Welcome back to Weekly Market Update! Buckle up because this past week, the markets threw us curve ball after curve ball—yet somehow managed to end in the green across the board. From stellar tech earnings to whispers of potential monetary easing and renewed trade optimism, there was a lot driving the action. However, peel back the layers, and familiar worries about stubborn inflation and slowing global growth are still very much present.

Let’s unpack the week’s key moves region by region and spotlight what’s coming next.

United States: Tech Powers Ahead

The U.S. markets had a powerful week:

• S&P 500 up 4.6%

• Nasdaq up 6.7%

• Dow Jones up 2.5%

Tech led the way with the S&P 500 tech sector jumping nearly 8% fueled by stellar earnings from tech giants. However, beneath the excitement, softer economic data surfaced:

• S&P Global Flash PMI dipped to a 16-month low, driven by services sector weakness.

• University of Michigan consumer sentiment declined for a fourth straight month, with inflation concerns lingering.

In short, while tech soared, traditional sectors signaled slowing momentum.

Europe: Relief Rally Amid Fragile Fundamentals

European markets rallied:

• STOXX Europe 600 up 2.77%

• DAX, CAC 40, and FTSE 100 all posted strong gains

The main driver was easing trade tensions. But Germany’s revised 2025 GDP forecast to zero growth raised alarms. ECB’s chief economist maintained a cautious tone, acknowledging growing risks. Meanwhile, Eurozone PMI slipped to 50.1, barely above contraction territory.

United Kingdom: Mixed Signals

The FTSE 100 gained 1.69% with a surprise retail sales jump of 0.4% month-over-month in March. However, GfK consumer confidence weakened again, highlighting persistent anxieties about the cost of living and energy prices.

Japan: Inflation Challenges Surface

Japan’s Nikkei 225 and TOPIX rose around 2.7–2.8%, driven by global optimism. However, Tokyo’s core CPI jumped to 3.4% year-over-year—the highest in two years. This complicates the Bank of Japan’s careful policy balancing act. Meanwhile, new government support measures for industries hit by tariffs underline ongoing external pressures.

China: Stimulus Hopes Build

Chinese markets posted modest gains:

• Shanghai Composite and CSI 300 rose slightly

• Hang Seng Index climbed 2.8%

The key theme was anticipation of more stimulus, following pledges from policymakers. However, concrete actions have yet to materialize, and the full economic drag from U.S. tariffs looms large.

Looking Ahead: April 28–May 2 Preview

United States

• Tuesday: JOLTS job openings, Case-Shiller Home Prices, Consumer Confidence

• Wednesday: Q1 GDP (first estimate), ADP private payrolls

• Thursday: PCE Price Index, ISM Manufacturing PMI, Pending Home Sales

• Friday: Non-Farm Payrolls and Unemployment Rate (April), Factory Orders

Europe

• Tuesday: Final Eurozone Consumer Confidence (April)

• Wednesday: Preliminary Eurozone Q1 GDP, Flash CPI (April)

• Friday: UK Nationwide House Prices (April), German Retail Sales (March)

Japan

• Tuesday: Showa Day (markets closed)

• Wednesday: Preliminary Industrial Production (March), Retail Sales (March)

• Thursday: BoJ Policy Meeting Summary

• Friday: Unemployment Rate (March), Consumer Confidence Index (April)

China

• Tuesday: Official Manufacturing and Non-Manufacturing PMI (April)

• Wednesday: Caixin Manufacturing PMI (April)

Conclusion

This past week’s rally, particularly in tech, masks growing underlying risks. Whether it’s inflation, slowing services activity, fragile European growth, or stimulus uncertainty in China, the path forward is filled with crosscurrents. A data-heavy week ahead could shift market narratives sharply.

FAQs

1. What fueled the strong rally in U.S. markets? Stellar tech earnings, easing trade tensions, and monetary policy speculation drove gains.

2. Is Europe’s economic situation improving? Not really—despite stock rallies, underlying data like Germany’s zero growth forecast and weak PMI signal fragility.

3. Why is inflation in Japan a concern? Rising inflation complicates the Bank of Japan’s ability to maintain ultra-loose monetary policy.

4. What are investors awaiting in China? Markets are hoping for concrete stimulus measures to offset the economic drag from U.S. tariffs.

5. Which U.S. data releases are most important next week? Q1 GDP, the PCE inflation report, and April’s jobs report are the key indicators to watch.

Hashtags

#GlobalMarkets #TechEarnings #InflationWatch #CentralBanks #USGDP #MarketUpdate #ChinaStimulus #ECB #DeepDive #GlobalEconomy