Equities Rose Last Week on Trade Hopes

Wall Street enjoyed a solid week of gains as investors were encouraged by signs of progress in the U.S.-China trade dispute. Each of the major benchmark indexes moved higher, driven by gains in artificial intelligence (AI) megacaps and some blue-chip stocks. First-quarter earnings season is in full swing. Of the 180 S&P 500 companies reporting so far, 73% beat expectations. Ten of the 11 market sectors posted weekly advances, with the exception of consumer staple companies, which dipped about 0.73%. Last week didn’t begin on a favorable note, as stocks closed sharply lower on Monday after President Trump continued his criticism of Federal Reserve Chair Jerome Powell. The dollar index fell to 98.2 on Monday, the lowest rate since February 2022. However, as trade tensions eased, stocks posted gains over the next four days. Long-term bond yields fell for the second straight week. Persistent oversupply concerns and uncertainty over the U.S.-China trade talks pulled crude oil prices lower.

New-Home Sales Accelerated in March

Sales of new single-family houses in March were 7.4% above the February rate and 6.0% above the March 2024 pace. The estimate of new houses for sale at the end of March was 0.6% above the February estimate and 7.9% above the March 2024 rate. This represents an inventory of 8.3 months at the current sales pace. The March inventory estimate was 6.7% below the February figure but 1.2% above the March 2024 estimate. The median sales price of new houses sold in March was $403,600. This was 1.9% below the February price of $411,500 and 7.5% below the March 2024 price of $436,400. The average sales price of new houses sold in March 2025 was $497,700. This was 1.0% above the February 2025 price of $492,700 but 4.7% below the March 2024 price of $522,500.

Eye on the Week Ahead

The last week of April brings with it the release of several potentially market-moving reports. The initial report on gross domestic product for the first quarter of 2025 is released. The economy expanded at an annualized rate of 2.4% in the fourth quarter of 2024. The March report on personal income and expenditures is out midweek. February saw personal income grow 0.8% and consumer spending rose 0.4%, while prices for goods and services climbed 0.3%. Finally, the April jobs report is available at the end of the week. Employment rose by 228,000 in March, while the unemployment rate ticked up to 4.2%.