US Stock market: S&P 500 edges up as investors brace for data, megacap earnings
The S&P 500 inched higher on Monday as Wall Street braced for a busy week of earnings reports and economic data. Investors were also keeping a close eye on progress in trade deal negotiations, particularly with China and India.
The S&P 500 gained 0.06%, closing at 5,528.75, marking its fifth consecutive day of gains. The Nasdaq Composite, however, ticked 0.1% lower, finishing at 17,366.13. The Dow Jones Industrial Average rose by 114.09 points, or 0.28%, to settle at 40,227.59.
Among the “Magnificent Seven” tech giants—Amazon, Apple, Meta Platforms, and Microsoft—investors showed caution ahead of their upcoming quarterly reports. Apple and Meta saw modest gains of about 0.4%, while Microsoft slipped by 0.2%. Amazon, however, dropped 0.7%.
Earnings reports so far have been strong, with 73% of companies exceeding analysts’ expectations. However, analysts note that Wall Street is lowering its outlook for the second quarter and the full year as a result of uncertain guidance, particularly due to the impact of President Donald Trump’s tariffs on global trade.
On the trade front, Treasury Secretary Scott Bessent gave little clarity on the direction of negotiations with China but said the United States was not solely responsible for resolving the trade tensions. Bessent added that progress was being made on other trade proposals, and a potential deal with India might be one of the first to materialize.
Bessent’s comments came after Trump indicated that trade talks with China were ongoing, refuting claims from Beijing that no negotiations were taking place. “I believe that it’s up to China to de-escalate, because they sell five times more to us than we sell to them,” Bessent said on CNBC’s “Squawk Box,” referring to the unsustainable nature of the existing tariff structure.
Despite these discussions, Barclays economist Jonathan Millar expressed skepticism about the potential for substantial progress in trade talks. “This is mostly talk, for now, and we remain skeptical that there will be enough concrete momentum in trade discussions to sidestep a U.S. recession,” Millar wrote in a recent note.
April has been a volatile month for stocks, with the S&P 500 down by more than 1% as of Monday, roughly 10% below its 52-week high reached in February. The Dow is poised to lose over 4% for the month, while the Nasdaq Composite is up around 0.4%. The S&P 500 briefly entered a bear market earlier in the month but has since made a recovery, although it has struggled to break through key resistance levels.
Looking ahead, the week will be packed with important economic reports. On Friday, the U.S. will release its nonfarm payrolls report, and Wednesday will bring key data on first-quarter GDP and inflation. These reports could provide more clarity on the health of the labor market and the broader economy.
As investors digest earnings results, trade tensions, and economic data, all eyes will be on how these factors shape Wall Street’s performance in the coming days.