The S&P 500 closed higher for a fourth consecutive day on Friday, culminating in a robust 4% weekly gain. This marks the second positive week out of the last three, signaling a potential shift in market sentiment. The rally comes as investors grapple with the evolving global trade landscape, particularly the ongoing impact of President Donald Trump’s tariffs.
Major tech companies played a significant role in the surge. Alphabet, the parent company of Google, saw a 1.5% increase after reporting strong first-quarter earnings. Tesla experienced an even more dramatic rise, jumping 9.8%. Other tech giants like Nvidia and Meta Platforms also saw substantial gains, adding 4.3% and 2.7%, respectively. These gains were not limited to just the S&P 500; the Nasdaq Composite climbed 6.7% for the week, while the Dow Jones Industrial Average also saw a 2.5% increase.
However, the market’s positive momentum has been punctuated by volatility in recent weeks. Conflicting statements regarding trade negotiations between the U.S. and China have contributed to this uncertainty. While China denied any ongoing trade talks, President Trump’s comments have oscillated between suggesting potential deals and maintaining a hardline stance on tariffs. This mixed messaging has left investors navigating a complex and unpredictable situation.
Despite the recent confusion, some analysts remain optimistic. Jay Hatfield, founder and CIO of InfraCap, believes the market has reached “peak tariff tantrum” and anticipates a more positive outlook. He points to upcoming earnings reports from major tech companies like Microsoft and Amazon as key drivers for the market’s performance next week.
The overall market performance remains mixed. While the Nasdaq is now slightly positive for the month, the S&P 500 is down 1.5% and the Dow has fallen 4.5% in April. This highlights the ongoing challenges and the need for continued caution in the face of evolving global economic conditions. The coming week’s earnings reports will be crucial in determining the next direction of the market.
