Complete Market OverviewMarket Performance: Indexes Show Resilience Despite Economic Contraction
The U.S. stock market showed mixed performance on Wednesday, April 30, 2025, as investors digested a slew of economic data and awaited key earnings reports from tech giants. The S&P 500 slipped 0.51% in early trading, continuing its volatile April performance, while the tech-heavy Nasdaq lost 0.66%. The Dow Jones Industrial Average bucked the trend, adding 300 points or 0.75%, extending its winning streak to seven consecutive sessions.
Today’s market activity comes after the Commerce Department released its advance estimate showing the U.S. economy contracted by 0.3% in the first quarter of 2025, marking the first GDP decline in three years. This figure fell below economists’ expectations of 0.4% growth and represents a significant slowdown from the 2.4% expansion recorded in Q4 2024.
Inflation Cools as Consumer Spending Surges
In a separate report, the Personal Consumption Expenditures (PCE) price index—the Federal Reserve’s preferred inflation gauge—rose 2.3% in March from a year earlier, down from February’s 2.7% increase. On a monthly basis, prices were unchanged, showing significant progress toward the Fed’s 2% target.
Consumer spending surged 0.7% in March, the largest monthly increase in over two years, as Americans rushed to make purchases ahead of President Trump’s sweeping tariff implementations. Energy prices fell 2.7% for the month, helping to offset a 0.5% increase in food prices.
Tariff Negotiations Boost Market Sentiment
The market’s resilience in recent days has been partly attributed to positive developments on the trade front. Commerce Secretary Howard Lutnick indicated that the White House is close to announcing a trade deal, while President Trump stated that tariff negotiations with India are “coming along great.”
Despite April’s rocky start following Trump’s “reciprocal” tariff announcement on April 2, the major averages have gradually narrowed their monthly losses. The S&P 500, which briefly entered bear market territory on April 7, is now down just 0.9% for the month, while the Nasdaq has managed to gain 0.9%.
Big Tech Earnings in Focus
All eyes are on Meta Platforms (META) and Microsoft (MSFT), which will report their first-quarter earnings after the closing bell today. These results from two of the “Magnificent Seven” tech giants will provide crucial insights into the health of the technology sector amid ongoing tariff concerns.
Wall Street expects both companies to set new records in revenue and earnings. Analysts project Microsoft to report $68.4 billion in revenue and $3.22 earnings per share, representing 11% and 10% year-over-year growth, respectively. Meta is expected to bring in $41.4 billion in revenue and $5.23 EPS, reflecting 14% sales growth and 11% profit expansion.
Investors will be particularly focused on two key issues: the level of capital expenditures for AI development and forward guidance. Many companies have pulled their guidance due to uncertainty over tariffs and trade negotiations, making it difficult to value stocks accurately.
Looking Ahead: More Earnings and Economic Data
The earnings onslaught will continue tomorrow when Amazon (AMZN) and Apple (AAPL) report their quarterly results. These reports, combined with today’s economic data, will help investors gauge the overall health of the economy and the potential impact of tariffs on corporate America.
Technically, the market has been performing well but is now approaching areas of overhead resistance. With major news events on the horizon, conditions are ripe for potential “sell the news” reactions, though strong support levels may attract dip buyers if pullbacks occur.
As April draws to a close, investors remain cautiously optimistic despite economic headwinds, with the market’s resilience in the face of tariff uncertainty and slowing growth suggesting underlying strength in the U.S. economy.