38. Weekly Market Recap: Key Movements & Insights
🔥 Historic Market Rally: Tariff Relief, Strong Jobs, and Tech Earnings Drive Gains
Stocks Rally for Ninth Straight Session as Tariff Hopes, Jobs Data, and Big Tech Earnings Drive Optimism
Since tariff-induced volatility hit a low on April 8, the S&P 500 has surged 14%. This past week alone, the index gained 3%, marking its first nine-day winning streak since November 2004. The Dow also posted its first nine-day run since December 2023, closing up 564 points, or 1.39%, on Friday. The Nasdaq Composite rose 1.51%. While the S&P 500 has erased its losses since President Trump’s “reciprocal” tariffs announcement on April 2, the Dow remains about 2% below its early April level.
Three key factors drove the rally. First, investor sentiment toward tariffs improved as the Trump administration signaled a possible softening of trade policy, with China’s Commerce Ministry stating it is “currently evaluating” U.S. proposals for renewed talks. Second, strong earnings from Microsoft and Meta reassured investors about the resilience of corporate profits, especially in AI. Third, Friday’s jobs report showed the U.S. economy added 177,000 jobs in April, beating expectations of 135,000 and helping to ease recession fears, even as the prior month’s figure was revised sharply lower.
Energy prices continued to support stocks, with crude oil falling below $60 per barrel and WTI crude down 7.6% for the week. This decline in energy costs also weighed on recent oil company earnings. Meanwhile, bitcoin’s rally persisted, rising 3.4% for the week and reapproaching the $100,000 mark.
Policy Uncertainty and Economic Data
Despite the upbeat jobs data, policy uncertainty remains high. The Q1 GDP report showed the U.S. economy contracted for the first time since 2022, and ADP data revealed a significant slowdown in private sector hiring. The CNN Fear and Greed Index briefly touched “neutral” before slipping back into “fear,” reflecting ongoing anxiety about the economic outlook and the future of U.S. trade policy.
Investors are closely watching the 90-day pause on tariffs (excluding China) and any progress in U.S.-China trade negotiations. China’s subtle shift in tone on trade and its willingness to address U.S. concerns about fentanyl were seen as positive signals, but the path forward remains uncertain.
President Trump renewed calls for the Federal Reserve to cut interest rates, posting on social media: “NO INFLATION, THE FED SHOULD LOWER ITS RATE!!!” However, the strong jobs report led traders to dial back expectations for a June rate cut, with the CME FedWatch tool showing a 36.6% chance, down from 55% the day before. Barclays and Goldman Sachs now expect the first cut in July. The 10-year Treasury yield rose above 4.3%, while the U.S. dollar index fell 0.3%.
Big Tech and AI Lead the Charge
Earnings from Microsoft and Meta were a bright spot, with both companies posting strong results and highlighting continued investment in artificial intelligence. Meta shares gained 4.2% on Thursday and 4.3% on Friday, while Microsoft surged 7.6% on Thursday and 2.3% on Friday. However, Apple disappointed with guidance indicating tariffs could cost the company $900 million this quarter, sending its shares down 3.74% on Friday. Amazon posted "healthy" first-quarter results but offered mixed guidance, causing shares to edge lower. If the S&P 500 closes higher again on Monday, it will mark the first 10-day winning streak since the 1990s, according to S&P Dow Jones Indices.
The Week Ahead: Fed Decision, Key Earnings, and More Data
Looking forward, the May 7 FOMC meeting is the week’s main event, with investors eager for clues on the Fed’s next move. Tariff developments and trade negotiations will remain in focus, alongside a busy earnings calendar featuring Palantir, Disney, Shopify, and more. Key economic data include ISM Services, international trade, jobless claims, and productivity figures.
