Markets opened the week on a steady note, with investors balancing recent gains against the anticipation of critical economic data releases. The S&P 500 edged up 0.1% to 5,528.75, while the Dow Jones Industrial Average rose 0.3% to 40,227.59. The Nasdaq Composite saw a slight decline of 0.1% to 17,366.13 .
This week's focus centers on the upcoming release of the U.S. Q1 GDP advance estimate, scheduled for Wednesday, April 30. Analysts anticipate a significant slowdown, with projections ranging from minimal growth to potential contraction. The Atlanta Fed's GDPNow model estimates a -2.5% annualized growth rate for Q1 2025 . Additionally, the Personal Consumption Expenditures (PCE) inflation data, a key indicator for the Federal Reserve, is also due on Wednesday, with the core PCE expected to remain around 2.8% year-over-year .
Trade tensions continue to influence market sentiment. The recent implementation of new tariffs by the U.S. has raised concerns about potential stagflation, with 61% of investors anticipating such an outcome . These developments have led to increased caution among investors, despite the resilience shown in recent market performances.
In Europe, markets have experienced volatility due to similar concerns. The Euro STOXX 600 index has seen fluctuations, reflecting investor apprehension over trade policies and their impact on economic growth .
Key Points to Watch This Week:
As the week unfolds, markets are likely to remain sensitive to incoming data and earnings results. With uncertainty still elevated around growth and inflation trends, investors may continue to favor a cautious and selective approach while awaiting clearer signals from the economy.
