Global markets showed resilience this week, despite facing a series of mixed signals from corporate earnings, macroeconomic updates, and renewed trade uncertainties.

While the overall mood remained cautious, the ability of equities to hold steady highlights investor willingness to stay positioned — at least until the next round of key economic data.

In the U.S., the S&P 500 and Nasdaq edged higher, supported by solid earnings from major technology companies. Defensive sectors like healthcare and utilities also attracted attention, as investors favored quality and stability.

Meanwhile, the Dow Jones Industrial Average lagged slightly, reflecting pressure from weaker industrial and consumer goods earnings.

Across Europe, markets softened moderately. Strategists revised their expectations for the Stoxx 600 lower, citing concerns about slowing demand and the potential for prolonged trade tensions. European equities have outperformed U.S. stocks year-to-date, but sentiment is clearly cooling.

Key takeaways from this week:

• U.S. earnings mostly beat expectations, but management guidance stayed cautious.
• Trade tensions reemerged, particularly around U.S.–China relations, but did not trigger major volatility.
• European PMI readings showed continued weakness in manufacturing and services.
• Central banks maintained a "higher for longer" tone, with no immediate pivot in sight.

Looking Ahead: What’s Next

The upcoming week could prove decisive for markets.

Two major events are likely to drive sentiment:

• U.S. Q1 GDP (Advance Estimate): Expected to reveal whether economic growth is holding up under high interest rates and inflation pressures.
• PCE Inflation Data: The Fed’s preferred inflation measure will be released. A surprise in either direction could reset expectations for monetary policy this summer.

Investors will also continue to monitor corporate earnings, particularly from sectors more sensitive to consumer demand and credit conditions.

Markets held firm this week despite headline risks, showing that investor confidence remains steady for now. But next week’s economic data could change the mood fast, especially if GDP disappoints or inflation stays stubborn. In this environment, staying selective is key, with a focus on companies that show strong fundamentals, reliable cash flow, and real pricing power.

Disclaimer:

This content is for informational purposes only and does not constitute financial, investment, or professional advice. Always consult a licensed advisor before making financial decisions.

Financy Team

May 01, 2025