The upcoming week is set to be a crucial one for the markets, as investors face a number of significant events that could determine the direction of U.S. stocks. Among the key highlights are earnings reports from major corporations like Apple, Microsoft, Amazon, and Meta Platforms, which are expected to shed light on the state of the economy and provide insights into how the market might fare moving forward. Investors will also closely monitor U.S. economic data, including the monthly employment report, first-quarter GDP growth, and inflation updates, all of which are likely to have a substantial impact on market sentiment.
Despite recent gains, the S&P 500 remains down by around 10% from its February high, and the market’s outlook hinges on whether the recent rebound signifies the end of a tariff-induced slump in equities. The past week has seen a boost in market sentiment, driven by signals that the Trump administration might soften its stance on trade, particularly with China. While the possibility of a tariff de-escalation has fueled optimism, the situation remains uncertain, and new developments could quickly turn the tide. Market expert Michael Mullaney highlighted that any news related to tariffs could cause sharp movements in stock prices, either driving them up if it’s positive or pushing them down if it’s negative.
Alongside trade uncertainties, earnings reports will be a key focus for investors. Around 180 S&P 500 companies, representing over 40% of the index’s market value, are set to report quarterly results. Many of these companies, particularly those in the tech sector, are facing challenges after strong performances in recent years. However, profits are still expected to surpass expectations, with S&P 500 earnings projected to rise by 9.7% year-over-year for Q1.
At the same time, concerns persist over the potential impact of tariffs on global trade and economic growth. The upcoming economic data, including GDP figures for the first quarter and inflation readings, will provide further clues as to how these developments are influencing the economy. One of the most anticipated reports is the U.S. jobs report, set to be released on May 2, which could offer critical insight into the health of the labor market and its potential to drive future economic growth.
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