Wall Street on Edge | Tech Earnings and Inflation Data Collide – Week of April 27

Dive into the market analysis for the upcoming week of April 27, 2025 and the week’s key economic data. Stay ahead with expert insights and forecasts.

Apr 27, 2025

Market Report

Markets snapped back strongly this week, as the S&P 500 surged 4.6%, the Nasdaq jumped 6.7%, and the Dow added 2.5%. The S&P 500 officially exited correction territory, climbing nearly 11% off its April lows.

What Happened?

Rough Start:
The week opened with a sharp sell-off on Monday as concerns surfaced that President Trump was exploring ways to remove Fed Chair Jerome Powell. Meanwhile, warnings from China about retaliatory trade moves fueled uncertainty.
Momentum Shift:
Sentiment quickly turned midweek as President Trump clarified he would not remove Powell and suggested a softer approach toward China in trade talks. Short-covering, contrarian buying, and hopes for less aggressive trade policy sparked a sharp rebound.
Mega-Cap Strength:
Mega-cap tech stocks led the way, with the Vanguard Mega Cap Growth ETF (MGK) up 7.4%. Tesla (TSLA) soared 18.1% following earnings,
TSLA Chart
and Alphabet (GOOG) gained 6.8%.
GOOGL Chart
The tech, consumer discretionary, and communication services sectors all posted outsized gains.
Supportive Treasuries:
Falling Treasury yields added fuel to the rally. The 10-year note yield fell six basis points to 4.27%, providing additional support for equities.
Mixed Economic Data:
Durable goods orders came in much stronger than expected, jobless claims remained low, and consumer sentiment improved slightly, although the housing market continued to show signs of strain.

Weekly Market Heatmap

Weekly Sector Performance

Market Health

Based on our Market Internals, the market continues to be in a Sell Mode.
Sell Mode is when a weak market repeatedly fails to break out due to insufficient buying strength based on several internals.

While headline indexes have been volatile, internal market strength is quietly improving. Breadth is stabilizing, momentum is turning more positive, and leadership is starting to broaden, resembling the early stages of past recoveries.

Broader Market Analysis

All four major U.S. equity ETFs — SPY (S&P 500), QQQ (Nasdaq 100), IWM (Russell 2000), and MDY (S&P MidCap 400) — are showing signs of early-stage recoveries off their April lows, with constructive rebounds developing across market caps. Each ETF has reclaimed short-term moving averages with improving volume trends, although they remain within broader downtrend channels. SPY has rallied approximately +14% off its lows, QQQ +17%, IWM +13%, and MDY +13%, signaling growing risk appetite across both growth and value segments. Relative volume spikes on the upswings suggest aggressive dip-buying interest rather than forced short-covering. While longer-term downtrends are still intact, the synchronized rebound across large-cap, tech-heavy, small-cap, and mid-cap indexes points to broadening internal strength — a notable shift from the prior risk-off environment.

Looking Ahead to the Upcoming Week

The upcoming week is packed with critical economic catalysts that could drive major market moves:

Key Economic Events to Watch:

Tuesday, April 29:

9:00am ET — S&P/Case-Shiller Home Price Index (y/y):
A key read on housing market strength amid rising mortgage rates.
10:00am ET — JOLTS Job Openings + CB Consumer Confidence:
Labor market tightness and consumer resilience will be front and center.

Wednesday, April 30:

8:15am ET — ADP Non-Farm Employment Change
8:30am ET — Advance Q1 GDP, Employment Cost Index, GDP Price Index
Big-picture growth, inflation, and wage pressure updates — heavy impact potential.
10:00am ET — Core PCE Price Index & Pending Home Sales
Fed’s preferred inflation gauge (Core PCE) could move rate expectations sharply.

Thursday, May 1:

8:30am ET — Weekly Unemployment Claims
9:45am ET — Final Manufacturing PMI
10:00am ET — ISM Manufacturing PMI + Prices Paid
A key pulse check on the industrial economy and inflation at the factory level.

Friday, May 2:

8:30am ET — Non-Farm Payrolls + Average Hourly Earnings + Unemployment Rate
The all-important jobs report: hiring trends + wage inflation = rate cut or no cut?

📌 Takeaway:
Growth, inflation, and labor data are stacked back-to-back — setting up a potential volatility spike as markets react to any surprises.

Earnings Highlights:

Monday:
- Domino’s Pizza (DPZ) before open
- Waste Management (WM), Cadence Design (CDNS), NXP Semiconductors (NXPI), and Nucor (NUE) after close
Tuesday:
- Before open: UPS (UPS), Coca-Cola (KO), Pfizer (PFE), GM (GM), Spotify (SPOT), SoFi (SOFI), Altria (MO)
- After close: Visa (V), Starbucks (SBUX), Booking Holdings (BKNG), Snap (SNAP), and First Solar (FSLR)
Wednesday:
- Before open: Caterpillar (CAT), ADP (ADP), Garmin (GRMN), Wingstop (WING), Humana (HUM)
- After close: Microsoft (MSFT), Meta Platforms (META), Robinhood (HOOD), Qualcomm (QCOM), and Western Digital (WDC)
Thursday:
- Before open: Eli Lilly (LLY), Mastercard (MA), CVS Health (CVS), Moderna (MRNA), Estee Lauder (EL)
- After close: Amazon (AMZN), Apple (AAPL), Atlassian (TEAM), Roku (ROKU), Twilio (TWLO)
Friday:
- Before open: ExxonMobil (XOM), Chevron (CVX), Shell (SHEL), Cigna (CI), T. Rowe Price (TROW), Eaton (ETN), Dupont (DD)
📌 Takeaway:
Mega-cap tech (Microsoft, Meta, Amazon, Apple) dominates the midweek focus, while energy and healthcare giants (Exxon, Chevron, Cigna) close out a pivotal week for Q2 earnings momentum.

X/Twitter

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