Six-Day Rally Lifts US Equities as Wall Street Eyes Resistance Levels Ahead

Wall Street Extends Winning Streak on Earnings Boost

The U.S. equity market continued its rebound on Tuesday, April 29, 2025, with the S&P 500 closing up 0.6% at 5,560.83. This marks the benchmark index’s sixth consecutive daily gain—its longest winning streak since November 2024—helping to ease concerns following a sharp sell-off earlier this month. Despite the positive momentum, the S&P 500 is still down 5.5% year-to-date, reflecting the lingering drag of recent trade policy tensions and broader economic uncertainty.

Strong quarterly results from companies such as UPS, General Motors, and JetBlue Airways helped fuel the rally. These earnings reports beat analyst expectations, reinforcing investor confidence that corporate America remains resilient despite the headwinds from new U.S. tariff policies introduced earlier in April. UPS, in particular, posted earnings that exceeded forecasts and announced ongoing cost-cutting measures, contributing to market optimism. (Associated Press)

Tech stocks also contributed to the day’s gains, with investors positioning ahead of key earnings reports from giants like Apple and Microsoft, expected later this week. These updates are widely seen as critical bellwethers for the broader market’s direction in Q2.

Potential Headwinds: Resistance Levels and Economic Uncertainty

While the short-term trend appears bullish, analysts are warning of significant technical hurdles. The S&P 500 is now nearing its 50-day and 200-day moving averages—both widely followed levels of resistance. A failure to decisively break through these could result in a reversal or, at the very least, an increase in intraday volatility. According to Business Insider, traders are particularly focused on whether the index can hold above the 5,550–5,600 zone in coming sessions.

Adding to the uncertainty is a slew of economic data set for release later this week. Key indicators such as the personal consumption expenditures (PCE) price index, a preferred inflation gauge for the Federal Reserve, and updated labor market figures could significantly influence sentiment. If inflationary pressures remain elevated or job growth shows signs of stalling, expectations for interest rate cuts may be pushed further into the future—potentially undermining the recent rally.

Investor sentiment, while more optimistic than earlier in the month, remains fragile. The shockwaves from the April “Liberation Day” tariffs are still being felt, especially in multinational sectors exposed to global supply chains. Market watchers are closely monitoring whether foreign capital outflows—prompted by fears of potential U.S. capital controls—will accelerate in response to policy developments.

As earnings season enters its most crucial phase and economic data looms, the next few sessions may prove pivotal in determining whether Wall Street’s spring rebound has staying power—or is merely a temporary relief rally.