The S&P500 rebounded over the last five trading days, thanks to a strong performance in the tech sector.
Bonds and the U.S. dollar also rose.
If measured from the trough on Apr. 21, the S&P 500 bounce was about 8.22 per cent.
Short-term bounce or longer term recovery?
However, trade war tensions are still high amid conflicting signals about progress in U.S. president Donald Trump’s trade negotiations, compounded by sticky inflation, which are putting a dampener on consumer sentiment.
Tech rally
Alphabet's first quarter results beat forecasts, which saw its stock go up by 7 per cent and sparked a US$70 billion stock buyback.
ServiceNow contributed to the tech sector rally, soaring 22 per cent on stellar earnings.
Consumer discretionary stocks climbed 7.4 per cent, with Tesla leading the pack, thanks to CEO Elon Musk's newfound resolve to steer the company after first quarter shortcomings.
Netflix's also posted first quarter positive results, which pushed the communication services up by 6.4 per cent.
Consumer staples, though, were down, owing to Kimberly-Clark's disappointing revenue and lower 2025 earnings guidance.
Tech sector's outsized influence
Technology stocks buoying the market amid geopolitical and economic uncertainties will put the focus on upcoming tech earnings from Microsoft, Meta, and Apple.
April's employment data along with other key U.S. economic statistics will help gauge the health of the U.S. economy and the longevity of any recovery.
Top photos via Unsplash
