Wall Street Edges Higher as Investors Brace for Major Tech Earnings

U.S. equities closed modestly higher on Monday, April 28, 2025, as Wall Street extended its winning streak to five consecutive sessions. The S&P 500 finished up by 3.54 points, or 0.06%, at 5,528.75, reflecting cautious optimism amid significant upcoming catalysts. Although the index has strung together a series of gains, it remains nearly 10% off its February record high, underscoring persistent market uncertainty (source).

The SPDR S&P 500 ETF Trust (SPY), a major ETF tracking the index, ended Monday at $550.85, after trading between an intraday high of $553.49 and a low of $545.07. Despite thin volume compared to averages, investors appeared reluctant to make aggressive moves ahead of key corporate earnings and economic data releases.

Major tech stocks were a particular focus heading into the next trading session, with expectations that results from companies like Amazon, Apple, Meta Platforms, and Microsoft would heavily influence market sentiment for the remainder of the week (source).

Earnings Season Takes Center Stage

Investor attention is squarely on the corporate earnings reports due this week, particularly from the tech sector. These reports are not only expected to reveal the health of major corporations but also provide insight into broader consumer and business spending trends. Analysts are divided, with some forecasting resilient profit margins, while others warn that slowing global demand and rising input costs could weigh heavily on quarterly results.

Meta Platforms, which recently expanded its AI offerings, and Apple, facing regulatory pressures abroad, are among the most closely watched firms. Any signs of weakness could trigger a renewed sell-off, particularly in technology-heavy indices like the Nasdaq Composite.

Moreover, investors will closely monitor forward guidance rather than just headline earnings figures. Signals that corporate America is bracing for slower growth could solidify bearish outlooks for the summer trading period.

Economic Data and Trade Policy Risks Loom

Aside from earnings, key economic reports are set to shape market moves in the upcoming session. The release of the personal consumption expenditures (PCE) price index—a closely watched gauge of inflation—will likely have a direct impact on Federal Reserve interest rate expectations. Any upside surprise could reignite fears of prolonged higher rates.

Additionally, updated labor market data will offer clues into the resilience of U.S. employment, an essential pillar supporting consumer spending amid rising prices.

Meanwhile, markets remain vulnerable to any fresh developments on the international trade front. Recently implemented tariffs have already rattled global supply chains and sparked recession fears. A Reuters survey showed that over 60% of economists now see a high risk of a global recession by year-end (source).

With earnings, inflation data, and trade headlines all converging, traders should brace for potentially sharp market swings in the days ahead. While recent gains have been encouraging, risks remain firmly on the radar for the next trading sessions.