Wall Street closed out the week on a positive note, with the S&P 500 rising for a fourth consecutive session. The index finished up 0.74% on Friday, notching a 4.6% gain for the week. The Nasdaq outperformed, climbing 1.26% on the day and 6.7% for the week, buoyed by strength in major tech stocks. The Dow Jones Industrial Average lagged but still eked out a small gain, ending just 20 points higher.
Markets continue to navigate uncertainty around US trade policy, with President Donald Trump sending mixed signals on tariffs. Fresh comments suggested a willingness to escalate duties to between 20% and 50% over the next year, even as officials hint at new trade deals. Investors are cautiously optimistic that the worst of the tariff disruption may be behind them, but volatility remains high.
Tech earnings lead the rebound
Corporate earnings have provided some relief, with results so far beating expectations by around 7%. Alphabet reported strong first-quarter results, lifting shares by 1.5%, while Tesla jumped nearly 10% on its report. Nvidia and Meta Platforms also posted significant gains. However, forward guidance has been more cautious, with many companies lowering projections for the second half of the year. Analysts now expect first-quarter earnings to be the strongest of 2025.
Commodities and the dollar
WTI crude is trading 0.24% higher at US$63.17 a barrel.
Spot gold is trading 0.19% higher at US$3,325.88 an ounce.
One Australian dollar is buying 63.97 US cents.
Australia
The Consumer Price Index, due this week, will be crucial in shaping expectations for the Reserve Bank’s next move on interest rates. A fall in core inflation could see the RBA bring rates below its 2–3% target band for the first time in four years.
SPI futures are pointing to a 2 point rise.
