4:18pm: Treading water
Monday was a day of consolidation, with traders getting ready for what could be some big moves later in the week.
US stocks had a pretty mixed day as investors geared up for a big week filled with earnings reports and important economic updates.
The Dow managed to climb 114 points, or 0.3%, closing at 40,228, as blue-chip stocks stayed in favor. The S&P 500 barely budged, ticking up just 4 points to 5,529, with the broader market mostly holding steady ahead of major tech earnings. Over on the Nasdaq, things were a little softer — it slipped 17 points, or 0.1%, as tech stocks cooled a bit while traders waited for results from the "Magnificent Seven."
Small caps outshined the rest, with the Russell 2000 rising 0.4% to 1,966, keeping up its recent momentum.
Overall, the market felt cautious, with investors treading carefully before a packed schedule of earnings and economic data, including GDP and April’s jobs report. On top of that, everyone’s still watching developments around US-China trade talks and any shifts in tariff policies.
3:50pm: Stocks on the move
Nvidia's shares dropped 3.5% after reports that Huawei Technologies plans to test its new AI chip, the Ascend 910D, which aims to rival Nvidia's H100.
Arizona Gold & Silver acquired 300 acres of land near its Philadelphia gold project in Arizona for potential future development of a leach pad or tailings disposal.
Plug Power's shares rose after announcing strong first-quarter 2025 revenue results and securing a $525 million credit facility with Yorkville Advisors.
Medicus Pharma entered a binding letter of intent to acquire Antev, a biotech firm developing a treatment for acute urinary retention and high-risk prostate cancer.
Innovative Eyewear, a Tekcapital PLC investment, launched a new line of ChatGPT-enabled Reebok sunglasses, available via its Lucyd.co site and other retailers soon.
3:30pm: Big Tech earnings poised to shine
Ahead of a critical week for markets, Dan Ives of Wedbush said he expects strong earnings from Microsoft, Amazon, Meta, and Apple, despite ongoing concerns over tariffs and trade tensions with China.
Investors are particularly focused on cloud spending, digital advertising recovery, and the continued strength of the AI revolution, Ives noted.
“The good news is that we are still seeing very firm Cap-Ex intentions for 2025 as this AI Revolution is upon us and the use case enterprise phase is accelerating in many large scale AI strategic deployments,” Ives wrote. He noted that about 15% of overall IT budgets are now AI-focused, a figure that is being protected even as lower-priority spending faces cuts amid tariff uncertainty.
While Ives remains bullish on Big Tech, he warned that Apple could be particularly vulnerable if tariffs are implemented. He outlined scenarios where Apple's 2025 and 2026 numbers could fall by about 10% in a base case, up to 20% in a worst-case outcome, or just 2%-5% if negotiations progress. Still, Ives remains optimistic, emphasizing Apple's strong iPhone and iOS ecosystem and growing Services business as sources of stability.
“Apple bulls like ourselves need to look past the next 3 months in our view and assume China tariff negotiations take a positive turn to stop this tariff tornado from hitting Cupertino and iPhone prices,” he added.
2:26pm: Trump teases income tax cuts
Donald Trump said on Sunday that his tariff plans could lead to income tax cuts for Americans earning under $200,000 a year.
Posting on Truth Social, Trump claimed tariff revenues might eventually eliminate income taxes for some, despite economists questioning this approach.
Public concerns are growing over his economic strategy, with one poll showing 69% of Americans feel he is not doing enough to lower prices.
And the olive branch comes against the backdrop of tariff negotiations, growing unease on the stock and bond markets, a falling dollar and growing trade hostilities with China.
1:42pm: Monday's headlines
Canadians are at the polls on Monday for a federal election marked by a deteriorating economic outlook and rising tensions with the United States, as voters faced a choice between sharply contrasting visions for the country’s future.
International Business Machines Corp (NYSE:IBM) has announced plans to invest $150 billion in the United States over the next five years, directed toward research and development, manufacturing, and quantum computing initiatives.
The risk of a global recession this year has risen sharply, according to a Reuters poll of over 300 economists. Around 60% of those surveyed said the chances were high or very high, citing the damaging impact of US tariffs on business confidence.
Germany's Merck KGaA has agreed to acquire US biotech firm SpringWorks Therapeutics for $3.9 billion in cash.
12:45pm: Markets slump
US stocks are trading lower at midday as investors digest a mix of earnings results and economic data.
The Dow Jones Industrial Average is down about 0.3%, showing a bit more resilience compared to the S&P 500 and Nasdaq, which are down 0.7% and 1.2%, respectively.
Tech shares are dragging the market lower, with investors staying cautious amid ongoing worries about inflation, interest rates, and corporate profits.
