S&P 500 marks fifth consecutive day of gains

General market commentary

U.S. equity markets closed mostly higher on Monday, maintaining momentum from a strong prior week where the S&P 500 gained 4.6% and the Nasdaq rose 6.7%. Most sectors of the S&P 500 finished the day flat to higher, with utilities and real estate showing particular strength. However, growth sectors like technology underperformed, with the Nasdaq 100 slipping 0.1%, despite a late-session rebound in Big Tech equities. The market remained relatively quiet with few corporate or economic updates, but attention is set to shift later in the week as about 30% of S&P 500 companies prepare to report their first-quarter results. Investors are also keeping a close eye on the impact of President Trump’s tariffs on corporate outlooks, with many companies lowering second-quarter guidance due to the ongoing trade uncertainty.

Looking ahead, a busy week of earnings reports from major tech giants such as Amazon, Apple, Meta Platforms, and Microsoft will likely drive market sentiment, alongside key economic data including GDP growth, inflation figures, and job reports. The U.S. 10-year Treasury yield fell to 4.21%, reflecting a more cautious tone in the bond market. Meanwhile, Treasury Secretary Scott Bessent signalled that it was "up to China" to de-escalate trade tensions, while progress was being made on other trade fronts. Despite the generally optimistic earnings season so far, the ongoing tariff-related uncertainty remains a key concern, and market participants are eagerly awaiting fresh economic insights to guide the next phase of the recovery.

Latest market and economic update

Asian equity markets mostly rose on Tuesday, driven by gains in automakers following the easing of U.S. auto tariffs, although mainland Chinese shares declined as Beijing held off from announcing new stimulus measures. Investors are awaiting China's manufacturing data and the Bank of Japan's upcoming policy meeting amidst ongoing global uncertainty.

U.S. equity futures were largely flat overnight as investors cautiously awaited key earnings reports from major tech companies and economic data releases. While the earnings season has been strong so far, concerns over recession risks and ongoing tariff uncertainties have kept market sentiment subdued.

European shares extended gains, with the STOXX 600 rising 0.5% as optimism grew over easing U.S.-China trade tensions and a ceasefire in Ukraine. Key market movers included Novo Nordisk, which rose 2.6%, and Deliveroo, which surged 16.5% after receiving a takeover proposal from DoorDash.

The US dollar struggled to recover its losses on Tuesday, with conflicting signals about the Sino-U.S. trade war weighing on investor sentiment. The euro dipped 0.15% to $1.1404, although it remained on track for its largest monthly gain against the dollar in nearly 15 years, as investors sought alternatives in Europe amid growing uncertainty over U.S. trade policies.

Oil prices fell in Asian trade this morning, pressured by ongoing U.S. trade tariff uncertainties and concerns over slowing demand amid global economic challenges. Additionally, a surprise three-day ceasefire between Russia and Ukraine added to market jitters, with traders also anticipating an OPEC+ meeting next week that may result in increased production.

Mike Carney, leader of Canada's Liberal Party, is set to win a full term as Prime Minister after early results showed the Liberals leading the Conservatives, though it remains unclear if they will secure a majority. His victory follows a surge in Canadian nationalism in response to U.S. President Donald Trump's attacks on Canada’s economy and sovereignty.

Equities on the move

The following companies experienced moves in their share price driven by analyst ratings, quarterly earnings, or other news:

Amazon launched its first 27 satellites for Project Kuiper on Monday, entering the satellite internet market to compete with SpaceX's Starlink. The company aims to deploy 3,236 satellites for global broadband coverage, with plans to begin service later this year, targeting underserved regions and meeting a 2026 deadline set by the U.S. Federal Communications Commission.

Tesla announced it will begin production of its long-awaited Semi trucks by the end of 2025 at its Nevada gigafactory, with an annual capacity of 50,000 units. The company has faced delays since unveiling the Semi in 2017, but has delivered at least 50 units to Pepsi, while also navigating challenges from slowing consumer EV sales and the impact of U.S.-China trade tensions.

Schneider Electric lowered its 2025 core profit margin forecast to 18.7%-19% due to the impact of foreign exchange fluctuations, particularly the weakening of the U.S. dollar and Chinese yuan. The company also reported a 7.4% rise in first-quarter sales to €9.33 billion, missing market expectations, with declines in industrial automation and residential buildings offset by growth in its data centre-focused Systems division.

Porsche lowered its 2025 forecasts due to the impact of U.S. tariffs and a decline in demand for electric luxury cars in China, revising its expected sales revenue to between €37 billion and €38 billion. The company also cancelled plans to expand its high-performance battery production at Cellforce, following a 28% drop in sales in China.

Loop Capital lowered its earnings and revenue estimates for Meta Platforms, reducing its price target to $695 from $900 due to risks from declining Chinese ad spending and signs of U.S. consumer weakness. Despite these revisions, the firm maintained a "Buy" rating, citing Meta's long-term potential for investors.

HSBC downgraded several major biotech shares, including Eli Lilly, citing risks from US tariffs, regulatory changes, and a potential patent cliff. They expressed concerns over the future growth of Lilly's obesity drug and broader sector headwinds, lowering their ratings on Roche, Biogen, GSK, and Novartis, while favouring growth and defensive equities like Novo, AstraZeneca, and J&J.

Bernstein upgraded Boeing to "Outperform" from "Market-Perform," citing progress in both its commercial and defence divisions, with a clearer growth trajectory following the Alaska door plug accident. The analysts believe Boeing's commercial operations are stabilising, while the defence sector outlook has improved, despite challenges like tariffs and halted China deliveries.

Truist Securities upgraded Peloton to "Buy" from "Hold," citing improvements in its fundamentals, cleaner balance sheet, and a clearer path to profitability under new leadership. The firm expects revenue growth in fiscal 2026, following cost reductions, debt refinancing, and strategic partnerships with companies like Lululemon, Google, and Amazon.

Upcoming data and events

Today's economic data includes the U.S. JOLTS job openings report and the Conference Board's Consumer Confidence Index, both highlighting shifts in the job market and consumer sentiment. Key earnings reports from Visa, Starbucks, and Mondelez International are also expected to influence market direction.

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