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Huge week of results, including Apple ( AAPL ), Microsoft ( MSFT ), Amazon ( AMZN )

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Monthly jobs data, PCE inflation report also on tap

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Tariff developments set to remain in market's focus

By Lewis Krauskopf

NEW YORK, April 25 (Reuters) - A packed upcoming week

for markets will test a U.S. stocks rebound, with investors

focused on a wave of corporate results led by Apple ( AAPL ) and

Microsoft ( MSFT ), while the prospect of global trade developments

threatens to cause volatility at any time.

The monthly U.S. employment report, data on first-quarter

U.S. economic growth and an inflation update add to the

potential market-sensitive events in the coming week, as

investors weigh whether the recent strength suggests the worst

of a tariff-induced equities tumble is over.

With the S&P 500 on pace for a solid week of gains,

the U.S. benchmark index has pared its recent slide by about

half but remains down some 10% from its February record high.

Sentiment for equities has been lifted this week by signals

of easing in the Trump administration's trade stance, including

possible de-escalation with China. But the situation remains

fluid and fresh developments on tariffs could undermine the

market gains.

"There seems to be some potential for compromise on the

tariff situation," which has supported the recent rally, said

Michael Mullaney, director of global markets research at Boston

Partners.

But stocks will remain sensitive to "the news flow that

day," Mullaney said. "If it's positive on tariffs, the market

goes up. If it's negative on tariffs, the market goes down."

Investors are bracing for more twists and turns on trade

after President Donald Trump this month paused many of the

heftiest import tariffs on other countries until July. Trump's

pullback came after his April 2 announcement of sweeping levies

set off severe stock volatility and rattled the bond market.

Tariff uncertainty will be a critical topic for upcoming

corporate reports.

About 180 S&P 500 companies representing over 40% of the

index's market value are set to post quarterly results in the

coming week, according to UBS. Chief among them are Apple ( AAPL )

, Microsoft ( MSFT ), Amazon ( AMZN ) and Meta Platforms ( META )

, four of the "Magnificent Seven" megacap tech and

growth companies whose shares have faltered in 2025 after

putting up massive gains the prior two years.

With over one-third of S&P 500 companies having reported,

profits are on pace to beat expectations for the period. S&P 500

earnings are on pace to have climbed 9.7% in the first quarter

from a year ago, up from an estimate of an 8% gain on April 1,

according to LSEG IBES.

"People were expecting the worst, and that typically happens

when markets retrench," said King Lip, chief strategist at

BakerAvenue Wealth Management in San Francisco. "But the numbers

really haven't been that bad."

Still, some companies have pointed to challenges ahead.

Consumer staples company Procter & Gamble ( PG ), soda and

snacks company PepsiCo ( PEP ) and medical equipment maker

Thermo Fisher all cut their annual profit forecasts.

Investors also will watch the extent to which the new global

trade regime is hitting economic data, with broad concerns the

new tariffs will drive up prices and slow growth.

Data in the coming week includes gross domestic product for

the first quarter, and the March reading of the personal

consumption expenditures price index, a key inflation reading.

The monthly U.S. jobs report, due on May 2, could provide

the biggest test for markets. The labor market has demonstrated

stability in recent months, and employment is expected to have

climbed by 135,000 jobs in April, according to a Reuters poll.

But doubts about the economic outlook are being fueled by

dour readings in consumer sentiment and other surveys, with

investors eager to see if such troubling "soft data" will

translate into weakness in reports seen as giving more concrete

evidence about the economy.

"If the consumer is going to be the engine of ongoing growth

in the U.S., it puts the burden of proof onto the jobs report,"

said Bob Savage, head of markets macro strategy at BNY.