Weekly Market Highlights. April 20 – April 26.

Market News |

Here’s a quick recap of last week’s events (April 20 – April 26) in the US stock market. From major index movements to key economic events, stay informed about the trends that matter to halal investors like you.

Market Overview

U.S. Equities Rise on Optimism Around Trade and Earnings

  • Markets rallied on signs that U.S.-China trade tensions may be cooling, and constructive headlines with other trading partners added to positive sentiment.
  • Trump’s softened stance on Fed Chair Powell also contributed to market stability.
  • The Nasdaq led the gains, bouncing back sharply from the prior week, while small- and mid-cap stocks posted a third straight week of gains.
  • Light trading volumes suggested some investor caution remained in the background.

Earnings Boost Sentiment

  • Positive earnings surprises added to the rally: 73% of S&P 500 companies beat Q1 estimates, per FactSet.
  • This helped reinforce confidence amid concerns over economic growth and trade disruption.

Economic Growth Slows, Especially in Services

  • S&P Global’s Flash PMI fell to 51.2, a 16-month low, dragged down by a sharp slowdown in services activity.
  • Manufacturing ticked up slightly (50.7), but business optimism hit its lowest since July 2022.
  • Prices for goods and services rose at their fastest pace in over a year, driven largely by tariffs.

Durable Goods Jump, But It’s All Planes

  • Durable goods orders surged 9.2%, led by a massive spike in aircraft orders (+139%) as companies rushed to get ahead of tariffs.
  • Ex-transportation, however, orders were flat, suggesting broader business investment remains tepid.

Home Sales Hit 15-Year Low for March

  • Existing home sales fell 5.9%, the biggest drop since late 2022, as high mortgage rates and affordability continued to deter buyers.
  • Sales came in at their lowest March level since 2009.
  • Despite the weak activity, mortgage delinquencies remained historically low, a sign of market stability.

Consumer Sentiment Drops Again

  • University of Michigan sentiment index dropped to 52.2, down 8% from March and the fourth consecutive monthly decline.
  • Expectations fell 32% since January, the sharpest 3-month drop since 1990.
  • Inflation expectations surged to 6.5%, the highest since 1981, raising red flags for the Fed and consumers alike.

Key Takeaways & Market Outlook

  • Markets rebounded on de-escalation hopes in trade and strong earnings results.
  • Business activity is weakening, especially in the services sector, while inflation pressures remain elevated.
  • Durable goods strength was narrow, driven by aircraft, masking broader investment hesitation.
  • Housing and consumer sentiment remain under pressure, highlighting persistent affordability and inflation concerns.

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