Weekly Stock Market Update | Dow, S&P 500, NASDAQ News – May 04, 2025 at 04:15 PM

The US stock market has made a significant recovery after President Trump’s “Liberation Day” tariffs announcement on April 2 resulted in a crash. Since then, the index has regained its losses and the S&P500 was up 0.3% from its closing level reached on April 2. Major contributors to this recovery include Trump’s decision to pause on tariffs followed by positive earnings from Big Tech companies.

Furthermore, on Friday, the S&P 500 advanced by 1.47% and closed at 5,686.67 after a surprisingly good nonfarm payrolls report for April, effectively defying recession fears. This marks the longest winning streak for the S&P 500 since November 2004. The Dow Jones benefited as well, jumping by 564.47 points or 1.39% and ending at 41,317.43. The Nasdaq Composite also experienced a rise of 1.51% and settled at 17,977.73.

Despite the recovery, investors are keen to see the outcomes of potential negotiations between the US and significant trading partners such as China, Japan, Mexico, Canada or the Eurozone. Any successful deals could solidify the stock market turnaround.

In terms of gainers and losers in the stock market, Apple (AAPL) slipped 3.7% after its fiscal second-quarter revenue didn’t meet analysts’ expectations, coupled with the company’s projection of an increase in costs due to tariffs. On the contrary, despite harboring under the pressure of tariffs, earnings reports suggest that the likes of Amazon (AMZN), Meta (META), Microsoft (MSFT), Chevron (CVX), Eli Lilly (LLY) and Coca-Cola (KO) who are due to declare their financial results, could potentially alter the tone in the market.

In summary, the stock market is demonstrating resilience despite the tariff pressures, driven primarily by the tech sector recovering and potential trade talks hinting at a feasible bounceback. But strategists warn that uncertainty around the policy and its potential impacts could lead to continued volatility in the market. The discussion of tariffs and the market’s reaction will be crucial in the upcoming weeks.

The U.S. stock market rallied back to its position on April 2nd, the day President Donald Trump announced steeper tariffs on U.S. trading partners, causing fears of a recession. Tumbling prices for U.S. government bonds and the sinking value of the U.S. dollar have prompted concerns about the U.S. Treasury losing its status as a safe haven for investors.

Last week, the S&P 500 rallied 1.5% for a ninth straight gain, and now stands more than 7% below its all-time high set earlier this year. The Dow Jones Industrial Average also made gains, climbing 300.03 points or 0.75%, to close at 40,527.62. The S&P 500 gained 0.58%, ending at 5,560.83, and the Nasdaq Composite advanced 0.55%, settling at 17,461.32.

Among the top gainers were Honeywell, as well as Microsoft and Meta, who delivered strong earnings that topped Wall Street’s expectations. Microsoft and Meta stock surged, ending up over 7% and 4%, respectively. But not all stocks fared well. Among the main losers were Amazon, General Motors and McDonald’s. Amazon’s shares went down after it announced a plan to show tariff surcharges on its site, General Motors was off by 0.6% after reassessing its future guidance due to tariff impacts, and McDonald’s shares fell more than 1% amid a slump in US sales.

Overall, the markets could easily fall again due to ongoing uncertainty about the impact Trump’s tariffs will ultimately have on the economy. Investors are waiting for further indications of policy change and trade progress.