Stocks Maintain Bullish Strength. Can They Continue to Gain?
The stock market has remained positive for two consecutive days, which is an anomaly compared to its behavior the last couple of weeks. Is it possible for the bullish trend to keep going?
The Dow Jones gained another 312 points on Monday, continuing its upward momentum with a 0.78% increase. The Nasdaq gained 0.64%, and the S&P 5000 climbed by 0.79%. These were minor increases, but they continued the significant bullish movement from Friday after President Trump announced a pause to many tariffs and said that there would be no tariffs imposed on many tech items.
There are a number of earnings reports to be released this week, including reports from Citibank, Johnson & Johnson, and others. It will be interesting to see how they predict their next quarter will go in light of the instability created in the stock market by Trump’s changing tariff policies.
Earnings Reports May Not Boost Market
We have already seen earnings reports from JPMorgan Chase, Bank of America, and Goldman Sachs this week, and what is noteworthy is that none of their better-than-expected earnings reports for the first quarter have moved the needle on the stock market.
It appears that the stock indices are more heavily influenced at the moment by tariff policy and how that is changing. Without any new tariff information to digest on Monday, the market moved little but kept its upward momentum. It could continue to do so for Tuesday, although the bullish trend is likely to be slight.
Even if more of the major financial stocks show promising quarterly results, we expect that their success will do little to move the overall stock market. However, their positive earnings should help to keep the stock market moving in a positive direction and keep it from falling back.
The U.S. jobs market looked strong in March but could hit a bump in April as tariffs continue to take their toll. Even with a pause on many tariffs and many financial institutions looking strong, companies may be looking to lay off employees to brace for further tariffs news to come.
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