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Anna's Markets Recap

_{Just facts, you think for yourself}

Saturday, 5:34 AM

May 3, 2025

Good morning news friend! Here is a quick recap of what happened in the markets this week. 📰🌟

Economic & Market Overview

U.S. equity markets rebounded sharply, erasing April’s losses amid mixed economic signals. The S&P 500 gained 2.9%, achieving its longest winning streak since 2004.

Real GDP unexpectedly contracted 0.3% in Q1 2025 due to reduced exports and consumer spending linked to trade tensions. Inflation persisted, with core PCE rising at a 3.5% annualized rate despite flat overall month-on-month growth in March.

The Conference Board's Consumer Confidence Index dropped sharply to 86.0, its lowest since May 2020, reflecting inflation and trade uncertainty.

Labor markets showed resilience with April nonfarm payrolls rising by 177,000 and unemployment steady at 4.2%, despite weak private payroll data from ADP.

The 10-year Treasury yield rose slightly to 4.32%, reflecting mixed expectations about future Fed policy.

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Technology & Growth

Tech giants drove market gains with strong quarterly earnings. Microsoft surged over 11%, buoyed by cloud and AI optimism. Meta jumped 9% on robust ad revenues and user growth.

Apple saw a modest weekly dip (-1.9%) despite record services revenue and iPhone sales, as CEO Tim Cook warned about tariff-related costs potentially reaching $900 million.

Amazon was nearly flat (+0.5%) with slowing AWS growth but robust advertising revenue. Nvidia climbed 6%, reflecting strong demand for AI infrastructure despite emerging competition concerns.

Netflix gained around 5%, extending its winning streak to 11 consecutive trading days due to continued positive subscriber momentum.

Broadcom advanced nearly 7%, benefiting from semiconductor sector strength and AI demand optimism.

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Financial Institutions

Financial stocks rebounded amid easing recession fears and steady interest rates.

JPMorgan Chase and Bank of America rose about 4%, helped by stable credit conditions and a strong April jobs report.

Visa climbed nearly 4% after beating profit estimates, reporting strong payment volume growth, and launching a $30 billion buyback program.

Mastercard rose around 5%, benefiting from resilient consumer spending and robust cross-border transaction growth.

Overall, the financial sector benefited significantly from improved economic outlook signals.

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Consumer Staples & Healthcare

Healthcare stocks showed mixed performance. AbbVie jumped over 6% following strong Q1 earnings, driven by newer immunology drugs, and raised full-year EPS guidance.

Eli Lilly, despite strong revenue growth from diabetes and obesity treatments, declined nearly 7% after missing EPS estimates, indicating profit-taking amid high investor expectations.

UnitedHealth fell 4.5%, impacted by rotation away from defensive stocks and ongoing concerns following its significant mid-April guidance cut.

Consumer staples held steady; Johnson & Johnson inched up 1%, and Procter & Gamble was essentially flat, reflecting stable demand for healthcare and household products.

Big-box retailers Costco and Walmart gained over 3%, supported by strong spring sales trends and consumer preference for discount retailers amid ongoing economic uncertainty.

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Energy & Industrial

Energy stocks underperformed as oil prices fluctuated without clear direction. Exxon Mobil fell approximately 2% despite solid Q1 results, reflecting lower year-over-year crude oil prices and softer downstream earnings.

The company reported robust cash flow ($13 billion) and returned significant capital ($9.1 billion) to shareholders.

Industrial sentiment was generally positive; Home Depot rose nearly 2%, supported by optimism about spring building demand and positive housing market sentiment.

Industrials broadly benefited from expectations of potential Federal Reserve easing later in the year, possibly bolstering construction and housing-related activities.

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Did you know we also write in-depth deep dives? They are long, packed with insights, and have received rave reviews. If you’re up for a detailed, action-packed read, check them out:

• How Trade Wars are Reshaping the US Treasury Market

• The End of the Easy-Money Era

• The Longevity Race

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Baked with love,

Anna Eisenberg ❤️