Weekly Market Update

Weekly Web Post for the Grand Protector

Summary:

The past week has been marked by a rebound in stock prices following the worst start to a presidency in decades. Despite this, the US economy contracted in the first quarter for the first time in three years, with real GDP decreasing by 0.3%. This contraction is attributed to an increase in imports and domestic investment, as businesses adjusted to President Trump's tariff push.

Key Points:
• The S&P 500 has risen 11.5% since its April 8 trough, while the Nasdaq Composite has gained 14.4%.
• The US economy contracted by 0.3% in the first quarter, with an increase in imports and domestic investment contributing to the decline.
• President Trump's trade war has driven fears of an economic slowdown, particularly for Big Tech companies like Apple and Amazon.
• China has signaled that it is evaluating US officials' recent overtures on trade talks to assess how serious Trump's administration is about a shift in policy stance.

Earnings Reports:
• Microsoft and Meta posted better-than-expected earnings, easing fears about Big Tech's prospects amid President Trump's tariff upheaval.
• Apple warned of a $900 million tariff headwind this quarter and cut its share buyback program by $10 billion, sending its stock lower despite its quarterly earnings beat.

Macro Data:
• The US economy added 177,000 nonfarm payrolls in April, more than the 138,000 expected by economists.
• China's commerce ministry said it is evaluating US officials' recent overtures on trade talks to assess how serious Trump's administration is about a shift in policy stance.