Wall Street moved carefully on Monday as traders prepared for a wave of earnings reports and critical economic releases. The S&P 500 edged higher to notch its fifth consecutive gain, while the Dow advanced and the Nasdaq posted a slight decline. Big Tech names were volatile ahead of their earnings, with Amazon and Microsoft under pressure while Apple and Meta managed modest gains. Meanwhile, ongoing uncertainty around US-China trade negotiations kept sentiment cautious, even as officials signalled incremental progress on other fronts. April’s final stretch remains volatile, with markets navigating tariff concerns and pivotal updates on growth and inflation.

Key Takeaways:

  • Dow Climbs Ahead of Big Tech Earnings: The Dow Jones Industrial Average rose 114.09 points, or 0.28%, to finish at 40,227.59 as traders positioned ahead of major earnings releases and critical economic updates. Investors awaited reports from Apple, Amazon, Meta Platforms, and Microsoft later this week.
  • S&P 500 Extends Win Streak to Five Days: The S&P 500 inched up 0.06% to close at 5,528.75, posting a fifth consecutive session of gains. Although the index has rebounded from April lows, it remains more than 1% lower for the month and about 10% beneath its February record highs.
  • Nasdaq Slips as Tech Stocks Trade Choppy: The Nasdaq Composite dipped 0.1% to settle at 17,366.13, weighed by declines in Amazon and Microsoft. Big Tech shares saw uneven action ahead of key earnings, with Apple and Meta Platforms managing modest gains while Microsoft slipped 0.2% and Amazon lost 0.7% during the session.
  • European Stocks Advance with Focus on Economic Data: The Stoxx 600 index closed higher by 0.5%, supported by gains in travel and banking shares as investors prepared for a wave of earnings and macroeconomic releases. London’s FTSE 100 edged up 0.02% to 8,417.34, marking its best winning streak in over five years despite a mixed retail sales report showing weaker May expectations. France’s CAC 40 rose 0.50%, boosted by anticipation ahead of key GDP and inflation figures due Wednesday. Italy’s FTSE MIB climbed 0.31%, while Germany’s DAX added 0.11%, as traders watched for signals on Eurozone growth momentum. Earnings from major players like HSBC, BP, Deutsche Bank, and Shell are also set to shape sentiment this week across the region.
  • Asia-Pacific Markets Mixed as China Growth Promises Weighed: Mainland China’s CSI 300 fell 0.14% to 3,781.61 as Beijing’s new support measures failed to spark buying interest. Hong Kong’s Hang Seng Index closed flat at 21,973.24 as uncertainty over additional stimulus weighed on sentiment. Japan’s Nikkei 225 rose 0.38% to 35,839.99 and South Korea’s Kospi edged up 0.1% to 2,548.86 as broader regional risk appetite improved. India’s Nifty 50 jumped 1.23%, while the BSE Sensex gained 1.31%, driven by growing confidence in domestic growth prospects. Australia’s S&P/ASX 200 finished 0.36% higher at 7,997.10 despite headwinds from global trade tensions.
  • Oil Prices Drop Sharply as Demand Fears Mount: Brent crude futures slid $1.06, or 1.59%, to close at $65.81 a barrel, while US West Texas Intermediate fell $1.01, or 1.60%, to $62.01. Oil prices retreated for a third straight session as escalating trade tensions between the US and China fuelled concerns about weakening global demand. Analysts noted that demand risks have now overtaken geopolitical factors like US-Iran negotiations and OPEC+ tensions in influencing oil markets. Even with small gains earlier last week, Brent crude posted a weekly decline of over 1%, reflecting broader fears about slowing consumption.
  • Treasury Yields Fall as Economic Data Deluge Approaches: The 10-year Treasury yield declined more than 5 basis points to 4.21%, while the 2-year yield dropped over 7 basis points to 3.685%. Bond markets strengthened as traders braced for a heavy calendar of economic releases this week, including first-quarter GDP, March personal income and spending, the PCE inflation report, and April’s nonfarm payrolls. 

FX Today:

