Wall Street stocks rocketed to record highs last week, driven by "hopes of a peace deal with Iran," demonstrating how imperialist ventures and their perceived resolution directly translate into massive gains for capital. The S&P 500 closed above 7,100 for the first time, and the Nasdaq completed its longest-winning streak since 1992, with 13 consecutive days of gains. For the week, the S&P 500 jumped 4%, the Nasdaq rose 6%, and the Dow Jones Industrial Average increased 1.7%, further concentrating wealth at the top.
Imperialism's Market Windfall
Barclays strategist Venu Krishna noted that the S&P 500 moved from near correction territory, down about 9% from its peak, back to an all-time high in just 11 trading days. This rapid reversal, the fastest to record levels from a bottom of at least 9% since 1990, was largely attributed to investors pricing in an end to the U.S.-Iran conflict. Beyond the war, Wall Street also benefited from "solid bank earnings and a comeback in the beat-up software sector," revealing multiple avenues for surplus extraction.
The week's trading began with investors attempting to calculate how "overseas developments" would affect their portfolios, a consistent pattern since the U.S. attacked Iran in late February. Negotiations in Islamabad broke down, leading President Donald Trump to announce a blockade of all maritime traffic in and out of Iran's ports. However, a subsequent round of negotiations between Washington and Tehran, followed by President Trump's statement to Fox Business that the war was “very close to over,” sent stocks soaring. A session later, the president announced a ceasefire deal between Israel and Lebanon, which propelled the market to another record high. On Friday, Iran declared that the Strait of Hormuz was “completely open,” solidifying the market's gains. These events illustrate the state's direct role in shaping geopolitical conditions to serve the interests of global capital, with military actions and diplomatic maneuvers dictating market movements.
Workers' Debt Fuels Capital
Despite the "war-driven market volatility," bank earnings presented a picture of a "healthy consumer." JPMorgan reported that growth in consumer spending for the quarter surpassed the pace set in 2025, and credit card spending volume increased 9% year over year, with delinquency rates remaining stable. JPMorgan CFO Jeremy Barnum stated that “consumers and small businesses remain resilient.” Similarly, Wells Fargo’s credit card business saw new account openings jump nearly 60% year over year, and revenues from its consumer banking and lending division increased by 6.6% in the first quarter. Wells Fargo CEO Charlie Scharf noted that while consumers are spending more, including on gas, they "haven't slowed spending on everything else." This "resilience" is a testament to the working class's forced reliance on credit to maintain consumption levels amidst rising costs, effectively transferring their future earnings into bank profits and deepening debt bondage.
Major financial institutions reaped significant profits. Club holding Goldman Sachs, along with Bank of America, JPMorgan, and Morgan Stanley, all exceeded earnings expectations. Jim Cramer highlighted Goldman Sachs, stating, “The one [bank] you really want to own is Goldman because that was actually a really good quarter.” This demonstrates the continued concentration of wealth within the financial sector, even as the broader economy faces instability. Meanwhile, beaten-down software stocks, including Microsoft, CrowdStrike, and Salesforce, were among the top gainers, with the iShares Expanded Tech-Software ETF rising nearly 14%, recovering some losses, but still down roughly 20% for 2026. This sector's rebound further illustrates capital's ability to shift investments and extract value across different industries.
The State's Role in Profit
Jim Cramer suggested that further gains could be seen in stocks previously pressured by the war if "good news keeps coming," citing homebuilders like Home Depot, which jumped 3.6% on Friday. He also noted the Federal Reserve's potential to "cut rates under Kevin Warsh," framing this as an opportunity for a "move back into things that have really lagged." Such monetary policy interventions by the state are consistently deployed to stimulate capital markets and ensure profitability for investors, rather than addressing the fundamental economic struggles of the working class. The state's actions, both military and financial, are thus revealed as instruments for the protection and expansion of accumulated wealth.