Weekly Digest - April 28th
Markets are back in green this week, with the S&P 500 rallying approximately 7% from last Monday to this Monday. While recessionary fears and concerns over the economic impact of tariffs persist, market sentiment appears to have stabilised for now.
Technically, the S&P 500 is showing signs of breaking its recent downtrend, as the index has bounced off a key support level and is trending upward. This may indicate a shift toward a more bullish phase. However, a previous price gap remains unfilled, suggesting the possibility of a short-term retracement before further upside continuation.
Meanwhile, gold, typically a safe-haven asset and often inversely correlated with equities, appears to be forming a top, which may signal a potential pullback in the near term. Adding to the bullish tone, biotech stocks, many of which are early-stage and currently unprofitable, have seen strong gains, signalling a risk-on sentiment. This suggests investors are regaining confidence and showing a greater appetite for high-risk, high-reward opportunities.
Both short-term traders and long-term investors should monitor these developments closely as they could influence positioning and risk appetite in the coming sessions.
Top Gainers
Service Now’s (NYSE: NOW) share price jumped nearly 22% last week following strong Q1 earnings and a raised Q2 outlook. The company is benefiting from rising demand for its supply chain and government efficiency solutions as businesses respond to tariffs and agencies cut spending. Public sector revenue rose 30%, highlighting strong traction.
Tesla (NASDAQ: TSLA) is another top gainer, with the company’s shares surging by around 20%, its best week since November. Tesla benefited from new U.S. Department of Transportation regulations that ease reporting requirements for non-fatal Level 2 self-driving incidents, potentially improving public perception of its Autopilot system. Additionally, Elon Musk’s announcement to focus more on Tesla also reassured investors, despite weaker-than-expected earnings.
Palantir Technologies (NASDAQ: PLTR) gained roughly 27%, buoyed by bullish expectations ahead of Monday’s earnings report. The company continues to lead in the AI space, and its FedStart platform is being integrated into Google Cloud, boosting investor confidence.
Top Losers
Fiserv (NYSE: FI) shares declined by around 16% in the past after reporting Q1 earnings that fell short of expectations. The demand for both its payment processing unit and its point-of-sale (POS) arm was weak, sparking concerns from investors.
T-Mobile US (NYSE: TMUS) saw its stock fall by 8% following Q1 results that revealed slower postpaid customer growth and an uptick in churn rates. CEO Mike Sievert also cautioned that new tariffs on mobile phones could lead to higher costs for consumers, potentially dampening upgrade rates.
Stocks in Focus
With several major companies set to report earnings this week, the S&P 500 may experience increased volatility. Key companies to watch include Apple (NASDAQ: APPL), Microsoft (NASDAQ: MSFT), Meta (NASDAQ: META), Coca-Cola (NASDAQ: KO), Visa (NYSE: V), Berkshire Hathaway (NASDAQ: BRK-A), McDonald’s (NYSE: MCD), and MasterCard (NYSE: MA).
To assist investors in navigating the earnings season, the Earnings Overview page on Streamlined Finance offers a comprehensive dashboard for analysing upcoming and past earnings reports. Users can filter data by date or sector, track EPS surprises, and monitor revenue trends, enabling them to identify patterns and make well-informed investment decisions.