From the desks of Stanley Katz & Lauren Madera
“APRIL HATH PUT A SPIRIT OF YOUTH IN EVERYTHING.” — WILLIAM SHAKESPEARE
The three major U.S. stock market indices delivered strong gains this week (i.e., DJIA: +2.48%, S&P 500: +4.59%, Nasdaq: +6.73%), continuing their recovery after a turbulent start to the year. This upward momentum comes amid a significant shift in market dynamics, with international stocks outperforming U.S. stocks by the largest margin in over two decades during Q1. Meanwhile, the once-dominant “Magnificent 7” tech giants have stumbled in 2025, falling dramatically from grace. BlackRock’s data shows these former market darlings posting a collective -15.7% loss this year, quite the reversal after their meteoric 269.4% rise over 2023-2024. Investor sentiment remains deeply bearish, with readings reaching levels that historically precede strong market rebounds. As one BlackRock chart wryly observes, “There is always a reason to sell” – yet markets have consistently climbed this proverbial wall of worry.
Corporate earnings season has taken on a distinctly cautious tone, as companies navigate what Argus Research describes as “the backwash of tariff uncertainty.” Executives seem to be channeling their inner meteorologists – technically making forecasts while hedging enough to never be completely wrong. Many companies are providing multiple scenarios for different economic outcomes, an approach last seen during early pandemic uncertainty. Despite these hedges, S&P 500 earnings are tracking for a seventh consecutive quarter of annual growth, albeit at a more moderate pace than previously expected. The economic picture remains decidedly mixed, with consumer and small business sentiment deteriorating sharply even as some inflation metrics show improvement. As Argus notes, “With uncertainty the only certainty right now, the risks of economic dislocation are rising” – making this market rebound all the more remarkable against such a complex backdrop.
Below are links to a number of third-party research reports that we have read and analyzed over the past week. We hope you will find the information interesting, useful, and worthwhile.
BlackRock:
Argus:
Nuveen:
Capital Group:
J.P. Morgan Asset Management:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
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