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28.04.2025 09:06 AM
Stock Market Update for April 28th: S&P 500 and NASDAQ Pause Their Advance

In the previous regular session, U.S. stock indices closed higher. The S&P 500 gained 0.74%, the Nasdaq 100 rose 1.26%, and the Dow Jones Industrial Average edged up by 0.05%.

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Asian indices started the week cautiously, with investors holding off on riskier bets as they awaited progress in U.S. trade negotiations and signs of further stimulus from China. Futures contracts in Europe showed little change. Gold fell 1.6% as traders trimmed positions amid indications that the rally may have gone too far, too quickly. Meanwhile, yields on 10-year U.S. Treasury bonds rose by 1 basis point.

This week, investor focus will turn to key economic data releases: the Bank of Japan's interest rate decision, the U.S. employment report, and GDP figures. These will help gauge whether recent market stability can continue as trade tensions ease. Traders are also taking some comfort in the prospect that the Federal Reserve could lower interest rates sooner than previously expected. While sentiment has become more optimistic in recent weeks, the market remains cautious, with domestic policy decisions and political maneuvers exerting a strong influence. Overall, conditions are likely to stay highly uncertain and volatile, particularly given ongoing tariff and geopolitical risks.

This week, four companies from the so-called "Magnificent Seven" — Microsoft Corp., Apple Inc., Meta Platforms Inc., and Amazon.com Inc. — are due to report earnings. Analysts expect the group, which also includes Alphabet Inc., Tesla Inc., and Nvidia Corp., to deliver average profit growth of around 15% in 2025 — a forecast that has remained largely unchanged since early March, despite escalating trade tensions.

Investors are also closely monitoring any signs of progress in U.S. trade talks after President Trump indicated that another delay in imposing higher tariffs is unlikely. Asian economies — particularly those facing some of the highest "reciprocal" U.S. tariffs — are leading their Western counterparts in trade discussions with the U.S. administration. To facilitate the next steps, Trump's team has developed a framework for negotiations with approximately 18 countries, outlining key topics for discussion.

U.S. Treasury Secretary Scott Bessent recently stated that the administration is working on bilateral trade deals with 17 key partners, excluding China. Bessent reiterated the administration's view that Beijing will ultimately be forced back to the negotiating table, unable to withstand the latest 145% tariffs imposed on Chinese goods.

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Technical Outlook for S&P 500

Today, buyers will aim to break through the immediate resistance at $5,520. A successful breakout would strengthen bullish sentiment and open the path toward the next target at $5,552. Maintaining control above $5,586 would further reinforce buyers' positions.

If risk appetite weakens and the index moves lower, it will be critical for buyers to defend the $5,483 support level. A break below this zone could push the S&P 500 down toward $5,443 and possibly extend the decline to $5,399.

Jakub Novak,
Analytical expert of InstaForex
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