To The Moon

Markets Rally Despite Tariff Tensions

Rally

US stocks wrapped up a strong week with another positive day, powered by tech strength and resilient earnings:

• Dow Jones: +20 points (+0.05%)

• $S&P 500(.SPX)$ : +0.7%

• $NASDAQ(.IXIC)$ : +1.3%

Weekly performance:

• S&P 500: +4.6%

• Nasdaq Composite: +6.7%

The Nasdaq just posted its best week since January, despite tariff headlines threatening to spoil the mood.

Earnings Shielding Markets — For Now

• $Alphabet(GOOG)$ strong report (+1.7% Friday) helped ease tech sector nerves.

• The company’s Search, YouTube subscriptions, and Google Play businesses drove revenue beats — with no mention of tariffs on the call, which soothed investors.

Margins holding steady:

• FactSet estimates S&P 500 Q1 operating margins at 12.4%, slightly down from Q4 but above the 5-year average (11.7%).

FactSet

Tariff Risk: Still Simmering

• President Trump said Friday he’s unlikely to extend the 90-day tariff delay.

• However, the Wall Street Journal reported the White House is developing a streamlined global negotiation framework, hinting at possible de-escalation tactics.

Macro warning signs:

Consumer

• Consumer sentiment dropped to one of the lowest readings on record.

• Long-term inflation expectations are now at their highest since 1991.

• Economists are increasingly seeing a coin-flip chance of a self-induced recession.

Trump’s approval rating has slid to 45% according to NYT polling, reflecting public concern over tariff-driven inflation and executive overreach.

Other Markets: Dollar Falls, Treasuries Rally

• A US dollar gauge is on pace for its worst first-100-day performance during any presidency since Nixon.

• Treasuries rallied, signaling that investors remain cautious and are hedging for further macro uncertainty.

Looking Ahead: Huge Earnings and Macro Week

Next week is packed with earnings and critical economic data:

Major reports:

• Monday: Domino’s Pizza

• Tuesday: Coca-Cola, Visa

• Wednesday: $Meta Platforms, Inc.(META)$ , $Microsoft(MSFT)$

• Thursday: Amazon.com, $Apple(AAPL)$ , Eli Lilly, Mastercard

• Friday: Chevron, Exxon Mobil

Key economic data:

• Wednesday: Q1 GDP Growth + PCE Inflation

• Friday: April Jobs Report

All eyes on how economic data shapes expectations ahead of the FOMC meeting May 6-7.

Investor Takeaway: Stay Nimble, Stay Selective

• Earnings are carrying markets — but sentiment is fragile.

• Tariff news could cause sharp swings, especially if rhetoric worsens.

• Tech leadership remains critical — Alphabet’s results suggest selective Big Tech can still outperform.

• Maintain flexibility in allocations: Overweight quality growth, but have defensive hedges in place.

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This summary is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making investment decisions.