Investors ended the week on a positive note, encouraged by easing trade tensions and a powerful rally in major technology stocks. While uncertainty around tariffs remained a source of volatility, growing optimism about corporate earnings helped lift sentiment across equity markets. Technology shares led the charge, boosting broader indexes and reviving risk appetite. Despite mixed signals from policymakers, markets showed resilience as traders looked ahead to a busy earnings calendar. Next week’s tech earnings and further developments on global trade are expected to drive the next moves.

Key Takeaways:

  • Dow Edges Higher Despite Trade Confusion: The Dow Jones Industrial Average rose 0.05%, or 20 points, to close at 40,113.50, managing a small gain amid a turbulent backdrop of tariff uncertainty. For the week, the blue-chip index advanced 2.5%, underperforming broader benchmarks but still posting its second positive week out of the last three.
  • S&P 500 Extends Winning Streak and Logs Strong Weekly Gain: The S&P 500 climbed 0.74% to end at 5,525.21 on Friday, marking a fourth consecutive day of gains. The benchmark surged 4.6% for the week as investors rotated back into risk assets, led by strong performances from technology giants.
  • Nasdaq Outperforms as Tech Stocks Power Rally: The Nasdaq Composite jumped 1.26% to 17,282.94, fuelled by outsized moves in Tesla, Nvidia, and Meta Platforms. For the week, the tech-heavy index surged 6.7%, easily outpacing the Dow and S&P 500 as investors bet on continued strength in the sector.
  • Europe Stocks Rise on Earnings Strength Despite Trade Worries: European markets finished higher on Friday, overcoming trade-related uncertainty as corporate earnings across the region lifted sentiment. The Stoxx 600 index added 0.35%, while London’s FTSE 100 climbed 1.69% for the week, marking its best winning streak since 2019. France’s CAC 40 advanced 0.5% to 7,536, recording a fourth consecutive session of gains, and Germany’s DAX gained 0.8% to end at 22,242.5. Italy’s FTSE MIB surged 1.5% to a three-week high of 37,348. Fresh economic data also supported the rally, with UK retail sales unexpectedly rising by 0.4% in March as clothing and outdoor retailers benefited from warmer weather. 
  • Asia Markets Mixed as Trade Sentiment Improves: Asia-Pacific markets mostly climbed on Friday as investors weighed signs of a possible thaw in US-China trade tensions. Japan’s Nikkei 225 rallied 1.9% to 35,705.74, while the Topix added 1.37% to 2,628.03, supported by strong tech sector performance. South Korea’s Kospi gained 0.95%, and the Kosdaq rose 0.5% as trade talks between Seoul and Washington reportedly made progress. Hong Kong’s Hang Seng Index added 0.24% to 21,963.09, while mainland China’s CSI 300 closed flat at 3,786.99 after mixed reports on tariff waivers. However, India’s Nifty 50 and BSE Sensex fell sharply, down 1.27% and 1.35% respectively, as regional tensions between New Delhi and Islamabad escalated. Australian markets remained closed for a public holiday.
  • Oil Prices Fall for the Week amid Oversupply Concerns: Oil futures ended slightly higher on Friday but posted weekly losses due to lingering worries over excess supply and global demand uncertainty. Brent crude rose 32 cents to settle at $66.87 per barrel, while WTI crude gained 23 cents to finish at $63.02. Despite the daily gains, Brent fell more than 1% for the week and WTI dropped over 2%. Traders pointed to oversupply signals from OPEC+ and renewed trade tensions as key headwinds weighing on sentiment. 
  • Treasury Yields Slide as Trade Tensions Weigh on Outlook: The 10-year Treasury yield fell more than 4 basis points to 4.262% on Friday, as investors absorbed fresh comments from President Trump about future tariff levels. The 2-year yield also slipped nearly 3 basis points to 3.764%. Recent volatility in yields has mirrored swings in trade sentiment, with the benchmark 10-year yield fluctuating sharply throughout April. 

FX Today:

