S&P 500 Gains on Tech Strength Amid Trade Uncertainty

The S&P 500 increased on Friday, contributing to a strong week of gains as investors evaluated a changing global trade landscape. Major technology stocks propelled the broader market upward last week.

The major indices posted rises for the week, marking their second consecutive positive week out of three. The S&P 500 climbed 4.6%, the Dow Jones rose 2.5%, the Nasdaq advanced 6.7%, and the Russell 2000 gained 4.1% as of April 25, 2025.

Despite this week’s rally, April has seen mixed results overall. The Nasdaq is slightly up for the month, whereas the S&P 500 is down 1.5% month-to-date, and the Dow has fallen 4.5%.

Tech Stocks Drive Market Upward

On April 25, big tech stocks were pivotal in the market rise. Alphabet (GOOGL) rose 1.7% after reporting better-than-expected first-quarter earnings in both revenue and profit. Tesla (TSLA) surged 9.8%, while NVIDIA (NVDA) and Meta Platforms (META) saw increases of 4.3% and 2.7%, respectively, on the same day.

Uncertain Trade Relations Impact Markets

Market volatility remains high as traders respond to ongoing changes in global trade policies. Uncertainty has arisen regarding U.S.-China trade discussions after China stated on April 24 that no negotiations were currently in progress, despite earlier U.S. indications of a potential easing of tensions.

Adding to the confusion, President Donald Trump recently indicated that he would view it as a “total victory” if high tariffs between 20% and 50% on foreign imports remain in place a year from now, as cited by CNBC. However, in comments made earlier this week but released Friday, he suggested that trade deal announcements might happen “over the next three to four weeks.” Trump noted that tariffs would not be lifted unless China “gives us something substantial,” emphasizing a need for China to be “open” to more U.S. goods.

Optimism Among Market Strategists

In spite of the ongoing uncertainty, some strategists maintain an optimistic outlook. Jay Hatfield, founder and chief investment officer at InfraCap, believes the most disruptive effects of tariff uncertainty may have peaked. He anticipates a favorable outlook going forward.

Looking ahead, Hatfield highlights upcoming earnings reports from major companies like Microsoft and Amazon as significant drivers for market movement in the coming week.

Crypto Rally Sparking Interest

Last week, the TRUMP meme coin experienced a surge following an announcement of a private gala dinner with Donald Trump for the top 220 buyers, scheduled for May 22 at Trump National Golf Club. The Trump family is expanding its crypto involvement with ventures such as World Liberty Financial and a pivot by Trump Media. Trump has expressed intentions to be “America’s first crypto president,” which is seen as potentially easing cryptocurrency regulations and subsequently boosted key cryptocurrencies, including Bitcoin.

Top Performing ETFs Last Week

In this context, several leveraged exchange-traded funds (ETFs) stood out as top performers last week:

Tech – Direxion Daily Semiconductor Bull 3X Shares (SOXL) – Up 43.0%

Leveraged Nasdaq – ProShares UltraPro QQQ (QQQ) – Up 24%

Leveraged S&P 500 – Direxion Daily S&P 500 Bull 3X Shares (SPXL) – Up 17.1%

Small-Caps – Direxion Daily Small Cap Bull 3X Shares (TNA) – Up 14.5%