Market Movers: Jobs, Trade, and Tech

Fresh news and strategies for traders. SPY Trader episode #1139. Hey everyone, it's your pal Wally Pip here, and welcome to Spy Trader! It's 6 am on Saturday, May 3rd, 2025, and the markets never sleep, so neither do we! Let's dive into what's been moving the markets and what to watch out for. Why did the stock market investor bring a ladder to work? Because they heard the prices were going up! First off, the stock market has been generally rallying. We saw stocks close higher on Friday, May 2nd, because of a surprisingly strong jobs report. The S&P 500 had a great run, marking its ninth straight session in the green. For the week, the S&P 500 rose 2.3%, the Dow added 2.5%, and the Nasdaq jumped 2.7%. It's not all sunshine and roses though, the main US stock market index is still down 3.31% since the start of the year. Looking at different sectors, Industrials and Technology have been leading the charge. Tech stocks, in particular, have been strong, with the S&P 500 tech stocks surging nearly 8% on average the week before last. On the other hand, Energy and Healthcare haven't been doing so hot. In the news, that jobs report was a biggie – the US economy added 177,000 jobs in April. There's also some chatter about easing trade tensions between the US and China, which has boosted investor confidence a bit. But, hold on, the U.S. economy actually shrank by 0.3% in the first quarter of 2025, which is the first drop we've seen in three years, blamed on higher imports and weaker consumer spending. Earnings season is still underway, and so far, about 76% of companies have surprised to the upside. We're still keeping an eye on tariffs and trade uncertainty, though. Macrowise, we're watching that GDP contraction, inflation, and interest rates like hawks. The unemployment rate is still low, sitting steady at 4.2%. Everyone's waiting to see if the Federal Reserve might cut interest rates soon. Consumer spending is holding up relatively well. Companyspecific news: Apple shares took a little hit after warning about a $900 million tariff impact. Amazon edged lower with some cautious guidance. Exxon Mobil and Chevron, however, rose after reporting their results. As for the 'Magnificent Seven', Microsoft and Meta blew past expectations in their firstquarter reports. Amazon and Apple also beat earnings estimates, but their outlooks were a bit weaker than expected. So, what's Wally recommend? Keep a close watch on those USChina trade talks, as any real progress is key for the market to keep climbing. Stay informed about GDP, inflation, and employment numbers because those will drive market sentiment and the Fed's decisions. With sectors all over the place, think about spreading your investments around. Dig into those company earnings reports and pay attention to what they're saying about tariffs. Be ready for some bumps in the road, especially with those tariff worries and the potential economic slowdown. And remember, keep a longterm view – the market always has its ups and downs. Finally, keep a close eye on the Federal Reserve actions. That's all for today, folks! Stay tuned for more updates, and remember, invest wisely!