Weekly Economic Pulse: For the Week of April 27, 2025
IN THIS WEEK’S RECAP: EASING TRADE RHETORIC, SOUR CONSUMERS
WEEKLY ECONOMIC UPDATE
Presented by The PensionmarkMeridien Team, April 28, 2025
MARKET RECAP
Last week brought strength in technology stocks via earnings and some tariff rhetoric relaxation, making it an opportune time to share an overview of what happened and what’s ahead. Read on for a bite-sized summary of what you should know.
WEEKLY STOCK INDEX PERFORMANCE
Major U.S. stock indexes made a strong comeback last week, with tech earnings setting a positive tone after a volatile start on Monday. The S&P 500 rose by 4.59%1, the Dow Jones Industrial Average increased by 2.48%2 and the NASDAQ 100 soared by 6.43%.3
TECH STRENGTH & EARNINGS
Technology stocks led the charge, buoyed by impressive earnings from Alphabet (Google). According to data4 released by FactSet on April 25th, 36% of S&P 500 companies had reported results, with 73% surpassing earnings per share expectations and 64% exceeding revenue forecasts. So far, the blended year-over-year earnings growth rate for Q1 2025 stands at 10.1%. If this rate holds after all S&P 500 companies report, it will mark the second consecutive quarter of double-digit earnings growth for the index.
EASING TARIFF RHETORIC
The easing5 of tariff rhetoric also played a role in boosting market sentiment. On Friday, reports revealed that China quietly rolled back tariffs on U.S. semiconductors, reducing pressure on the tech sector and contributing to the rally in tech stocks.
TIP OF THE WEEK
Periodically review your cash holdings to ensure you have an adequate emergency fund.
The amount you need depends on several personal factors, but a common rule of thumb is to set aside 3 to 6 months’ worth of living expenses based on your current lifestyle.
CONSUMER SENTIMENT SOURS FURTHER
On the consumer front, sentiment continued its downward trend, with the University of Michigan’s data showing April’s consumer sentiment at one of the lowest levels on record. This marks the fourth consecutive month of declining sentiment, though the result of 52.2 was better than the 50.8 that analysts had forecasted.
APRIL IS FINANCIAL LITERACY MONTH
In today’s shifting global landscape and evolving economic environment, financial literacy is more essential than ever for preserving and growing wealth. Equipping yourself and future generations with strong financial knowledge is key to maintaining confidence, resilience, and long-term success.
-QUOTE OF THE WEEK-
“Do not save what is left after spending; instead spend what is left after saving.”
Warren Buffett
THE WEEK AHEAD
Looking ahead, earnings season is in full swing, and this week brings the eagerly awaited results from the “Magnificent 7” — including Microsoft, Amazon, Meta, and Apple. It’s shaping up to be one of the biggest weeks6 of the earnings season. Additionally, we’ll see several key economic reports, including quarterly Gross Domestic Product (GDP) data, the Fed’s preferred inflation indicator, Core Personal Consumption Expenditures (PCE), and the monthly employment report on Friday.
That’s it for this week’s update! If you’d like to explore any of these topics further or have any other questions or needs as the week unfolds, don’t hesitate to reach out. We are always here as a resource for you.
STAY AHEAD
We’re here to help you navigate what’s ahead. If you have any questions or would like to discuss how this week’s insights might apply to your situation, please don’t hesitate to reach out.
And if you know someone who would benefit from this newsletter, We’d be happy to connect with them. With their permission, we’ll ensure they receive future editions.
Advisory services offered by Pensionmark Financial Group, LLC. Securities offered by Pensionmark Securities, LLC, member FINRA/SIPC. Pensionmark Financial Group, LLC is affiliated through common ownership with Pensionmark Securities, LLC. Please consult your financial professional for additional information. This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.
Citations:
1. Trading View, April 27, 2025
2. Trading View, April 27, 2025
3. Trading View, April 27, 2025
4. Factset, April 25, 2025
5. Reuters, April 24, 2025
6. Kiplinger, April 25, 2025