Big Tech Earnings Take Center Stage

The performance of the “Magnificent Seven” (M7) tech giants remains a key market driver. This week, investors will be laser-focused on earnings releases from four of these behemoths: Apple, Microsoft, Amazon, and Meta Platforms. While the M7’s influence on overall market direction may be debated,their earnings reports undoubtedly have the power to considerably impact market volatility. Consider that these companies represent a substantial portion of major market indices; therefore, any surprises, positive or negative, can trigger widespread reactions.

A barrage of Economic Data: Gauging the Health of the US Economy

Beyond corporate earnings, a series of critical economic indicators will provide insights into the current state of the US economy, particularly considering recent policy shifts. These data points will be crucial for investors trying to assess the impact of these policies and predict future economic trends.

key Economic Releases to Watch

• Personal Consumption Expenditure (PCE) Inflation: The Federal Reserve’s preferred inflation gauge,the PCE price index for March,will be released this week. Economists anticipate a potential easing, projecting a decrease from February’s 2.5% to around 2.2% year-over-year. This is a critical data point for assessing inflationary pressures and anticipating potential Fed policy responses.
• Q1 GDP Figures: The first estimate of Q1 GDP growth will be unveiled, offering an initial snapshot of economic performance during the first three months of the year. This release will be closely scrutinized for signs of economic slowdown or resilience.
• S&P CoreLogic Case-Shiller Home Price index: This index, considered a leading indicator of the US housing market, will provide an update on home price trends. Given the sensitivity of the housing market to interest rates and broader economic conditions, this release will be closely watched for signs of stabilization or further cooling.
• ISM Manufacturing Index: This index offers insights into the health of the manufacturing sector. It will be particularly relevant for understanding the impact of recent trade policies on US manufacturers, balancing the benefits of protectionism with the potential drawbacks of increased input costs.
• April Employment Data: The latest employment figures will shed light on the labor market’s strength. Investors will be looking for signs of continued job growth and wage pressures, which could influence the Fed’s monetary policy decisions. As of March 2025, the unemployment rate stood at 3.8%, according to the Bureau of Labor Statistics.

US-China Trade Negotiations: A Potential Turning Point?

Amidst the earnings and economic data, developments in US-China trade negotiations will also be closely monitored. Recent signals suggest a potential shift in stance, with both sides expressing cautious optimism about reaching a “Big deal.”

recently, the finance Minister Scott Bee Ship, who has recently emerged as a core of trade policy, is soon optimistic that the United States and China will reach ‘big Deal’.

the reversal of US semiconductor tariffs by China further fuels speculation that both nations are seeking common ground. A breakthrough in trade negotiations could provide a notable boost to market sentiment, possibly extending the previous week’s positive momentum. However, any setbacks or signs of renewed tensions could trigger renewed volatility.

Earnings Calendar Highlights

Here’s a snapshot of key earnings releases scheduled for the week:

• April 28th: Domino’s Pizza
• April 29th: PayPal, Corning, UPS, Coca-Cola
• april 30th: Microsoft, Meta Platforms
• May 1st: Apple, Amazon
• May 2nd: Exxon Mobil, Chevron, berkshire Hathaway (potentially May 3rd)