SWS Stock Market Insights 05.05.25

📈 Weekly Market Recap – May 4, 2025

U.S. equities extended their rally for a ninth consecutive session, marking the longest winning streak since 2004. Strong tech earnings, easing tariff concerns, and a robust jobs report contributed to the positive momentum.

🔢 Major Index Performance

These gains reflect the indices' performance over the past week.

🏆 Market Drivers

🖥️ Tech Sector Strength

• Earnings from Microsoft and Meta Platforms exceeded expectations, bolstering investor confidence in AI and cloud computing sectors.

• Chipmakers also saw gains, driven by strong demand for AI processors.

🏗️ Infrastructure and Industrials

• Industrials and infrastructure-related stocks led the rally, reflecting optimism in economic resilience.

📉 Oil Prices Decline

• WTI crude oil prices fell to $58.92 per barrel, the lowest in four years, due to concerns over global demand.

📊 Economic Indicators

💼 Employment

• The U.S. economy added 177,000 jobs in April, surpassing expectations and keeping the unemployment rate steady at 4.2%.

• Health & Social Assistance led job growth, adding 58,200 jobs.

📉 GDP Contraction

• First-quarter GDP contracted by 0.3%, primarily due to a surge in imports ahead of anticipated tariffs.

🧭 Looking Ahead

Federal Reserve Meeting

• The upcoming FOMC meeting on May 6-7 is expected to keep interest rates steady at 4.25–4.50%, despite calls for cuts.

Earnings Reports

• Key companies like Palantir Technologies are set to report earnings, which could influence market direction.

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