Wall Street posted modest gains on Monday as investors braced for a crucial week packed with Big Tech earnings, economic indicators, and further developments on global trade.
The S&P 500 rose by 0.06% to close at 5,528.75, marking its fifth consecutive winning day. The Dow Jones Industrial Average added 114 points, or 0.28%, to settle at 40,227.59. Meanwhile, the Nasdaq Composite dipped slightly, ending the session down 0.1% at 17,366.13.
Big Tech in focus as earnings loom
Attention is firmly on the “Magnificent Seven” tech stocks this week, with Amazon, Apple, Meta Platforms, and Microsoft all preparing to report earnings. Shares were mixed ahead of results — Apple and Meta closed up around 0.4%, while Microsoft slipped 0.2% and Amazon fell 0.7%.
So far this earnings season, 73% of reporting companies have beaten analysts’ estimates, just shy of the five-year average, though second-quarter outlooks are softening amid tariff uncertainty.
Trade tensions stir cautious sentiment
Trade developments remain in the spotlight after conflicting signals from Washington and Beijing. Treasury Secretary Scott Bessent reiterated Monday that it is up to China to de-escalate tariff tensions, describing current Chinese levies as “unsustainable.”
Bessent noted progress with other trading partners, hinting that a deal with India could be finalized soon. Despite political optimism, analysts at Morgan Stanley warned that without a comprehensive tariff rollback, markets could remain under pressure.
April volatility and key economic reports ahead
April has been a rocky month for markets. The S&P 500 is down more than 1% month-to-date, while the Dow is tracking a 4% monthly loss. The Nasdaq, helped by resilient tech stocks, is slightly higher for the month.
Looking ahead, investors are awaiting critical data, including Friday’s nonfarm payrolls report, first-quarter GDP numbers, and inflation readings, all of which could steer markets into May.
Commodities and the dollar
WTI crude is trading 1.76% lower at US$61.91 a barrel.
Spot gold is trading flat at US$3343.97 an ounce.
One Australian dollar is buying 64.32 US cents.
Futures
The SPI futures are pointing to a 15 point rise.