Dow Jones futures fell slightly early Monday, along with S&P 500 futures and Nasdaq futures, as Treasury Secretary Scott Bessent it's up to China to "de-escalate" the trade war with the U.S. Megacaps Meta Platforms, Microsoft, Apple and Amazon.com report this week, along with a slew of other names.
The stock market rose sharply last week, confirming a new uptrend amid Trump tariff hopes. The major indexes had several big daily gains, with the S&P 500 and Nasdaq clearing a key resistance level. A sizable number of leading stocks broke out or flashed buy signals, with many others setting up. (For the most current stock market news, click here.)
Tesla was one of the biggest weekly winners, though it's not in position. Tesla earnings were lousy, but TSLA investors are bullish on Elon Musk's planned robotaxi launch in June.
The market is telling investors to add exposure. But do so gradually.
Meta, Microsoft, Apple and Amazon are still well off highs. But their reports will provide insight into including cloud computing, AI investments, e-commerce, advertising, consumer tech demand — and Trump tariffs.
Meanwhile, Brinker International, Spotify, Stride, GeneDx, Sprouts Farmers Market, Howmet Aerospace and Robinhood are on tap with the stocks in or near buy areas.
Big economic reports also loom, with the March PCE inflation report and first-quarter GDP data due Wednesday and the April jobs report on Friday.
Spotify stock is on the IBD Leaderboard watchlist. Microsoft stock is on the IBD Long-Term Leaders list. Stride, Sprouts and Robinhood stock are on the IBD 50. Sprouts stock is on the IBD Big Cap 20.
Trump Tariffs: Bessent Puts Onus On China
Treasury Secretary Bessent told CNBC on Monday that it's "up to China" to de-escalate the trade war with the U.S. That followed comments from Bessent and President Donald Trump last week signaling that U.S.-China tariffs would fall. Those statements helped fueled a huge stock market rally. Bessent said Monday that the market reaction to his comments last Tuesday surprised him.
China says it's not holding talks with the U.S.
Bessent singled out India as a country likely to strike an early trade deal with traffic.
U.S. ports are about to see traffic plunge, with a ripple effect in the coming weeks through the economy.
Dow Jones Futures Today
Dow Jones futures declined 0.2% vs. fair value. S&P 500 futures fell 0.2% and Nasdaq 100 futures lost 0.3%.
The 10-year Treasury yield was little changed at 4.27% after falling a few basis points Sunday night.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
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Stock Market Rally
The stock market rally boomed last week, with Tuesday's follow-through day the first of several big up sessions. President Donald Trump said China tariffs would "fall substantially" and that he won't play hardball with Beijing. Trump and top officials touted trade talks with many countries.
The Dow Jones Industrial Average rose 2.5% in last week's stock market trading. The S&P 500 index leaped 4.6%. The Nasdaq composite soared 6.7%. The small-cap Russell 2000 popped 4.1%.
The S&P 500, Nasdaq and Russell 2000 retook their 21-day moving averages, which had served as key resistance. The S&P 500 and Nasdaq also got above their April 9 highs.
Friday's gains were largely concentrated in Tesla stock and other beaten-down megacaps such as Nvidia and Meta stock. But weekly gains were broad based.
A lot will depend on Trump tariff news and upcoming earnings. The market could quickly sell off with a tweet or negative headline. Meanwhile, the trade war will start to ripple through the real economy by early May. On the flip side, significant progress toward resolving the tariff issue could trigger further stock market gains.
Regardless, right now the market is acting well, with many leading stocks breaking out or triggering early entries.
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 downside, more-defensive insurers have sold off, while safe-haven gold plays pulled back after huge runs.
The 10-year Treasury yield fell six basis points to 4.27%, reversing from a high of 4.41% early in the week.
U.S. crude oil futures fell 1.55% to $63.02 a barrel last week.
Five Stocks To Watch Near Buy Points
ETFs
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF jumped 9.4%, with Microsoft stock a major IGV holding. The VanEck Vectors Semiconductor ETF sprinted 10.1% higher.
The ARK Innovation ETF soared 13% last week, and ARK Genomics rallied 8.4%. Tesla stock is the No. 1 holding across ARK Invest's ETFs. Cathie Wood's ARK owns a lot of Robinhood stock and carries a decent stake in Amazon.
The SPDR S&P Metals & Mining ETF advanced 3.3% last week. The Energy Select SPDR ETF rose 1.1%, and the Health Care Select Sector SPDR Fund climbed 1.9%. The Industrial Select Sector SPDR Fund gained 3%.
The Financial Select SPDR ETF was up 2.9%.
Time The Market With IBD's ETF Market Strategy
What To Do Now
The market rally had a powerful week on the major indexes, with many leading stocks rallying.
Investors should be taking advantage but doing so gradually to avoid getting burned in a market sell-off or shakeout. If the stock market rally makes steady progress, it won't take long to go from cash to fully invested.
It's still a headline-driven market. Trump tariff news spurred the past week's big gains. If Trump tariff news sours significantly, the market could retreat, perhaps violently. Meanwhile, earnings season is in full swing, with Apple, Microsoft, Meta and Amazon leading a tsunami of reports.
But, ultimately, it's the market reaction to news that matters. Right now, the market is doing well. Act accordingly.
Have your watchlists up to date — and your exit strategies ready.
Stay engaged and be flexible.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
