Market Monitor April 23 ( Tesla, Apple, 3M UP, RTX, Northrop Grumman DOWN)

Wall Street Rebounds Sharply on Trade Optimism and AI Buzz, Despite Tesla’s Struggles

After a rough start to the week, U.S. markets bounced back strongly on Tuesday, fueled by optimism over a potential de-escalation in the U.S.-China trade conflict and growing enthusiasm around AI innovation, particularly at Apple.

The Dow Jones and Nasdaq both surged 2.7%, while the S&P 500 gained 2.5%, recovering much of Monday’s losses.

Trade Tensions Easing?

Markets got a significant lift from comments reportedly made by U.S. Treasury Secretary Scott Bessent at a private JPMorgan investor event.

According to Bloomberg, Bessent signaled that the current trade tensions with China are unsustainable and that he expects them to ease in the near future. While no formal trade agreement has been reached, his remarks sparked hope that a resolution could be on the horizon.

This change in tone followed a sharp sell-off on Monday, triggered by renewed attacks from President Donald Trump on Federal Reserve Chair Jerome Powell. However, Trump appeared to tone down his rhetoric on Tuesday, stating he has “no intention of firing Powell,” temporarily calming investor fears over Fed independence.

Still, Trump reiterated his desire for lower interest rates and suggested Powell could become a scapegoat if the economy slips into recession due to tariffs.

Tech Stocks Surge on AI Momentum

Big tech stocks led Tuesday’s rally. Apple (AAPL | +3.41%) rose 3.4% after Morgan Stanley highlighted strong consumer interest in the company’s AI platform, Apple Intelligence.

A survey revealed that 51% of U.S. iPhone users plan to upgrade their device within a year, the highest ever recorded, fueled by expectations of AI-driven innovations. Analysts believe AI subscriptions could eventually generate tens of billions of dollars in annual revenue for Apple.

Other tech names also soared:

Amazon: +3.5%

Meta Platforms: +3.22%

Alphabet: +2.7%

Microsoft: +2.14%

Nvidia: +2.04%

Earnings Spotlight: Mixed Signals from Corporates

While sentiment improved, earnings results painted a mixed picture:

Tesla (TSLA | +4.6%) fell under pressure as net profit plunged 71% in Q1, with sales declining sharply across the U.S., China, and Germany. Analysts blamed not only increased competition but also a reputational hit tied to Elon Musk’s political affiliations. Revenue dropped 9% year-over-year, while operating margins fell from 5.5% to 2.1%.

3M (MMM | +8.12%) jumped 8.5% after reaffirming its full-year profit forecast despite tariff concerns. Analysts praised the company’s resilience and margin performance.

GE Aerospace (GE | +6.07%) rose 6.1% on stronger-than-expected profits and confirmed guidance.

RTX (RTX | -9.81%) and Northrop Grumman (NOC | -12.66%), both defense contractors, saw double-digit stock declines following disappointing sales results. RTX expects an $850 million hit from the trade environment.

Kimberly-Clark (KMB | -1.53%) dropped 1.5% after lowering its full-year outlook due to weaker margins and trade uncertainty.

Halliburton (HAL | -5.57%) lost 5.6% amid revenue and earnings declines, citing pressure in energy markets.

Currency, Commodities & Rates

• The U.S. dollar regained some ground after Trump dialed back attacks on the Fed but still trades near multi-year lows.

• Gold surged past $3,500 per troy ounce, a new all-time high, as central banks seek to reduce dependency on the dollar.

• Oil prices also rose, with WTI crude up 1.9% and Brent up 1.8%, driven by easing geopolitical fears and potential trade stabilization.

• The euro eased slightly to 1.1420 USD, after spiking Monday to its highest level since 2021.

Market Outlook

Investors welcomed a more constructive tone on trade and signs of political restraint, providing a breather after Monday’s panic. However, ongoing volatility in earnings, persistent inflation risks, and uncertainty over U.S. monetary policy continue to loom.

With AI-driven optimism driving tech and geopolitical dynamics in flux, the path ahead remains bumpy—but not without opportunity.

Daily Market Analysis – April 22, 2025 (After Market Close)

Short Term Trend

SPY (S&P 500 ETF)

• Short-Term Trend: Down (no change)
• Support at $500
• Resistance at $550
• Volume: at average (50)
• Pattern: short-term bullish reversal (gap down from yesterday was closed), prelude to first higher low in downtrend (?)

QQQ (Nasdaq-100 ETF)

• Short-Term Trend: Down (no change)
• Support at $415
• Resistance at $466
• Volume: at average (50)
• Pattern: short-term bullish reversal (gap down from yesterday was closed), prelude to first higher low in downtrend (?)

IWM (Russell 2000 ETF)

• Short-Term Trend: Down (no change)
• Support at $170
• Resistance at $197
• Volume: at average (50)
• Pattern: /

Long Term Trend

SPY (S&P 500 ETF)

• Long-Term Trend: Down (no change)

QQQ (Nasdaq-100 ETF)

• Long-Term Trend: Down (no change)

IWM (Russell 2000 ETF)

• Long-Term Trend: Down (no change)

Market Breadth Analysis for April 21, 2025 (After Market Close)

1. Strong Rebound on April 22, 2025: Broad-Based Buying Resumes

After a steep market sell-off on April 21, breadth numbers on April 22 showed a powerful reversal:

• Advancing stocks surged to 86.8%, while only 11.6% declined.

• 10.7% of stocks gained more than 4%, indicating strong momentum participation.

Moving average breadth improved:

• SMA(20)+ jumped to 35.2%, from 22.2% the day prior.

• SMA(50)+, SMA(100)+, and SMA(200)+ also ticked higher, though remain historically weak (still below 21%).

→ Despite the sharp bounce, technical breadth metrics still show a majority of stocks trading below key moving averages, reflecting an underlying weak trend structure—but improving.

2. Short-Term Momentum Turning, But Long-Term Weakness Persists

Despite the bullish action on April 22:

• Only 20.9% of stocks are above their 200-day moving average.

• Advancers over the last month remain at just 16.6% versus 83.1% decliners.

• Over 3 months, only 3.5% of stocks are up more than 25%, while 22.8% are down that much or more.

→ These numbers suggest the current market remains in a broader downtrend, despite the recent bounce.

3. Weekly Trends: Mixed but Improving

• Advancing Week-to-Date: 55.1% (up from 49.4% the day before).

• Declining Week-to-Date: 43.8%

• Participation (PP): 3.5% – slight uptick in breakout momentum.

→ Though the week started rough, breadth recovery is now underway.

4. Summary & Outlook

April 22 shows strong bullish breadth - the best in at least 7 sessions. Yet most breadth indicators - especially on a monthly and quarterly basis - continue to point to a weak or deteriorating underlying market.

Investors should view the recent bounce as a tactical rally within a broader, possibly corrective phase unless we see sustained improvement in the breadth of the moving averages and longer-term momentum.