Weekly Market Update for April 25, 2025
Stocks seemed to move in the opposite direction as last week. On Monday, the S&P 500 kicked things off falling -2.4% before pulling out an ‘Uno Reverse card’ on Tuesday, rising 2.5%. Investors turned hopeful that US-China tensions had potentially peaked and that some progress was being made with various countries toward striking trade deals. The S&P 500 finished the full week up +4.6%, while the Nasdaq rose +6.7%. The 10-Year Treasury yield, an interest rate indicator, closed at 4.28%, down -5 bps from last week. The 6-Month US Treasury, a favorite of our US Treasury strategy, ended unchanged at 4.20%. Preferred securities also rose this week in light of the more sanguine economic chatter.
One of the keys to investing is not letting one’s emotions get the best of oneself. Too many individual investors let volatility shake them out of the market. Believe it or not, for all the unsteadiness one may feel this year has brought thus far, the S&P 500 is only down 6% year to date. From the April 8th low, the S&P 500 has bounced 10% higher. One of our priorities as an investment advisor is to help clients position appropriately and see through the volatile times – times which may continue until trade policy is ironed out.
In equity portfolio news, Google’s first quarter results surpassed analysts’ estimates, growing revenues by 12% y/y and operating profits by 20%. The company showed resilience in search advertising and Google Cloud services amidst the macro uncertainties, with management noting they had 1.5 billion users per month utilizing their AI Overview. The good results, along with a $70 billion share repurchase authorization, provided a boost to shares on Friday. The advertising result could also bode well for Meta.
Looking ahead to next week, many of the big technology companies’ earnings are on tap. This includes the likes of Microsoft, Meta (Facebook), Apple, and Amazon. These reports should provide insight into consumer spending and corporate capital investments. Additionally, a bevy of economic data points are slated to be released: job openings (JOLTS) for March and consumer confidence for April come Tuesday; CPE inflation and the initial estimate of Q1 GDP on Wednesday; some manufacturing data on Thursday; and then April’s employment report on Friday. Economists’ estimates for Q1 GDP growth vary widely, but are generally in the 0.0-1.0% range. Nonfarm payrolls are expected to have risen by 140,000 in April, after increasing by 228,000 in March.
The information contained in this commentary is not investment advice for any person. It is presented only for informational purposes. Included information has been obtained from sources considered reliable, but we do not guarantee that the foregoing materials are accurate or complete. Investors should contact Ulland Investment Advisors for individualized information prior to deciding to participate in any portfolio or making any investment decision. Ulland Investment Advisors does not provide tax advice. All investors are strongly urged to consult with their tax advisors regarding any potential investment. Performance quoted is past performance. Past performance is not indicative of future performance. There is always a possibility of loss.
Current performance may be lower or higher than performance shown. Differences in performance versus the indices/funds may be attributable, in part, to differences in the asset make-up of the strategy vs. the indices/funds. Performance calculations are based on the reinvestment of dividends and gains unless these amounts were paid out to the client. Performance is subject to revision. See www.ullandinvestment.com for important strategy disclosures.
This does not constitute a recommendation of any investment strategy or product for a particular investor. Investing involves risk; principal loss is possible. Investors should consider the investment objectives, risk, charges, and expenses of the strategy carefully before investing. This and other important information can be obtained by contacting Ulland Investment Advisors at www.ullandinvestment.com or 612.312.1400.
