Stocks wrapped up their longest winning run since January, rising for four straight days. The S&P 500 (SPX) surged by 4.59%, increasing by nearly 11% from its April 8 low – which propelled it out of the correction territory. The Dow Jones Industrial Average (DJIA) ended the week with a gain of 2.48%, while the tech benchmark Nasdaq-100 (NDX) soared by 6.43%.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
The week opened on a sour note as President Trump signaled a potential removal of Fed Chair Jerome Powell, raising worries about the central bank’s independence and the ability of monetary policies to withstand political pressure. Meanwhile, the U.S.-China trade tensions seemed to have reached a boiling point. Markets rebounded on Tuesday and continued their climb through Friday, as Trump gave assurances that he has no intention of firing Powell, while media reports suggested a potential de-escalation in the China tariff standoff, supporting investor sentiment.
Later in the week, the sentiment was propelled by strong earnings and other positive news from tech leaders, whose strong showings significantly contributed to the overall market performance. Stocks briefly lost steam on Friday as Trump suggested another delay to reciprocal tariffs was unlikely, while also stating that China will have to come forward with a “substantial” offer to see its levies come down. However, U.S. equities wrapped up one of their best weeks of the past decades, with futures flashing green for this week’s opening.
Markets staged an impressive recovery last week, but another record high doesn’t appear within sight. On the one hand, a younger cohort of investors – whose only brush with the bear has been the pandemic-induced market slide – continue to provide a safety net for stocks, rushing in to buy every dip. Thus, according to Goldman Sachs data, investors have funneled $154 billion into U.S. equities so far this year, marking their best start of the year since 2001. These inflows came despite the tariff fears and the apparent weakening of the U.S. economy, both of which have contributed to nerve-wracking volatility throughout the stock market.
On the other hand, investors don’t seem to be convinced that stocks are out of the woods, massively selling rallies. Last week, the ETF that follows the Nasdaq-100 – Invesco QQQ Trust (QQQ) – saw its worst investor-funds outflows since November 2024, signaling worries about the sustainability of the newborn rebound. The same pressures that have almost dragged stocks into a bear market – including tariff uncertainty and signs of an economic slowdown amid persistent inflation – continue to depress consumer and investor sentiment.
Three Economic Events
Here are three economic events that could affect your portfolio this week. For a full listing of additional economic events, check out the TipRanks Economic Calendar.
» March’s Core Personal Consumption Expenditures (Core PCE) – Wednesday, 04/30 – This report reflects the average amount of money consumers spend monthly, excluding seasonally volatile products such as food and energy. FOMC policymakers use the annualized Core PCE Price Index as their primary inflation gauge.
» Q1 2025 GDP Growth Annualized (advance estimate) – Wednesday, 04/30 – This report will provide an early insight into changes in GDP from the previous quarter. Economists project that the pace of growth remained unchanged from Q4’s 2.4% annualized rate. A higher-than-forecasted reading could weigh on the expectations for Fed rate cuts, while a lower-than-expected reading could provide the central bank with data to support rate reductions.
» April’s Nonfarm Payrolls and Unemployment Rate – Friday, 05/02 – The Nonfarm Payrolls and Unemployment reports present the number of new jobs created during the previous month, along with the percentage of people actively seeking employment in the previous month. One of the Federal Reserve mandates is full employment, and it considers labor market changes when determining its policy decisions.
For more exclusive market insights and content from TipRanks Macro & Markets research analyst Yulia Vaiman, click here.