Stocks Recover from Early Losses
On Monday, U.S. stocks bounced back after a weak start. The Dow Jones Industrial Average rose by 0.3%, while the S&P 500 managed to erase a 1% drop and closed just above flat. This marks the fifth straight day of gains for both indexes. The Nasdaq Composite ended slightly lower as tech stocks tried to recover.
Big Week for Tech Earnings
Investors are preparing for a major week in earnings. Apple (AAPL), Amazon (AMZN), Meta (META), and Microsoft (MSFT) are all set to report their results. These reports will help show how major tech companies are performing under economic pressure.
Other big names like Coca-Cola, Eli Lilly, and Chevron will also share their quarterly numbers.
Trade Tensions and Tariff Talks
Markets improved last week after President Donald Trump eased pressure on Federal Reserve Chairman Jerome Powell. He also hinted that the high 145% tariffs on Chinese goods could be reviewed soon.
Treasury Secretary Scott Bessent said it was now up to China to reduce trade tensions. He pointed out that China’s decision to remove tariffs on some U.S. goods is a step in the right direction.
Economic Reports to Watch
Investors are also watching key reports due this week. On Wednesday, the Personal Consumption Expenditures (PCE) index will be released. It’s the Fed’s preferred way to track inflation and will show how tariffs affect everyday spending.
The first estimate of U.S. GDP for Q1 is also expected. This will give a clearer picture of how the economy performed in early 2025.
Strong Job Market Remains a Positive Sign
Despite worries about the economy, the U.S. labor market remains strong. The upcoming April jobs report will show if hiring is still holding up. A strong labor market could help balance out other economic risks.
