Market Recap: Trade Uncertainty Weighs on Sentiment Amid Cooling Inflation and Mixed Earnings

Index Update: Market sentiment was dampened by renewed trade uncertainty after a U.S. appeals court reinstated President Trump’s tariffs, reversing a lower court ruling and adding to concerns over trade policy direction. In after-hours trading, Gap Inc. dropped 15% on weak guidance, while Dell rose 2% on strong quarterly sales. Despite the uncertainty, major indexes closed slightly higher, with Nvidia leading gains after surpassing earnings expectations on strong AI chip demand.

Market Movers: On Thursday, the top gainers were SharpLink Gaming, Inc (+171.64%), followed by Streamline Health Solutions, Inc (+126.20%). On the contrary Taoping Inc. (-97.28%) and VivoPower International PLC (-37.74%) declined the most the same day.

Commodities Update: rude oil prices, both WTI and Brent, are heading for a second consecutive weekly decline amid uncertainty over U.S. trade tariffs and anticipation of the upcoming OPEC+ meeting. A U.S. appeals court's decision to temporarily reinstate Trump-era tariffs added market volatility, while the focus now shifts to whether OPEC+ will approve another output increase. Meanwhile, tensions within the group persist as Kazakhstan continues to exceed its production quota. On the demand side, a slight contraction in U.S. GDP raised concerns over fuel consumption, though a surprise draw in crude inventories helped provide some support. Gold prices fell, set for a weekly loss as investors await a key U.S. inflation report that could influence future Federal Reserve rate decisions. The metal had briefly gained after the appeals court ruling on tariffs added uncertainty to markets. Fed officials maintain a cautious stance, signaling potential rate cuts later this year while keeping policy steady in the near term. Despite the recent dip, gold remains up slightly for the month, marking its fifth straight monthly gain.

Macro Update: U.S. PCE inflation is expected to rise modestly by 0.1% in April, both for the headline and core indexes, following flat readings in March. On an annual basis, headline inflation is projected to ease to 2.2%, the lowest in seven months, while core inflation is seen falling to 2.5%, its lowest since March 2021. These figures reflect a continued cooling in price pressures, closely watched by the Federal Reserve.

Futures Update: U.S. stock index futures dipped slightly after an appeals court reinstated most of former President Donald Trump’s trade tariffs, adding a layer of uncertainty for investors ahead of key inflation data. Despite the renewed trade concerns, Wall Street remains on track for solid monthly gains, with notable increases across the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average.

After failing to sustain a strong upward momentum early in the session, stocks experienced fluctuations throughout Thursday's trading day. The S&P 500 edged higher by 23.62 points, or 0.40%, ultimately closing at 5,912.18. Technical analysis indicates that the index is currently hovering near a confluence zone that previously acted as resistance, suggesting a potential period of consolidation may be underway before any significant move higher. This zone could serve as a critical level where buyers and sellers are in equilibrium, leading to sideways trading in the near term. However, the formation of a golden cross between key moving averages signals a possible shift toward a more bullish outlook, which may provide support in the near term. Support levels are expected around 5,777, with resistance near 6,047.