Stocks opened slightly higher on Monday as investors turned their focus toward a critical week packed with earnings from Big Tech giants and key economic data releases. Despite lingering concerns about tariffs and elevated Treasury yields, markets showed early signs of resilience.
At the opening bell, the S&P 500 rose 0.28%, the Dow Jones Industrial Average gained 0.45%, and the Nasdaq added 0.21%, reflecting cautious optimism across Wall Street. Meanwhile, Bitcoin (BTC) extended its recent rally, rising nearly 2% to trade above $95,000, and gold edged higher by 0.3%, hovering around $3,307 per ounce.
Tariffs Remain a Cloud Over Markets
The ongoing uncertainty surrounding tariffs, particularly in the context of U.S.-China trade relations, continues to weigh on investor sentiment. Although President Donald Trump’s recent comments hinting at easing pressure on Federal Reserve Chair Jerome Powell provided some market support last week, the broader trade landscape remains murky.
Jake Sherman, founder of Punchbowl News, told CNBC’s Squawk Box, “I think there is a quiet, bubbling frustration about the status of these negotiations and the status of tariffs,” highlighting the growing concerns within financial circles.
Treasury yields remained elevated on Monday, with the benchmark 10-year Treasury yield rising by 2 basis points to 4.29%, while the 2-year yield stood at 3.76%, reflecting sustained investor caution around interest rate trajectories.
Big Tech Earnings in Focus
This week’s main market catalysts are expected to be quarterly earnings from the so-called “Magnificent Seven” — a group that includes Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Meta (META). As investors brace for these critical updates, strong earnings reports could provide the momentum needed to extend the recent rally.
“Markets have rebounded very nicely off the lows,” said Stephanie Link, chief investment strategist at Hightower Advisors. “I think we can continue to rally if earnings continue to be good.”
The performance of Big Tech stocks will be especially important given their outsized influence on major indices and broader market sentiment.
Key Economic Data to Watch
Beyond corporate earnings, attention will also turn to economic indicators, particularly the release of the Personal Consumption Expenditures (PCE) price index the Federal Reserve’s preferred inflation gauge scheduled for Wednesday, April 30.
Investors will closely scrutinize the PCE data for any signs of inflation cooling or persisting, which could influence future Fed monetary policy decisions.
Outlook
While the market has shown impressive resilience in recent weeks, aided by easing fears over monetary policy tightening, this week’s mix of earnings results and economic data will be crucial in determining whether the rally can sustain its momentum.
With tariffs, inflation, and corporate profitability all in the spotlight, volatility could remain elevated in the days ahead.