Upcoming Key Events:
Monday, May 5:
Earnings: Palantir (PLTR), Vertex Pharmaceuticals Inc (VRTX)
Economic Data: ISM Services PMI
Tuesday, May 6:
Earnings: Shopify (SHOP), Anheuser-Busch (BUD), Advanced Micro Devices, Inc. (AMD),
Economic Data: API Crude Oil Stock Change
Wednesday, May 7:
Earnings: Walt Disney (DIS), Novo Nordisk A/S (NVO), Uber Technologies, Inc. (UBER), Arm Holdings plc (ARM)
Economic Data: Fed Interest Rate Decision, Fed Press Conference
Thursday, May 8:
Earnings: Mercadolibre (MELI), Toyota Motor Corporation (7203), Nintendo Co., Ltd. (7974)
Economic Data: Initial Jobless Claims, Nonfarm Productivity QoQ, Unit Labour Costs QoQ
Friday, May 9:
Earnings: Enbridge Inc. (ENB), Recruit Holdings Co., Ltd. (6098), Mitsubishi Heavy Industries, Ltd. (7011)
Economic Data: None
Here are the most pertinent earnings details.
Due to the volume of reports during the earnings season, it is not feasible to include every single one in our calendar.
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Index Insights: How Major Benchmarks Performed Last Week
Price>MA10: 🟢
Price>MA20: 🟢
MA10>MA20: 🟢
Market Trend*:🔴
Trend Signal: 🟢
*When Price and Moving Averages are all green, the Market Trend will also be green
Price>MA10: 🟢
Price>MA20: 🟢
MA10>MA20: 🟢
Market Trend: 🔴
Trend Signal: 🟢
Price>MA10: 🟢
Price>MA20: 🟢
MA10>MA20: 🔴
Market Trend: 🔴
Trend Signal: 🟢
Sector Performance: Winners and Losers from Last Week
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Winners
💻 Technology (+4.29%)
Leading all sectors this week, Technology posted the strongest performance with a 4.29% gain. The sector’s growth reflects robust investor confidence, likely fueled by innovation momentum and strong earnings reports.
🏭 Industrials (+4.17%)
Industrials followed closely, with a 4.17% increase. This performance highlights ongoing strength in manufacturing and infrastructure, pointing to continued recovery and expansion in global industrial activity.
📱 Communication Services (+4.00%)
Communication Services delivered solid returns, gaining 4.00%. The sector benefited from increased demand for digital content and connectivity, showcasing its resilience and relevance in a tech-driven market.
💰 Financial (+3.10%)
Financials experienced healthy gains of 3.10%, indicating growing confidence in banking and financial services. Improved economic outlooks and stable interest rates may have contributed to the sector’s positive momentum.
🏢 Real Estate (+2.87%)
Real Estate posted a 2.87% gain, reflecting cautious optimism in property markets and investment activity.
🛍️ Consumer Cyclical (+2.14%)
Consumer Cyclical stocks saw a 2.14% increase, suggesting renewed optimism in discretionary spending and retail, possibly driven by positive consumer sentiment and economic data.
⚡ Utilities (+1.75%)
Utilities gained 1.75%, supported by their defensive characteristics and consistent demand, especially during periods of market uncertainty.
🛡️ Consumer Defensive (+1.50%)
Consumer Defensive stocks rose by 1.50%, reflecting steady demand for essential goods and services.
🏥 Healthcare (+1.44%)
Healthcare stocks advanced by 1.44%, maintaining their reputation as a stable and defensive sector. The gains suggest ongoing demand for healthcare services and products.
🧱 Basic Materials (+1.21%)
Basic Materials saw a 1.21% increase, likely driven by steady demand for commodities and positive market sentiment around resource-based industries.
Losers
🛢️ Energy (-0.38%)
Energy was the only sector to post a decline, falling by 0.38%. This performance may reflect fluctuations in commodity prices and reduced demand for energy resources.
🌟 Weekly Industry Leaders 🌟
🏗️ Building Products & Equipment (+9.9%)
Leading all industries this week, Building Products & Equipment posted outstanding gains of 9.9%. The sector’s surge reflects strong demand for construction materials and infrastructure development.
💻 Software - Infrastructure (+9.1%)
Software - Infrastructure followed closely with a 9.1% increase, driven by robust demand for cloud computing, enterprise software, and digital transformation initiatives.
🔩 Metal Fabrication (+8.41%)
Metal Fabrication saw significant growth, gaining 8.41%. This performance highlights strength in industrial production and infrastructure projects.
