Stock Market Update | Dow, S&P 500, NASDAQ News – April 30, 2025 at 03:16 PM

Financial advisory firm BlackRock outlined the potential benefits of investors diversifying beyond the traditional 60/40 stock/bond portfolio given the recent market turbulence. The firm suggested a deliberate diversification strategy, which could involve focusing on fixed-income maturities in the 3- to 7-year range to ensure steady income, and adding diversifiers such as gold and liquid alternatives with a lower correlation to the S&P 500.

The recent market performance showed significant fluctuations, with the Dow experiencing a rise of 0.35%, making this its seventh consecutive day of growth, despite the S&P 500 falling by 0.15%. This inconsistency is believed to be due to the expectations of sudden swings caused by President Donald Trump’s reciprocal tariffs and subsequent pauses. Market fluctuations were also propelled by the Commerce Department’s data showing the US economy contracted in the first quarter, the first contraction since 2022. The Federal Reserve’s inflation gauge helped to calm the markets despite elevated inflation due to Trump’s tariffs.

Starbucks shares dropped by 7% after the company reported weaker-than-expected Q2 2025 results. CEO Brian Niccol, a turnaround specialist, continues to implement strategies to turn the company around. While acknowledging that earnings would lag in the near term, he stated that driving growth and customer satisfaction would result in improved financial performance.

Ahead of Amazon’s upcoming earnings report, President Donald Trump criticized the company’s reported plan to display on its site how his new tariffs on top US trading partners are driving up prices for consumers. Amazon denied implementing such changes.

Recent reports indicate fears of the U.S. entering a recession or stagflation. However, some experts argue that the reports suggesting a recession underway are premature and advise that investors should wait for second and third readings of economic data before jumping to conclusions.

U.S. stocks have plunged due to weak economic data hinting at a potential recession. Disappointing quarters from companies such as Starbucks have added to market anxieties. Nvidia, a significant player in the artificial intelligence (AI) industry, saw its stock falling over 3%, following the announcement of weaker-than-expected results from Super Micro and news about potential alterations to the Biden-era AI dissemination rules by the Trump administration. Jim Cramer, the host of CNBC’s Mad Money, had previously trimmed investments in Nvidia preparing for such unfavorable conditions.

Microsoft, on the other hand, has reported impressive quarterly results, exceeding consensus estimates. The company’s earnings per share stood at $3.46 against the expected $3.22, and the revenue was $70.07 billion, almost $2 billion more than expected. The news led to a more than 6% increase in Microsoft shares in after-hours trading. The company’s Azure cloud unit and its Productivity and Business Processes segment (containing Office software subscriptions and LinkedIn) contributed significantly to the revenue. However, investors remain cautious due to President Trump’s recent tariffs’ potential impact on future results.

Nvidia received a rare ‘sell’ rating from Seaport Research Partners, suggesting that the AI demand upside for Nvidia might have been accounted for in the current stock price. Seaport predicts an over 8% downturn in Nvidia’s shares from its closing price of $109.02 on Tuesday. Despite impressive performance in previous years, Nvidia shares have declined by more than 21% in 2025 and remain about 31% below the record peak in January. The Seaport analyst mentioned macroeconomic concerns, including high tariffs and an imminent economic recession, as some of the contributing factors to the stock’s underperformance. Other factors include increasing competition and questions regarding the utility of AI, as significant investments in this field have not realized soaring profits.