Market Stabilizes Despite Trump-Powell Tensions, Big Week Ahead

Stocks experienced a drop on Monday due to rising tensions between President Donald Trump and Federal Reserve Chair Jerome Powell. However, these concerns were quickly alleviated, allowing the broader market to recover and see a strong performance by the end of the week. Optimism surrounding the U.S.-China trade war eased investor sentiment. Notably, Trump’s comments were more optimistic about the negotiations than those from China. A megacap tech rally on Thursday propelled the Dow Jones Industrial Average (DJI), S&P 500 Index (SPX), and Nasdaq Composite (IXIC) to secure their third consecutive gains. As of Friday, the three major benchmarks fluctuated but remained poised for significant weekly gains.

Blue Chips in Focus

This week brought noteworthy actions among blue-chip stocks. Verizon’s (VZ) first-quarter earnings and revenue exceeded expectations, yet the company revealed a larger-than-anticipated loss of 289,000 postpaid net phone subscribers. Similarly, shares of Procter & Gamble (PG) and Merck (MRK) fell after both companies reduced their full-year forecasts, despite reporting positive earnings. Furthermore, Salesforce (CRM) and Amazon.com (AMZN) faced downgrades, while JPMorgan Chase (JPM) showed a critical test of a trendline associated with previous bullish activity on its charts.

Sector Highlights This Week

Various sectors gained attention over the week. Cruise stocks were under pressure from broader market trends, but one company within the sector displayed “buy-the-dip” potential. Meanwhile, cryptocurrency stocks benefited from Bitcoin’s (BTC) resurgence above $90,000. The electric vehicle (EV) sector found support from Tesla’s (TSLA) post-earnings surge mid-week. Airline stocks persist in a downward spiral for 2025 due to pulled forecasts, while China stocks saw a temporary rebound. In the pharmaceutical sector, two stocks exhibited contrasting movements.

Anticipating April Jobs Report and Upcoming Tech Earnings

The end of April promises a wave of significant economic data, including the personal consumption expenditures (PCE) index and the pivotal April employment report. Investors will also sift through numerous earnings reports, including those from notable tech companies.

For those seeking potential stocks to target following the broader market pullback, insights from Schaeffer’s Senior Quantitative Analyst Rocky White can guide your selections. Additionally, there are several S&P 500 trendlines worth monitoring amidst ongoing market volatility, as noted by Schaeffer’s Senior V.P. of Research Todd Salamone.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.