11:40am: Gold prices retreat
Gold fell sharply at the start of trading on Monday, dropping to around $3,286 after hitting record highs last week.
Rania Gule, Senior Market Analyst at XS.com – MENA attributes the pullback to optimism over improving US-China trade relations. "Growing optimism about the improvement of these relations, following positive comments from U.S. Agriculture Secretary Brooke Rollins about daily talks between the two countries regarding tariffs, led investors to reduce their positions in gold as a haven," Gule commented.
Despite the current weakness, Gule believes gold’s long-term outlook remains supported by broader economic uncertainties, including concerns over US economic growth due to trade tensions and warnings from the International Monetary Fund about recession risks.
Upcoming key U.S. economic data, such as Q1 GDP and the April employment report, could also influence gold prices, especially if the results are weaker than expected.
11:06am: Election day in Canada
Canadians headed to the polls on Monday in a federal election overshadowed by a worsening economic outlook and growing tensions with the United States, as voters weigh sharply different visions for the country’s future.
Affordability concerns have dominated the campaign, with stagnant wages and slowing productivity growth putting economic issues front and center. But the election of Donald Trump in the United States has added new urgency, shaking up Canada’s trade relationship with its largest partner and roiling the political landscape.
In a stunning reversal of fortune, Canadian Liberals, led by Mark Carney, are expected to win a majority of seats. YouGov predict they could win as many as 204 seats, with a central estimate of 185.
Pierre Poilievre, leader of the Conservative Party, had enjoyed a commanding lead following the chaotic exit of longtime Liberal Prime Minister Justin Trudeau and his minority government late last year. But Carney, a former Bank of Canada and Bank of England governor, has rapidly closed the gap, capitalizing on a tough stance against US trade threats and economic nationalism.
Read more here.
10:33am: Week ahead
US stock markets are heading into a pivotal week, with Big Tech earnings in focus amid ongoing concerns over tariffs and global growth.
Microsoft, Meta, Amazon, and Apple are all set to report results this week following Tesla and Alphabet last week. Still, markets are expected to start cautiously.
Elsewhere, this week’s economic data will play a critical role as the Federal Reserve heads into a communications blackout ahead of its May 7 meeting. Friday’s April employment report is key, with Deutsche Bank forecasting a slowdown to 125,000 payroll gains from 228,000 previously.
Read more here.
9.55am: US stocks start higher but quickly turn tail, led by Nasdaq
US stocks opened mostly higher, but the Nasdaq quickly stood out by turning tail and dropping into the red.
After almost half an hour of trading, the tech-heavy exchange's composite index was down 0.2%, led by falls of 1.7% for Nvidia and with other semiconductor names not far behind.
The Dow Jones, meanwhile, was up 0.3%, and the S&P 500 was flat.
The domestically focused Russell 2000 was leading the climb, up 0.7%.
8am: Dow Jones, Nasdaq and S&P futures flat amidst cautiously optimistic mood
Wall Street is expected to start with week with a mood of cautious optimism and summer-like weather, with no dark clouds launched by the White House over the weekend.
On the futures market, Dow Jones, S&P 500 and Nasdaq all trimmed earlier deficits as the opening bell approached, with a flat start indicated.
After a mixed Asia session stocks in Europe are mostly higher, with Germany's DAX up 0.5% but the FTSE 100 only just above flat in London.
Last week had ended positively for US stocks, with the Nasdaq climbing 1.3% to wrap things up on Friday, while the S&P advanced 0.7% and the Dow Jones was pretty much flat.
Corporate earnings will take centre stage this week, with US tech titans reporting results including Apple, Microsoft, Amazon and Meta, among many others.
In premarket trading on Monday, Nvidia was marked lower after a WSJ report that China’s Huawei is preparing to test a new high-end artificial intelligence chip aimed at rivalling the US company's flagship products, with sample batches ready as soon as late May.
Huawei has already approached Chinese tech companies to begin technical testing.
"Risk rallied last week as hopes grew that China, and the US would reach a resolution on their trade standoff," said market analyst Kathleen Brooks at XTB.
There has been "no concrete progress" so far, she added, but the impact of the trade war is "already being felt", such as Chinese fast fashion group Shein announcing a raft of price increases for US consumers at the end of last week as a symbolic move that many US consumers will start to notice.
Trade news on Monday included Japan's main negotiator with Washington saying: "There is no change to our stance, we are demanding full removal of US tariffs" and that "we are not thinking about sacrificing agricultural products for the sake of autos in tariff negotiations".
Akazawa says the Japan trade party will travel to the US capital between Wednesday and Friday, April 30 and May 2.
China also issued a denial that any trade discussions had begun, echoing words over the weekend from US Treasury Secretary Scott Bessent, who said he was not aware of a call between the US President and his Chinese counterpart, to which President Trump had alluded.