The U.S. stock market faces a critical week ahead, with a series of corporate earnings reports, key economic data releases, and potential global trade developments poised to influence market sentiment. As the S&P 500 looks to maintain its recent rebound, investors are watching closely for signs of a sustained recovery or a potential pullback.

Key Market Events to Watch:
1. Corporate Earnings

The week will see Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) report earnings, with both tech giants expected to provide crucial insights into the health of the sector and the broader economy. The outcome of these reports will likely have a significant impact on investor sentiment and the direction of the market.

2. U.S. Economic Data

U.S. Employment Report: A crucial gauge of the labor market’s strength.

Q1 Economic Growth: The first-quarter GDP data will give investors a snapshot of the broader economic picture.

Inflation Update: A report on inflation will give clues about pricing pressures and the Federal Reserve’s potential response.

Trade Developments: The Wild Card
The ongoing U.S.-China trade tensions remain a major source of volatility, with new tariff announcements or negotiations threatening to shake up the market. While recent signs of easing in trade tensions have lifted market sentiment, uncertainty remains.

Recent Developments:

President Trump has paused several tariffs, which sparked a rally in stocks earlier this month.

The possibility of a compromise on tariffs has supported the recent rally, but market volatility could spike if negative news on trade emerges.

Quote from Michael Mullaney (Boston Partners):

“There seems to be some potential for compromise on the tariff situation, which has supported the recent rally. Stocks will remain sensitive to the news flow that day – if it’s positive on tariffs, the market goes up. If it’s negative on tariffs, the market goes down.”

Market Outlook
The S&P 500 has gained some ground in recent days, recovering about half of its previous losses, but it remains approximately 10% below its record highs set earlier this year. The upcoming week will test whether this rebound can continue, or if global trade uncertainties and economic data will again cause the market to stall.
Investors should brace for volatile swings, as any new trade developments or economic surprises could either fuel a rally or spark a sharp sell-off.