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S&P500, Nasdaq Composite slip ahead of tech earnings; Dow Jones adds 150 pts

Published on 28/04/2025 08:12 PM

U.S. stocks kicked off the week on a relatively muted note as investors braced for a flood of corporate earnings and key economic reports, while keeping a close eye on the latest developments in global trade discussions.

The S&P 500 hovered near the flatline while the Nasdaq Composite shed 0.24 percent ahead of big earnings. Meanwhile, the Dow Jones Industrial Average managed to climb 149 points, or 0.4%, offering a modest boost.

Also read: Leading Indian banks refrain from giving guidance on FY26 growth; first time in many years

Trade negotiations remained a key source of uncertainty. Treasury Secretary Scott Bessent offered few new details about the ongoing talks with China, instead placing the burden of progress on Beijing. Still, Bessent struck an optimistic tone regarding other global trade efforts, hinting that a deal with India could be finalised soon.

His remarks follow President Donald Trump’s comments last week, asserting that dialogue with China was active, pushing back against Chinese claims that there have been no negotiations at all.

Meanwhile, corporate earnings will dominate investor attention this week. More than 180 companies from the S&P 500 are set to report, including heavyweights Amazon, Apple, Meta Platforms, and Microsoft. Earnings from sectors such as financials, consumer staples, and healthcare — including Visa, Coca-Cola, and Eli Lilly — are also on deck.

: 'Military incursion by India is imminent,' says Pakistan amid tensions over Pahalgam terror attack

While the first-quarter earnings season has delivered fairly solid results, with about 73 percent of companies beating expectations, according to FactSet, that beat rate is slightly below the five-year average of 77 percent. At the same time, companies are issuing cautious forecasts, citing the impact of President Trump's tariff measures, leading analysts to trim their estimates for the coming quarters.

The market's recent volatility reflects the broader uncertainty. Stocks have swung sharply through April, reacting to shifts in tariff policy. So far this month, the S&P 500 has slipped more than 1 percent, the Dow has shed nearly 4 percent, and the Nasdaq Composite has eked out a 1 percent gain. Though the S&P 500 briefly dipped into bear market territory on April 7, it has since staged a partial recovery but remains unable to break through key technical resistance.

Investors will also be keeping a close watch on fresh economic data this week. Reports on employment, inflation, and growth will flow in, culminating in Friday's highly anticipated nonfarm payrolls report. Ahead of that, first-quarter GDP figures and the Fed’s preferred inflation measure are scheduled for release on Wednesday.

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