US stocks weekly: Twists and turns

Discover Financial Services

25/04/2025 21:30

** S&P 500 .SPX rebounds 4.6% as Trump dials back threats to fire Fed Chair Powell and tariff tensions ease .N

** Dow .DJI adds 2.5%, Nasdaq Composite .IXIC surges 6.7%

** Indeed, week started off on the back foot, as it looked like the bear was stirring

** But then, IXIC breadth/momentum got a boost, and the SPX did something it hasn't done on the upside since Nov 2020

** Of note, at Mon intraday low, benchmark SPX index was down 17% from Feb 19 record close, ended Fri down 10% from that mark

** With this, U.S. 10-Year Treasury yield US10YT=RR declines back into the mid-4.20%s US/

** Nearly every sector vaults: Technology, Consumer Discretionary and Communication Services soar most, while just Consumer Staples falls on its face

** Tech .SPLRCT leaps 7.9%. ServiceNow NOW.N catapults after upbeat Q1 profit, helped by resilient AI-powered software demand. NOW notches 22% weekly gain

Intel INTC.O falls on Fri after downbeat current-qtr rev and profit forecast, while analysts expect trade war, competition to pose challenges. Still, INTC rises 6% on the week

Semiconductor index .SOX rallies ~11%

** Consumer Discretionary .SPLRCD jumps 7.4%. Tesla TSLA.O recharges as investors cheer Musk reducing time with DOGE, offsets Q1 rev miss. TSLA registers 18% weekly advance

** Communication Services .SPLRCL up 6.4%. Netflix NFLX.O climbs after co backs rev outlook, signals confidence it would weather any tariff-induced economic turbulence

Google parent Alphabet GOOGL.O rises after ad rev surpasses expectations, lifts other social media names

** Financials .SPSY higher by 3%. Capital One COF.N gains after Discover DFS.N deal approved by US bank regulators

For the week, S&P 500 banks index .SPXBK bounces 5.7%, and KBW regional banking index .KRX shoots up 4.6%

** Industrials .SPLRCI up 3%. Boeing BA.N ascends on smaller-than-expected loss, aided by higher jet deliveries

Though Northrop Grumman NOC.N slumps after qtrly profit halves, drags down defense giants

** Consumer Staples .SPLRCS slide 1.4%. PepsiCo PEP.O fizzles after annual core profit forecast cut amid trade war turmoil, and Procter & Gamble PG.N drops after 2025 forecast cuts due to weak consumer spending

** Meanwhile, individual investor bears slip, but still elevated

** SPX performance YTD:

Staples
4.3%
Utils
3.2%
Healthcare
0.2%
Real Estate
-0.6%
Financials
-0.7%
Materials
-1.6%
Industrials
-2.1%
Energy
-3.4%
SPX
-6.1%
Comm Svcs
-6.1%
Tech
-11.9%
Discretionary
-13.7%

(Lance Tupper and Terence Gabriel are Reuters market analysts. The views expressed are their own)

((lance.tupper@tr.com ; terence.gabriel@tr.com

))