  • EUR/USD Dips Slightly but Holds Uptrend Above 1.1300: EUR/USD slipped 0.22% to close at 1.1363, continuing its mild pullback from recent highs near 1.1600. Despite the softness, the pair remains structurally strong, trading well above its 50-day SMA at 1.0889, the 100-day SMA at 1.0643, and the 200-day SMA at 1.0767. Support is now located between 1.1300 and 1.1200, while resistance sits at 1.1500, with a close above 1.1550 needed to resume the uptrend. The overall momentum remains positive, and as long as price holds above the breakout zone around 1.1200, the bullish bias is intact. A deeper pullback would only be confirmed if EUR/USD breaks below the rising 50-day SMA.
  • GBP/USD Consolidates Gains, Supported Above 1.3200: GBP/USD dipped 0.14% to settle at 1.3320 after briefly testing 1.3340 earlier in the session. The pair remains in a solid uptrend above its 50-day SMA at 1.2934, 100-day SMA at 1.2705, and 200-day SMA at 1.2838, all of which are now sloping higher. Immediate resistance is seen near 1.3430, with a potential target at 1.3600 if bullish momentum picks up again. On the downside, initial support lies at 1.3200, followed by stronger demand near 1.3000. As long as price stays above the 50-day SMA, dips are likely to be viewed as buying opportunities.
  • USD/JPY Extends Rebound but Remains in Bearish Pattern: USD/JPY rose 0.74% to close at 143.62, logging a second consecutive gain as the pair attempts to recover from lows near 139.00. The rebound faces critical resistance around the 145.00–147.00 zone, where the declining 50-day SMA currently sits. Longer-term moving averages, including the 100-day at 151.32 and the 200-day at 150.10, are still sloping downward, reinforcing the broader bearish bias. Immediate support is located at 142.50, followed by 141.00. A failure to reclaim the 147.00 area would likely result in a resumption of the downtrend toward 140.00 or lower.
  • EUR/JPY Breaks Resistance and Tests 200-Day SMA: EUR/JPY climbed 0.51% to close at 163.17, breaking above its short-term range resistance of 162.00–162.50 and testing the 200-day SMA at 161.51 for the first time since January. The breakout follows a series of higher lows since mid-March, suggesting strengthening bullish momentum. Price remains comfortably above both the 50-day SMA at 160.61 and the 100-day SMA at 160.90. A daily close above the 200-day SMA would confirm a bullish trend resumption, with upside targets at 165.00 and beyond. Immediate support lies near 162.00, and a reversal back below 160.50 would negate the breakout.
  • NZD/USD Pulls Back After Failing to Break 0.6000: NZD/USD edged lower by 0.54% to settle at 0.5965, slipping after a sharp rally from below 0.5600 over the past two weeks. The pair faces stiff resistance at the 0.6000 psychological level, reinforced by the flat 200-day SMA at 0.5886. Despite today’s setback, NZD/USD remains above its rising 50-day SMA at 0.5759 and the 100-day SMA at 0.5715, reflecting improving near-term momentum. Key support sits between 0.5900 and 0.5930, and as long as this zone holds, the broader bullish bias remains intact. A breakout above 0.6000 would likely trigger the next leg higher toward 0.6100.
  • Gold Retreats but Maintains Bullish Structure Above 3,280: Gold (XAU/USD) dropped 1.29% to close at 3,305.76, retracing from earlier highs near 3,370. Price remains well supported above the 50-day SMA at 3,049.50, while longer-term moving averages at 2,880.84 (100-day) and 2,729.77 (200-day) continue rising steeply. Near-term support is found between 3,280 and 3,300, while resistance remains strong around 3,370–3,400. The broader uptrend remains intact, although short-term momentum is cooling. A decisive breakout above 3,400 would reassert bullish control and open a path toward 3,500.

Market Movers:

  • Tesla Surges as Tech Stocks Power Higher: Tesla (TSLA) soared more than 9% on Friday, leading gains among major tech names after a volatile few weeks. The move helped lift broader market sentiment and contributed heavily to the Nasdaq’s outperformance.
  • Nvidia Rallies Amid Tech Strength: Nvidia (NVDA) climbed more than 4% on Friday as investors continued to bet on strong earnings growth from AI-related sectors. The rally added to a strong week for tech giants.
  • Alphabet Jumps on Strong Q1 Earnings: Alphabet (GOOGL) rose more than 1% after reporting first-quarter revenue ex-TAC of $76.49 billion, topping Wall Street expectations of $75.4 billion.
  • Charter Communications Soars After Earnings Beat: Charter Communications (CHTR) surged more than 11%, leading gains in both the S&P 500 and Nasdaq 100, after posting Q1 adjusted EBITDA of $5.80 billion, exceeding estimates.
  • T-Mobile US Sinks on Subscriber Miss: T-Mobile US (TMUS) tumbled more than 11%, leading Nasdaq 100 decliners, after reporting 495,000 new monthly phone subscribers in Q1, missing estimates of 507,000.
  • Intel Falls on Weak Revenue Forecast: Intel (INTC) dropped over 6% after issuing a disappointing Q2 revenue forecast between $11.2 billion and $12.4 billion, below Wall Street estimates.

Stocks finished the week on a strong note, boosted by a tech-led rally and easing trade tensions that helped offset lingering volatility concerns. The S&P 500 and Nasdaq posted impressive weekly gains, while the Dow managed a modest advance despite mixed messaging around tariffs. Optimism around corporate earnings, especially from major technology names, underpinned sentiment and encouraged investors to look through short-term uncertainties. However, the market remains sensitive to fresh developments on global trade, particularly between the US and China. Focus now shifts to a critical batch of earnings reports next week from major hyperscalers, which could set the tone for the next leg of market direction.