Washington headlines drive volatility, @SecScottBessent comments on global trade, and results continue to emerge from Q1 earnings season. @MReinking details these developments and more on this week’s Market Storylines.
🎧: https://t.co/2OMLHcJnEn pic.twitter.com/gzosdhhgPs
— NYSE 🏛 (@NYSE) April 25, 2025
The stock market experienced significant volatility last week, largely driven by President Donald Trump’s remarks on Federal Reserve Chairman Jerome Powell and the ongoing trade war with China. On Monday, the S&P 500 dropped over 2% following Trump’s attacks on Powell and unclear details about tariff negotiations. However, by Tuesday, the market began to recover after Treasury Secretary Scott Bessent indicated there would be a “de-escalation” in the trade tensions with China.
This sparked a three-day rally for the S&P 500, with continued gains despite mixed messages about trade talks. By the week’s end, the S&P 500 and the Nasdaq had risen by 4.6% and 6.7%, respectively. The tech-heavy Nasdaq’s strong performance brought it into positive territory for the month of April.
Stocks set for weekly gains as the U.S. seeks better trade terms with China and India. @KristenScholer has more in the Market Update. pic.twitter.com/zXKI5XoUSV
— NYSE 🏛 (@NYSE) April 25, 2025
Notably, Broadcom gained 12.5% and CrowdStrike rose by 13%. Despite these gains, the S&P 500 was still down 1.5% for April, as health care and materials sectors struggled. The Dow Jones Industrial Average rose by 2.5% for the week but was still down 4.5% for the month.
Stock market today, 28 April: Bulls bring back MONDAY MAGIC; big feat for RIL – Why Sensex, Nifty gained | Closing Bell#StockMarket #Nifty #Sensex https://t.co/D32pc07EVb
— ET NOW (@ETNOWlive) April 28, 2025
Earnings reports from consumer-facing companies highlighted ongoing concerns about the economy and inflation, with people spending less freely. The University of Michigan’s April consumer sentiment index, while slightly improved, still painted a grim picture. Four companies in our portfolio reported their quarterly results last week.
#Q4WithETNOW | KPIT Tech Q4: Cons PAT up 30.9% QoQ, revenue rises 3.4%@kpit #StockMarket #EarningsWithETNOW pic.twitter.com/uR9IojTJCy
— ET NOW (@ETNOWlive) April 28, 2025
Danaher saw a nearly 5.5% increase after showing signs of recovery.
Nasdaq boosted by strong tech earnings
Capital One also reported strong credit quality, contributing to a 12% jump in its stock.
Other financial stocks in the portfolio, including Wells Fargo, Goldman Sachs, and BlackRock, also performed well. However, we lowered our price target on Bristol Myers Squibb due to unresolved financial issues, leading to a 2.7% decline for the week. On the other hand, Dover’s conservative guidance was well-received, with shares rising 5%.
Looking ahead, the focus will be on economic data, particularly around employment and inflation. Key reports include the Job Openings and Labor Turnover Survey (JOLTS) and ADP’s private job creation data, culminating in the official nonfarm payrolls report from the government. Analysts expect 150,000 new jobs in April, with the unemployment rate holding steady at 4.2%.
Inflation data will also be crucial. The Fed’s preferred inflation measure, the Personal Consumption Expenditures (PCE) index, is expected to show a 2.6% increase year-over-year for March. This will provide insights into price pressures before the recent tariff escalations.
Lastly, it’s another busy week for earnings, with several key companies reporting. Notable among them are Honeywell, Starbucks, Meta Platforms, and Microsoft. Each company’s report will be dissected for insights into how trade wars and economic uncertainty are impacting business performance and future guidance.
