Dow Jones Futures on Edge: Earnings Surge and Trump's Tariffs; Key Stocks Nearing Buy Zones

On Monday morning, Dow Jones futures declined modestly, alongside drops in S&P 500 futures and Nasdaq futures. The megacap stocks were also affected. Meta Platforms , Microsoft , Apple and Amazon.com Report this within the upcoming week, alongside many other names.

Last week saw a significant surge in the stock market, signaling the start of a fresh upward trend fueled by optimism over Trump’s tariffs. Major indices experienced multiple substantial daily increases as both the S&P 500 and Nasdaq surpassed an important resistance threshold. Numerous top-performing stocks either broke out or indicated buying opportunities, with numerous others preparing for potential advances.

Kindly view the video at Investors.com titled "Tariffs Impact Tech Titans; Will Profit Reports Unveil the Extent of the Damage?"

Tesla was among the top weekly gainers, despite not being ranked highly. Although Tesla’s earnings were poor, TSLA shareholders remain optimistic about Elon Musk's scheduled release of the robotaxi service in June.

The market is signaling investors to increase their exposure. However, they should do so incrementally.

Facebook, Microsoft, Apple, and Amazon remain below their peaks. However, their earnings announcements will offer perspectives on areas such as cloud computing, artificial intelligence spending, e-commerce operations, advertising revenue, consumer technology trends—and the impact of tariffs imposed under the Trump administration.

Meanwhile, Brinker International , Spotify , Stride , GeneDx , Sprouts Farmers Market , Howmet Aerospace and Robinhood are ready for investment as they sit within or close to their purchase zones.

Major economic releases are ahead, including the March PCE inflation report and first-quarter GDP figures set for release on Wednesday, along with the April employment report scheduled for Friday.

Spotify's stock is currently performing as follows: IBD Leaderboard Watchlist. The Microsoft share is being monitored. IBD Long-Term Leaders list . Stride, Sprouts, and Robinhood stocks are listed. IBD 50 Sprouts' stock is currently performing as such IBD Big Cap 20 .

Dow Jones Futures Today

Dow Jones futures dropped by 0.2% compared to their expected values. The S&P 500 futures also decreased by 0.2%, and the Nasdaq 100 futures slid by 0.3%.

The 10-year Treasury yield remained largely unchanged at 4.27%, following a slight decline of several basis points on Sunday evening.

Treasury Secretary Scott Bessent stated on Monday that China needs to take action to ease tensions in the ongoing trade conflict between the U.S. and China. This came after remarks made by both Bessent and President Donald Trump earlier in the week suggested that tariff reductions were imminent for the U.S. and China. Additionally, Bessent mentioned on Sunday that discussions with certain countries in Asia are progressing smoothly.

U.S. ports are about to see traffic plunge, with a ripple effect in the coming weeks through the economy.

Keep in mind the rapid developments from last night. Dow futures And this isn't guaranteed to result in real trades in the subsequent regular session. stock market session.

Participate with IBD specialists who will examine top-performing stocks and overall market trends on IBD Live.

Stock Market Rally

The stock market surge peaked last week, particularly on Tuesday's front. follow-through day The initial among multiple significant upward movements occurred when President Donald Trump stated that Chinese tariffs were expected to decrease considerably. He also mentioned his intention not to adopt an overly aggressive stance towards Beijing. Additionally, both Trump and key officials expressed optimism about ongoing trade discussions involving numerous nations.

The Dow Jones Industrial Average increased by 2.5% over the previous week. stock market trading The S&P 500 index jumped by 4.6%. The Nasdaq composite surged by 6.7%. The small-cap Russell 2000 rose by 4.1%.

The S&P 500, Nasdaq, and Russell 2000 reclaimed their 21-day moving averages, previously acting as significant resistance levels. Additionally, both the S&P 500 and Nasdaq surpassed their peaks from April 9.

The increases seen on Friday were mostly focused on Tesla shares and other large corporations whose stocks had been performing poorly, such as Nvidia And Meta's stock. However, gains over the week were widespread.

Much hinges on developments regarding Trump’s tariffs and forthcoming corporate earnings reports. A single tweet or an unfavorable headline might cause swift selling pressure in the markets. Additionally, by early May, the effects of the ongoing trade conflict may begin to permeate into the actual economy. Conversely, considerable strides made towards settling the tariff disputes have the potential to drive further increases in equity prices.

Nevertheless, at present, the market is performing robustly, as numerous top-performing stocks are either surpassing previous highs or initiating premature buying opportunities.

Many other stocks are setting up, though often with earnings on tap.

Meta and Microsoft report Wednesday night, with Apple and Amazon due late Thursday

On the negative side, insurers with a more defensive stance have been selling off, whereas safe-haven gold experienced pullbacks following significant gains.

The 10-year Treasury yield dropped six basis points to 4.27%, retracing from a peak of 4.41% earlier in the week.

Last week, U.S. crude oil futures dropped by 1.55%, closing at $63.02 per barrel.

Top Five Stocks Worth Monitoring as They Approach Purchase Levels

ETFs

In the realm of growth ETFs, the iShares Expanded Tech-Software Sector ETF surged by 9.4%, thanks largely to Microsoft’s significant presence within this fund as an important IGV component. Meanwhile, the VanEck Vectors Semiconductor ETF climbed sharply by 10.1%.

Last week, the ARK Innovation ETF surged by 13%, with ARK Genomics climbing 8.4%. Tesla shares stand as the top holding within all of ARK Invest’s exchange-traded funds. Cathie Wood’s firm holds a significant amount of Robinhood stock along with a notable position in Amazon.

Last week, the SPDR S&P Metals & Mining ETF saw an increase of 3.3%. Meanwhile, the Energy Select SPDR ETF went up by 1.1%, the Health Care Select Sector SPDR Fund increased by 1.9%, and the Industrial Select Sector SPDR Fund jumped by 3%.

The Financial Select SPDR ETF increased by 2.9%.

Timing The Market Using IBD's ETF Trading Approach

What To Do Now

The main stock indices experienced a robust surge during the past week as numerous top-performing stocks climbed significantly.

Investors ought to capitalize on opportunities but proceed incrementally to steer clear of being caught in a market downturn or purge. Should the stock market rally advance steadily, transitioning from holding cash to being entirely invested will not require much time.

The market remains driven by headlines. Recent positive movements were largely due to developments regarding Trump’s tariffs from the previous week. Should these tariff-related updates take a negative turn, the market might experience a sharp decline, possibly severe. In addition, we're right in the middle of earnings season, with major companies like Apple, Microsoft, Meta, and Amazon set to release their financials, contributing to an overwhelming influx of corporate reports.

However, at the end of the day, what truly counts is how the market responds to new information. Currently, the market is performing positively. Adjust your actions accordingly.

Keep your watchlists current — and have your exit plans prepared.

Remain involved and stay adaptable.

Read The Big Picture Each day to remain aligned with the market trend and prominent stocks and sectors.

Please follow Ed Carson on Threads @EdCarson @edcarson1971 and X/Twitter at @IBD_ECarson for updates on the stock market and additional information.

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