Market Recap – Tuesday, April 29, 2025

US Stocks Close Higher Amid Trade News and Economic Data

Stocks finished higher on today, continuing a strong start to the week. The S&P 500 marked its sixth consecutive gain, while the broader market saw broad-based strength, particularly in consumer staples, pharmaceuticals, and insurance. However, certain sectors such as semiconductors and energy faced headwinds, with tech stocks like Nvidia underperforming due to concerns about competition from China. Meanwhile, investor sentiment was impacted by fresh economic data, showing declining consumer confidence and weaker job openings, highlighting concerns over the broader macroeconomic environment.

Trade Updates Impact Market Sentiment

The market’s positive movement was mainly driven by news around tariff relief for the auto industry, as President Trump’s administration moved to avoid stacking additional tariffs on auto imports. The US will also offer some offset on auto parts tariffs set to take effect next month. Although the news was largely anticipated, it did provide some relief to the sector. However, broader US-China trade tensions continue to be a focal point, with limited signs of easing in diplomatic relations. The market remains in “waiting mode,” with investors looking ahead to upcoming earnings reports and a busy week of macroeconomic data.

Economic Data Shows Softening Consumer Confidence

The latest consumer confidence data showed a significant drop in April, with the confidence index hitting its lowest level since spring 2020. The downturn was attributed to concerns about inflation and tariffs. Job openings also fell below expectations, dropping to 7.2 million in March, further pointing to a softer labor market. On a more positive note, home prices in major cities showed some resilience, outperforming expectations. This mixed data backdrop reflects the uncertainty currently shaping market sentiment.

Earnings Season Continues Amid Volatile Market Conditions

As earnings season continues, many companies are highlighting how they are managing tariff-related pressures. Key earnings reports today included stronger-than-expected results from Tenet Healthcare and Honeywell, which both benefited from robust demand in their respective sectors. Conversely, General Motors faced challenges amid global trade disruption and announced a suspension of its buyback program and a delay in its earnings call. Many companies have also been affected by macroeconomic uncertainty, including Brinker International and Spotify, which both saw downward pressure despite posting earnings beats.

Here’s Our Take

While stocks closed higher, driven in part by trade relief for the auto sector and strong corporate earnings, broader macroeconomic concerns continue to weigh on market sentiment. Consumer confidence is at a low point, job openings are shrinking, and trade tensions remain high, especially with China. For investors, the focus should remain on diversification, particularly with exposure to sectors that are more resilient in uncertain times, such as consumer staples, healthcare, and insurance. While big tech is facing headwinds, opportunities may still exist in defensive sectors and companies benefiting from tariff mitigation strategies. Keep a close eye on upcoming economic reports and earnings to gauge whether the market can sustain its upward momentum in the face of these challenges.