Market Rally Continues: S&P 500 and Nasdaq Push Higher on Tech Strength and Easing Trade Tensions
The stock market is extending its winning streak on Friday, April 25, 2025, as major indexes continue to recover from recent volatility triggered by trade tensions. Investors are showing renewed optimism following strong tech earnings and signals that the White House may soften its stance on China tariffs.
Major Indexes Continue Upward Momentum
As of midday trading, the S&P 500 is up 0.6% to 5,487, extending its weekly gain to nearly 4.5%. The tech-heavy Nasdaq Composite has climbed 0.8% to 17,182, putting it on track for a weekly gain exceeding 5.5%. Meanwhile, the Dow Jones Industrial Average is trading relatively flat at 39,925, but remains up more than 2% for the week.
This marks the fourth consecutive day of gains for the major indexes, representing a significant recovery from the sharp selloff earlier this month. The market rebound has been primarily driven by strong performances in the technology sector and easing concerns about the impact of tariffs on global trade.
Tech Sector Leads the Charge
Technology stocks continue to power the market higher, with Alphabet (GOOGL) shares surging approximately 5% following Thursday’s after-hours earnings report that beat analyst expectations on both revenue and profit.
However, not all tech news was positive. Intel (INTC) shares have dropped more than 5% after the chipmaker announced disappointing guidance and plans to cut operational and capital expenses.
Trade Tensions Showing Signs of Easing
A key driver of this week’s market rally has been indications that the Trump administration may be softening its stance on tariffs with China. Treasury Secretary Scott Bessent recently described the current tariff situation between the world’s two largest economies as “unsustainable,” suggesting a potential path toward de-escalation.
President Trump stated earlier this week that tariff rates on Chinese imports “will come down substantially. But it won’t be zero.” This statement has provided some relief to investors who had been concerned about the economic impact of the 145% tariffs on Chinese imports announced earlier this month.
However, uncertainty remains as China’s Ministry of Commerce spokesperson He Yadong revealed Thursday that there are currently no ongoing discussions on tariffs and called for the cancellation of “unilateral measures on China.”
Corporate Earnings in Focus
The first-quarter earnings season continues to show resilience despite economic uncertainties. According to data compiled by LSEG, approximately 73.9% of the 157 S&P 500 companies that have reported earnings so far have exceeded analyst expectations.
Today’s notable earnings reports include results from AutoNation, Colgate-Palmolive, and AbbVie, all of which released their quarterly figures before the opening bell.
Upcoming Market Events
Tech Earnings Take Center Stage Next Week
Next week promises to be pivotal for market direction as several “Magnificent Seven” technology companies are scheduled to report earnings. Meta Platforms (META) and Microsoft (MSFT) will release their results after market close on Wednesday, while Amazon (AMZN) and Apple (AAPL) are set to report after the bell on Thursday.
Anthony Saglimbene, chief market strategist at Ameriprise, noted: “I think heading into next week, it’s really going to be the big tech earnings that are going to really influence where the major averages go.”
Consumer Sentiment Data Due Today
Investors are also awaiting the release of April’s consumer sentiment data, scheduled for 10:00 a.m. ET today. Economists polled by Dow Jones expect the reading to remain unchanged from the previous month at 50.8.
Market Outlook Remains Cautious
Despite the recent rally, market analysts remain cautious about the long-term outlook. All three major indexes are still in the red year-to-date, with the S&P 500 down over 11% from its February record close. Deutsche Bank recently slashed its year-end target for the benchmark index to 6,150 from 7,000 previously.
Ulrike Hoffmann-Burchardi, chief investment officer of global equities at UBS Global Wealth Management, commented: “The market’s strong rebound reflects growing confidence that the most adverse outcome can be avoided, though upcoming news flow will likely continue to drive short-term swings.”
As the market navigates through this period of uncertainty, investors should remain vigilant and prepared for continued volatility. The upcoming earnings reports from major tech companies and developments in trade negotiations will likely determine the market’s direction in the coming weeks.
