Market Recap – Monday, April 28, 2025
US Stocks Finish Mostly Higher Despite a Quiet Day
US stocks ended mostly higher on Thursday, continuing strong performance from earlier in the week. The Dow rose by 0.28%, the S&P 500 increased by 0.06%, and the Russell 2000 gained 0.41%. However, the Nasdaq dipped slightly by 0.10%, mainly due to some weakness in tech stocks. Overall, while the day was a bit quiet, the broader market held steady.
Which Sectors Did Well?
The day saw a mixed bag across different industries. Some sectors like insurance, biotech, hospitals, airlines, and telecom had a strong day. Stocks that had been shorted a lot also did well. On the other hand, tech stocks, especially Nvidia (NVDA), struggled. Nvidia dropped after news of potential competition from China. Other sectors like semiconductors (the chips used in technology) and software also faced some pressure.
Bond and Currency Movement
Bonds had a strong day, with yields (or interest rates on bonds) going down a bit. The dollar also weakened slightly by 0.5%, which helped gold rise by 1.5%. Oil prices dropped by 1.5%, as concerns over global energy prices continued to weigh on the market.
What's Going On with the Economy and Earnings?
Not much new news came out about the economy, but investors were still keeping an eye on the ongoing trade tensions between the US and China. The Dallas Fed Index, which tracks manufacturing activity, came in below expectations, pointing to a slowdown in business activity. The government also announced it will be borrowing more money in the next few months. Investors are waiting for important reports next week, such as jobs data and the first look at the economy’s performance in the first quarter.
As for companies, some saw big gains, like Plug Power (PLUG), which jumped 25% after raising its revenue forecast. CG Oncology (CGON) also gained 25% thanks to positive news from a clinical trial. On the flip side, Nvidia dropped by 2.1% because of news that China’s Huawei might be developing a competing AI chip.
Here’s Our Take: Stay Calm and Stay Diversified
The market is still figuring out the effects of trade tensions and economic uncertainty. While some industries, like healthcare, telecom, and insurance, are doing well, tech companies are facing more challenges. As we get more economic data and earnings reports in the coming days, we’ll have a better idea of what’s ahead.
For long-term investors, it’s important to stay patient. Companies in sectors like healthcare, insurance, and telecom might offer more stability in these uncertain times. If you’re invested in tech stocks, be ready for some ups and downs, but know that tech still has a lot of growth potential in the long run. For short-term investors, there may be opportunities to pick up stocks that are benefiting from current news, but it’s also wise to be cautious about the risks, especially in the tech sector and trade-related industries. Make sure your portfolio is balanced and don’t get too caught up in the daily ups and downs of the market.