Dow and S&P 500 Manage Gains, Nasdaq Slips Ahead of Key Corporate Results
U.S. stock markets posted modest moves on Monday, as investors weighed cautious optimism on trade talks and prepared for a heavy week of earnings reports from America’s largest corporations.
The Dow Jones Industrial Average rose 114 points (+0.28%), while the S&P 500 added 3 points (+0.06%). In contrast, the NASDAQ Composite dipped by 17 points (-0.1%), ending a touch lower as tech stocks lagged.
Trade Hopes Support Sentiment
Markets found support from expectations that the U.S. might soon announce new trade deals, bolstering hopes for a global economic soft landing.
“There remains a lot of hope and hype about trade deals, and this might prevent a sharp slump in the SPX in the immediate term,” said Adam Crisafulli of Vital Knowledge in a morning note. “But the index is at the top-end of its trading range and shouldn’t be chased beyond ~5500.”
Encouraging comments from U.S. Treasury Secretary Scott Bessent also lifted spirits. In a CNBC interview, Bessent noted that several countries have submitted “very good” tariff proposals and that negotiations were progressing positively with major Asian trading partners, South Korea, India, and Japan.
Regarding China, Bessent emphasized that the door remains open for de-escalation, although the onus was now on Beijing to move talks forward.
Trump Administration Signals Softer Trade Stance
After years of heightened trade tensions, recent signs from the Trump administration suggest a willingness to ease the pressure, especially as global recession fears persist. Any formal breakthroughs in trade negotiations could serve as a significant catalyst for equities, particularly in manufacturing, technology, and export-sensitive sectors.
Earnings Season Focus: Apple, Microsoft, Amazon, Meta
Attention now turns to earnings reports from the so-called “Magnificent Seven” megacaps, with Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Meta Platforms (NASDAQ:META) set to report results this week.
These companies collectively represent a combined market value of nearly $20 trillion, and their performance could heavily influence broader market direction.
While first-quarter earnings and economic data have so far held up reasonably well, some analysts warn that the full impact of tariffs has not yet been reflected.
“The Q1 earnings season (and Q1 economic data) have been decent, but this is in part because the full effects of tariffs haven’t been felt – that will soon change,” Crisafulli added.
Market Outlook: Cautious Optimism
With equities trading near the upper end of their recent ranges and trade negotiations at a delicate stage, volatility could pick up later this quarter. Investors will be closely watching for any signs of a breakthrough — or fresh tensions — in U.S.-China relations, alongside the earnings momentum from megacap tech.
