Stock Market Update – April 27, 2025 at 07:17 AM

Warren Buffett’s Berkshire Hathaway continues to outperform the market, with shares having returned 17% year-to-date, compared to the S&P 500 index being down 6%. Experts suggest that some of this success can be attributed to the large amount of cash Buffett has at his disposal. Despite market volatility since President Trump’s inauguration, Berkshire Hathaway has performed very well, largely outperforming the S&P 500.

Recent recovery in the S&P 500 has seen the index recover half of its total decline, with the prediction of favorable implications for market performance over the next 6 to 12 months. This is based on factors like market breadth and a pattern of unusually large daily gains.

Elon Musk’s xAI Holdings is engaged in discussions to raise about $20 billion in funding, which would value the company at over $120 billion. While the exact figure has not yet been finalized, the artificial intelligence startup is anticipating a considerable capital boost in the near future.

Accusations of potential “pay to play” corruption have been leveled against President Donald Trump after an offer of exclusive presidential access to top investors in his $TRUMP token. Senators Adam Schiff and Elizabeth Warren are calling for an ethics investigation into whether Trump has violated federal ethics rules.

Amid the possible prospect of tariff-related price hikes, some consumers are choosing to delay certain purchases, while others are rushing to buy items such as cars and technology products. This reflects the uncertainty among consumers as they await further developments in Trump’s trade policy. Auto sales, for example, saw a significant surge after Trump confirmed the tariffs, and retailers also note some accelerated orders for durable goods.

The major US stock indices ended a volatile week on a positive note, with the S&P 500 posting a gain of more than 4% for the week, and the Nasdaq Composite and Dow Jones Industrial Average seeing rises of nearly 7% and more than 2%, respectively. The volatility has largely been driven by investors’ reactions to the latest developments regarding President Donald Trump’s tariffs.

Overbought stocks highlighted by CNBC Pro’s stock screener tool include VeriSign and Netflix, which could be due for a pullback if the market remains volatile. VeriSign’s RSI reached 70.45 after it rose 8% on Friday following better-than-expected Q1 revenue and the initiation of a cash dividend. Netflix’s RSI stood at 72.18 after the stock climbed more than 13% in the past week on the back of strong Q1 results.

Bristol Myers Squibb and UnitedHealth Group were the only two oversold names this week, with Bristol Myers falling nearly 3% and UnitedHealth losing almost 8% over the period.

In other news, Alphabet’s autonomous vehicle unit, Waymo, is now delivering more than 250,000 paid robotaxi rides per week in the US, up from 200,000 in February. It continues to build partnerships with Uber, automakers, and operational and maintenance businesses, with an eye towards future growth.

For investors eyeing retirement and looking to preserve their nest egg amidst market volatility, financial experts suggest a strategy called “bond ladders”. This involves investing in bonds with staggered maturities to provide stability and potentially counter rising interest rates.

Traders remain cautious as mixed messaging around trade has added to uncertainty, with China stating there were no talks ongoing with the US over trade, contradicting the US’s earlier statements.