Weekly Recap: Markets rebounded globally

Markets rebounded globally this week as investors reacted positively to steady interest rates, softer inflation signals, and strong earnings—especially in the tech sector. Australasia, however, painted a mixed picture as regional challenges weighed on sentiment.

As shown in the chart above, U.S. indices surged, while Australia's ASX 200 didn’t.

Key Themes Driving the week

Federal Reserve Signals Patience

The Fed held rates steady, emphasizing a “wait and see” approach in light of gradually easing inflation. Markets responded favorably to Jerome Powell’s reassuring tone, especially after recent fears of additional hikes.

April Jobs Report: Cooling, Not Crashing

Job growth slowed to 175,000 (vs. 235,000 expected), easing pressure on the Fed to act. Wage growth also decelerated slightly, aligning with a broader soft-landing narrative.

Tech Earnings Spark Rally

• Apple beat expectations with strong services revenue.

• Amazon’s AWS growth impressed.

• Meta and Microsoft both delivered strong guidance, especially in AI and cloud segments.

These results sent tech shares soaring and gave the Nasdaq its best week since early January.

Commodities & Energy

Oil prices slipped below $80/barrel due to easing geopolitical risks and rising inventories. This helped lower inflation expectations, further boosting equities.

Australasian Focus

Australia: Market Dips on Weak Sentiment

The ASX 200 fell 1.5% as retail, tech, and property sectors posted notable losses. Concerns about the impact of new U.S. tariffs on Chinese goods spilled over into commodity-linked stocks, dampening local investor sentiment.

That said, Australia’s monthly inflation remained flat at 2.5% in January, potentially setting the stage for rate cuts by the RBA later this quarter.

New Zealand: Holding Steady

The NZX 50 posted a modest 0.1% gain. While corporate earnings were largely muted, strength in utilities and telecommunications helped keep the index afloat.

Looking Ahead

• Inflation Watch: U.S. CPI and PPI data due next week could sway Fed expectations further.

• Earnings Winds Down: Mid-caps and regional banks will report—watch for consumer and credit trends.

• Asia-Pacific Developments: China trade data and Australia’s budget release will shape regional sentiment.

Final Takeaway

Markets breathed a sigh of relief this week as the Fed held rates, tech earnings impressed, and inflation showed signs of moderation. While U.S. indices appear poised for further gains, volatility remains in play—especially across Australasian markets navigating macro headwinds.