed through to inflation expectations. Five-year breakeven inflation rates implied by Treasury Inflation-Protected Securities fell six basis points on the week to 2.31 percent, the lowest reading since January. Fed funds futures now imply a roughly 62 percent probability of a quarter-point cut at the Federal Open Market Committee’s June 17 meeting, compared with about 30 percent a week earlier.

“If the energy print rolls over the way it looks like it will, the path back to the 2 percent target gets a lot shorter,” said Mark Holloway, chief economist at Barclays. “We’re now penciling in headline CPI of 2.7 percent for the third quarter, down from 3.4 percent in our pre-ceasefire baseline. That isn’t a green light to ease, but it changes the conversation at the FOMC.”

European markets matched the New York move. The Stoxx Europe 600 added 2.1 percent on the week and Germany’s DAX hit a fresh closing high. Airlines and consumer cyclicals led the rally. Ryanair rose 7.4 percent over five sessions after the carrier reported a summer booking surge to Mediterranean destinations and pulled forward its delivery schedule for additional Boeing 737 MAX aircraft. Lufthansa added 5.1 percent.

Asian markets capped the week with broad gains. Japan’s Nikkei 225 rose 2.6 percent on the week and Hong Kong’s Hang Seng added 3.4 percent, with shipping and reinsurance names leading after Lloyd’s of London on Thursday cut its Hormuz transit surcharge for the third time this month. The combined reduction now stands at roughly 70 percent off the early-April peak.

Not every corner of the market joined the rally. Defense contractors continued to give back gains accumulated during the conflict, with Lockheed Martin down 2.7 percent on the week and Northrop Grumman off 3.1 percent, as analysts pared forecasts for follow-on Patriot and THAAD interceptor orders. Gold settled at $2,584 an ounce, its lowest weekly close since mid-February. The Cboe Volatility Index, which had spiked above 38 during the worst days of March, ended Friday at 14.6, comfortably below its long-run average.

The dollar weakened modestly against a basket of major currencies. The euro traded at $1.096 and the Japanese yen firmed to 148.80 per dollar after Bank of Japan Governor Kazuo Ueda told reporters Thursday that the central bank’s June meeting would weigh “the changed external environment.” Emerging market currencies broadly strengthened, with the Turkish lira up 2.4 percent on the week and the Indian rupee at 82.10 after touching 84 during the war.

Treasury yields drifted higher as safe-haven flows reversed. The 10-year note ended the week at 4.21 percent, up seven basis points, while the two-year held near 4.06 percent. Investment-grade credit spreads tightened to within two basis points of pre-war levels, according to ICE BofA index data.

Analysts cautioned that the recovery still rests on the durability of a ceasefire that has already absorbed four discrete violations since taking effect April 15, the most recent a rocket fired from southern Iraq toward Kuwaiti airspace overnight Wednesday and intercepted without damage. United Nations observers in the Strait of Hormuz issued a statement late Friday saying the truce remained “broadly holding” but flagged what they described as elevated chatter on militant channels in Yemen.

“The tape is one significant violation away from a very different conversation,” Venkatesan said. “But for now, the institutional flow is firmly back in the market, and you can see it in the volume prints.”

Traders said the focus next week would shift to Apple and Amazon earnings on Thursday, the European Central Bank’s monthly bulletin, and a Wednesday OPEC+ technical committee meeting in Vienna, where ministers are expected to confirm that the April production hike will roll forward into May without further adjustment.