MARKET COMMENTARY

Last week brought strength in technology stocks via earnings and some tariff rhetoric relaxation, making it an opportune time to share an overview of what happened and what•s ahead. Read on for a summary of what you should know.

Weekly Stock Index Performance

Major U.S. stock indexes bounced back last week, with strong tech earnings setting the tone after a volatile start to the week last Monday.

• The S&P 500 rose by 4.59%. 
• The Dow Jones Industrial Average increased by 2.48%.
• The Nasdaq 100 soared by 6.43%. 

Tech Strength & Earnings

• Tech led the way last week with solid earnings results from Alphabet (Google).
• According to data from Factset released on April 25th, with 36% of S&P 500 companies reporting results so far, 73% showed a positive earnings per share surprise, and 64% reported a positive revenue surprise.
• So far, the blended year-over-year earnings growth rate for Q1 2025 is 10.1%. If 10.1% ends up as the final number once all S&P 500 companies report Q1 earnings, it will mark the second consecutive quarter of double-digit growth for the index.

Easing Tariff Rhetoric

• Tariff talk was on the softer side last week, standing as a partial catalyst for market sentiment rising. 
• Last Friday, reports emerged that China quietly rolled back tariffs on U.S. semiconductors, easing pressure in the tech sector as tech stocks rallied.

Consumer Sentiment Sours Further

• Data compiled by the University of Michigan showed consumer sentiment diving in April to one of the lowest numbers on record, making it four months in a row for souring consumer sentiment
• While that might sound concerning, the number was better than expected, with the reading showing 52.2 versus the 50.8 forecasted.

The Week Ahead

• Earnings season is in full swing, and it•s earnings week for the •Magnificent 7.• We will get results from Microsoft. Amazon, Meta, and Apple • so it's the biggest week of the earnings season.
• In addition, there are plenty of economic data releases: quarterly Gross Domestic Product (GDP) data, the Fed•s favorite inflation indicator in the form of Core Personal Consumption Expenditures (PCE), and the monthly employment number on Friday.

That•s it for this week•s update! If you•d like to explore any of these topics further or have any other questions or needs as the week unfolds, don•t hesitate to reach out. We are always here as a resource for you.