  • EUR/USD Holds Bullish Momentum Above Key Moving Averages: EUR/USD closed at 1.1422, rising 0.53% on the day as the pair maintained strong positioning above its 50-day, 100-day, and 200-day SMAs. Price action shows consolidation just below recent highs, with the 50-day SMA at 1.0907 continuing to slope upward, supporting the broader uptrend. Immediate support lies around 1.1300–1.1350, while further downside protection remains near 1.1100. On the upside, a clean break above 1.1500 could open the way toward 1.1650. Overall momentum remains bullish unless EUR/USD falls decisively below the 1.1300 area and its 50-day SMA.
  • GBP/USD Maintains Strong Uptrend Above Moving Averages: GBP/USD settled at 1.3433, rising 0.90% on the day and extending its bullish trajectory. The pair trades comfortably above its 50-day, 100-day, and 200-day SMAs, reinforcing a healthy uptrend structure. Resistance is seen between 1.3450–1.3500, while initial support lies at 1.3300 and stronger support at the 50-day SMA near 1.2950. Price action remains robust, with shallow pullbacks quickly attracting buyers. Unless a sharp daily close occurs below 1.2950, the path of least resistance continues to favour further upside toward 1.3600.
  • AUD/USD Eyes Key 200-Day SMA Breakout: AUD/USD closed at 0.6433, advancing 0.61% as the recovery from April’s lows continued. The pair trades firmly above its 50-day and 100-day SMAs, now challenging resistance near the 200-day SMA at 0.6466. While short-term momentum has shifted bullish, the longer-term downtrend remains intact until a daily close above the 200-day SMA confirms a breakout. Immediate support is located at 0.6350, followed by stronger dynamic support at 0.6299 where the 50-day SMA resides. A sustained move above 0.6470 could spark further gains toward 0.6550 and higher.
  • USD/CHF Remains Weak Below Major Resistance Levels: USD/CHF closed at 0.8205, falling 0.78% and continuing to trade well below all major moving averages. The pair faces persistent selling pressure, with the 50-day SMA at 0.8667 acting as key dynamic resistance. Immediate support sits near 0.8100, and a break lower could expose the psychological 0.8000 zone. To alleviate the bearish tone, a decisive close above 0.8400–0.8500 would be needed, although broader technical signals still favour sellers in the near term.
  • USD/JPY Under Pressure Beneath Sloping Moving Averages: USD/JPY finished at 142.08, declining 1.08% for the session as bearish momentum remained intact. The pair trades decisively below its 50-day, 100-day, and 200-day SMAs, highlighting a strong downward bias. Immediate support is located around the 141.00–141.50 region, with further downside risk toward 139.00 if broken. Any recovery attempt would first need to retake the 147.39 50-day SMA, but overall, the trend favours further losses unless a significant technical shift occurs.
  • Gold Consolidates Above Key Support, Uptrend Intact: Gold closed at $3349, advancing by 0.93%. The 50-day SMA is at $3059, the 100-day SMA at $2888, and the 200-day SMA at $2734. The 50-day SMA is sharply rising, highlighting strong bullish momentum. Price remains well above all moving averages, with recent consolidation occurring just under the $3400 level. Immediate support lies near $3300–$3320, while resistance can be found around $3500. Despite some recent sideways action, the trend remains upward as long as gold holds above the 50-day SMA. Only a daily close below $3050 would signal a potential change in direction. 

Market Movers:

  • Plug Power Surges After Secured Debenture Deal: Shares of Plug Power jumped 26% after the hydrogen fuel cell company announced a deal to issue up to $525 million in secured debentures. The company also issued first-quarter guidance slightly ahead of analyst expectations.
  • Nio Jumps on New Model Launch Hopes: Nio shares surged 7% after Citi placed the electric vehicle maker on a 30-day upside catalyst watch. Analyst Jeff Chung highlighted expectations for earlier-than-anticipated launches of new models, which could boost investor sentiment.
  • ADMA Biologics Climbs on FDA Approval: ADMA Biologics rose 12% after securing FDA approval for its innovative plasma yield enhancement production process. The new method is expected to increase plasma production yields by approximately 20%, boosting future output efficiency.
  • Nvidia Falls as Huawei Prepares AI Chip Launch: Nvidia shares declined 2% following a Wall Street Journal report that Huawei Technologies plans to soon test a new artificial intelligence processor. 
  • Peloton Advances on Analyst Upgrade: Peloton stock gained 5% after Truist upgraded the fitness company to a buy rating from hold. The firm cited cleaned-up financials and improving fundamentals as key reasons for a potential recovery after years of restructuring efforts.
  • Boeing Rallies on Positive Analyst Outlook: Boeing shares rose 2% after Bernstein upgraded the stock to outperform from market perform. The analyst cited significant progress in addressing scrutiny and supply chain issues.
  • BankUnited Slips on Weak Net Interest Income: BankUnited shares fell 2% after reporting lower-than-expected net interest income of $233.1 million, missing the $239.9 million consensus. 

Markets kicked off a pivotal week with slight optimism as investors prepared for a flood of earnings and economic reports that could set the tone for May. While the S&P 500 managed to extend its winning streak, trading remained choppy amid lingering concerns over tariffs and global growth. Big Tech results and key data on GDP, inflation, and the labour market are expected to dominate sentiment in the coming days. Developments on the trade front, particularly regarding negotiations with China and India, will also remain in sharp focus. With volatility still elevated and critical catalysts ahead, traders are bracing for potentially larger moves as April draws to a close.