Date Published: April 30, 2025
Preliminary Q1 figures revealed the US economy contracted by 0.3%, its first negative quarter in years, mainly due to import surges ahead of tariff deadlines and weaker investment.
Despite a turbulent month, equity markets staged a remarkable comeback as big technology firms delivered robust earnings. Meta, Microsoft, and Alphabet posted upside surprises, convincing investors that tariff headwinds might not hinder long-term sector growth.
The Dow and S&P 500 rallied in the final days of April, erasing most prior losses; Nasdaq recovered almost fully, driven by technology optimism.
Import growth hit a 41% annualized rate, significantly weighing on GDP calculations, with April jobs creation limited to just 62,000 posts. The Fed’s preferred inflation measure eased, giving some hope for softer price pressures.
Trading volumes soared with tech earnings, while rotation toward high-growth and defensive stocks dominated the closing week.
By April 30, the S&P 500 finished the month only 0.8% down, despite historic volatility and confirmed economic contraction.
The month’s news underlined resilience in US tech and the speed at which sentiment can rebound on pivotal earnings results, even in a challenging macro climate.