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US Stocks Rally Faces Critical Test with Apple, Microsoft Earnings Amid Global Trade Tensions

US Stocks Rally at a Crossroads

The US stock market's recent rebound is under the microscope as investors brace for a pivotal week filled with corporate earnings reports and potential global trade developments. With the S&P 500 showing signs of recovery, the focus shifts to whether this uptick can sustain amidst ongoing uncertainties.

US stocks rebound to face litmus test amid earnings reports and global trade uncertainty

Earnings Season in the Spotlight

This week, about 180 companies from the S&P 500, accounting for over 40% of the index’s market value, are set to report their quarterly results. Tech giants Apple, Microsoft, Amazon, and Meta Platforms are among the most watched, as their performance could signal the market's direction amidst a challenging year.

Trade Tensions and Economic Indicators

Investor sentiment remains sensitive to global trade developments, with any news on tariffs potentially swaying the market. Additionally, key economic indicators, including the first-quarter US GDP report and the March PCE price index, are eagerly awaited to gauge the economy's health.

The upcoming US jobs report on May 2 is particularly critical, with expectations of 135,000 jobs added in April, highlighting the consumer's role in driving growth.