US equities posted gains last week as markets continued to treat the Middle East conflict as a short-term shock for the global economy. On Friday, the US Department of Justice dropped its criminal investigation of Fed Chair Jerome Powell. This move removes a major hurdle to Trump’s nomination of Kevin Warsh to replace Powell. US retail sales rose 1.7% from the previous month, as gas station sales surged due to rising energy prices. S&P Global’s composite PMI rose to 52.0, indicating that US business activity growth recovered slightly in April. The Eurozone’s preliminary HCOB Composite PMI declined to 48.6 in April as business activity in the euro area shrank for the first time since late 2024 due to a sharp drop in the…