Weekly Market Insights - 28 April
Get updated on the key happenings last week in 3 minutes.
Summary
Trade Deal Optimism Fuels Market Rally: Wall Street rallied for three straight days on hopes of progress in US-China trade talks, with tech giants leading the charge.
Global Growth Concerns Persist: The IMF slashed its 2025 global growth forecast to 2.8%, citing the ongoing impact of tariffs and trade tensions.
Tech Sector Shines Amid Supply Chain Shifts: Apple’s pivot to India and strong semiconductor earnings bolstered the tech sector, while consumer staples lagged.
Growth Picks Performance
Total Returns
Growth Picks - 169% vs S&P 500 - 71%
Compiled Annual Growth Rate
Growth Picks - 19% vs S&P 500 - 10.6%Markets Rally on Trade Optimism
US equities enjoyed a three-day rally this week, buoyed by optimism that the U.S. and China could de-escalate their trade conflict. Tech stocks like Nvidia (NVDA), Advanced Micro Devices (AMD), and Broadcom (AVGO) led gains, as comments from President Trump and Treasury Secretary Scott Bessent signaled potential tariff reductions. Trump’s pledge to finalize trade agreements within weeks, coupled with reports of phased tariff rollbacks for China, provided a boost to investor sentiment.
Despite the positive momentum, the International Monetary Fund (IMF) revised its 2025 global growth forecast downward to 2.8%, warning that US tariffs could significantly dent economic output. This caution comes as trade war fears and recession risks linger, with a Bloomberg survey showing the probability of a U.S. recession within the next 12 months rising to 45%—up from 30% in March.
A Focus on US-China Trade
US-China tensions dominated headlines this week. Beijing reiterated its demand for full tariff rollbacks before any trade agreements could be finalized. In response, the US has been exploring alternate trade opportunities, particularly in India. The administration is seeking full e-commerce market access for major players like Walmart (WMT) and Amazon (AMZN), signaling a strategic shift to diversify trade relationships.
Apple (AAPL) also made headlines with its strategic move to relocate a significant portion of its production to India. By 2026, Apple plans to manufacture over 80 million iPhone units annually in India, leveraging local production to mitigate risks tied to tariffs and geopolitical tensions with China. This transition not only strengthens Apple’s supply chain but also positions India as a key hub in global smartphone manufacturing. Foxconn, Tata, and Pegatron are expanding operations in the region, boosting investor confidence and creating economic opportunities in India through job creation and increased exports.
Tech Rebounds
The technology sector led the market this week, fueled by strong semiconductor earnings and optimism over easing trade tensions. Alphabet (GOOGL) (GOOG) posted strong premarket gains after exceeding expectations on cloud revenue, further boosting sector confidence.
On the other hand, consumer staples struggled, with Procter & Gamble (PG) cutting its profit guidance due to tariff-related price hikes. This exemplifies how certain industries remain exposed to the lingering effects of trade disputes.
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Disclaimer: This article constitutes the author’s personal views and is for entertainment and educational purposes only. It is not to be construed as financial advice in any form. Please do your own research and seek advice from a qualified financial advisor. From time to time, I have positions in all or some of the mentioned stocks when publishing this article. This is a disclosure - not a recommendation to buy or sell stocks.