A packed upcoming week for markets will test a U.S. stocks rebound, with investors focused on a wave of corporate results led by Apple and Microsoft, while the prospect of global trade developments threatens to cause volatility at any time.
The monthly U.S. employment report, data on first-quarter U.S. economic growth and an inflation update add to the potential market-sensitive events in the coming week, as investors weigh whether the recent strength suggests the worst of a tariff-induced equities tumble is over.
With the S&P 500 ( on pace for a solid week of gains, the U.S. benchmark index has pared its recent slide by about half but remains down some 10% from its February record high.
Sentiment for equities has been lifted this week by signals of easing in the Trump administration's trade stance, including possible de-escalation with China. But the situation remains fluid and fresh developments on tariffs could undermine the market gains.
"There seems to be some potential for compromise on the tariff situation," which has supported the recent rally, said Michael Mullaney, director of global markets research at Boston Partners.
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But stocks will remain sensitive to "the news flow that day," Mullaney said. "If it's positive on tariffs, the market goes up. If it's negative on tariffs, the market goes down."
Investors are bracing for more twists and turns on trade after President Donald Trump this month paused many of the heftiest import tariffs on other countries until July. Trump's pullback came after his April 2 announcement of sweeping levies set off severe stock volatility and rattled the bond market.