✈️ Airlines (+8.11%)
Airlines posted impressive gains of 8.11%, likely fueled by increased travel demand and improving operational efficiencies.
🖥️ Computer Hardware (+7.94%)
Computer Hardware companies advanced by 7.94%, benefiting from new product launches, enterprise upgrades, and increased technology spending.
⚡ Utilities - Independent Power Producers (+7.77%)
Independent Power Producers in the Utilities sector gained 7.77%, reflecting growing investment in energy production and supportive policy environments.
🏗️ Engineering & Construction (+7.32%)
Engineering & Construction stocks rose by 7.32%, driven by increased infrastructure spending and modernization projects.
🚛 Trucking (+7.27%)
Trucking companies posted a 7.27% gain, supported by strong demand for logistics and transportation services.
🌱 Utilities - Renewable (+7.11%)
Renewable Utilities delivered a solid performance, gaining 7.11%. This reflects growing investment in clean energy and sustainable power generation.
🎓 Education & Training Services (+6.84%)
Education & Training Services rounded out the top performers with a 6.84% increase, likely driven by rising demand for professional development and online learning platforms.
🚀 Top Market Gainers: Strategic Moves, Mergers, and Clinical Breakthroughs Drive Explosive Growth
KIDZ Classover Holdings Inc (+515.74%) 💰
Classover Holdings skyrocketed after announcing a $400 million equity purchase facility agreement. The company plans to launch a Solana-based (SOL) treasury strategy, fueling investor optimism about its innovative approach to blockchain integration.
ABVE Above Foods Ingredients Inc (+229.41%) 🌱
Above Foods Ingredients surged as the company and Palm Global Technologies advanced their strategic merger. With definitive agreements expected to be signed imminently, the market is buzzing with anticipation of synergies between the two entities.
RGLS Regulus Therapeutics Inc (+182.25%) 🧬
Regulus Therapeutics soared after Novartis announced plans to acquire the company for up to $1.7 billion. The acquisition highlights the value of Regulus’ RNA-based therapeutics pipeline, driving significant investor interest.
PLRZ Polyrizon Ltd (+176.47%) 🌸
Polyrizon reported successful safety results for its PL-14 allergy blocker in a human nasal tissue model. The positive study results have bolstered confidence in the company’s innovative approach to allergy prevention.
RGC Regencell Bioscience Holdings Ltd (+111.10%) 🌿
Regencell Bioscience saw a dramatic surge, reportedly due to promising clinical trial results for its herbal formula targeting ADHD and ASD in Malaysia. However, skepticism remains as the source of this news is unreliable, and the rise is more likely due to technical trading factors.
🔻 Biggest Decliners: Dilution, Scams, and Missed Expectations Hammer Valuations
EJH E-Home Household Service Holdings Ltd (-82.16%) 💸
E-Home Household Service Holdings repeated its 2024 pump-and-dump scheme, artificially inflating its stock price before dumping shares onto retail investors. The pattern has become all too familiar, leaving investors wary.
CDTG CDT Environmental Technology Investment (-71.20%) 🚩
Another week, another suspected Chinese scam. CDT Environmental Technology Investment followed the classic pump-and-dump playbook, with investors left holding the bag after a rapid price spike and subsequent collapse.
MULN Mullen Automotive Inc (-55.17%) 🚗
Mullen Automotive continues to cement its reputation as one of the most dilutive companies in Wall Street history. Despite repeated warnings, the company remains listed, baffling market observers.
CABO Cable One Inc (-43.30%) 📉
Cable One Inc. reported a decline in Q1 2025 revenues, with residential data revenues dropping 4.5% year-over-year. The company faced unusual churn events, including billing migration issues and weather-related disruptions, which negatively impacted customer numbers.
WGS GeneDx Holdings Corp (-40.09%) 🧬
GeneDx disappointed investors despite beating Q1 expectations. The diagnostics company reported $87.1 million in sales, a 10% beat over forecasts, but far below the 20% growth investors had come to expect. Sequential declines in test volumes further dampened sentiment, leading to a sharp selloff.
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