To The Moon

Against the backdrop of weak economic growth prospects, renewed attention on China-U.S. trade talks boosted global market sentiment.

🇺🇸 S&P 500 Index: +1.48%

🇺🇸 Nasdaq Index: +1.51%

🇪🇺 Stoxx 600 Index: +1.72%

🇯🇵 Nikkei 225 Index: +1.04%

🇭🇰 Hang Seng Index: +1.74%

🇨🇳 CSI 300 Index: Closed

🇸🇬 Straits Times Index: +0.46%

U.S. stocks rose, with both the S&P 500 and Nasdaq Composite up by 1.5%. The Nasdaq posted its second consecutive weekly gain, driven by strong economic data and easing U.S.-China trade tensions.

U.S. non-farm payroll data showed the economy added 177,000 jobs in April, exceeding expectations, while the unemployment rate remained steady at 4.2%.

Asia-Pacific markets cheered, with the Hang Seng Index rising 1.7% as optimism over trade talks improved sentiment. This helped ease U.S.-China relations and boosted regional confidence. Surging large-cap tech stocks from recent earnings reports also supported the market.

Upcoming Events:

Monday: Final U.S. Services PMI and ISM Services PMI data

Tuesday: Final Caixin Services PMI (China) and Eurozone Services PMI

Wednesday: Eurozone Retail Sales (MoM)

Thursday: U.S. Fed Funds Rate Decision, Unemployment Claims, Bank of Japan Meeting Minutes, Malaysia's OPR decision and YoY Industrial Production data

End of the week: Malaysia's unemployment data and a series of FOMC member comments

Things to Know Today:

1. Apple $Apple(AAPL)$   warned it may face a $900 million tariff impact this quarter. Its revenue from Greater China (mainland China, Hong Kong, and Taiwan) fell 2.25% YoY to $16 billion due to continued domestic competition and trade tensions in its second-largest market.

Apple

2. The Federal Reserve is closely monitoring the labor market for signs of stress. April's stronger-than-expected job growth and stable unemployment reassure the Fed of labor market resilience, despite President Trump's erratic trade policies.

3. Trump proposed a $163 billion cut in next year's federal budget, aiming to reduce spending on education, housing, and medical research while boosting defense and border security. This includes a nearly 65% increase in Homeland Security funding and a 23% cut in non-defense discretionary spending, bringing it to the lowest level since 2017.

4. Trump reiterated on Friday that the U.S. economy is undergoing a transformation, citing strong employment and his tariff plans, while again urging the Federal Reserve to lower interest rates.

Trump

5. Warren Buffett will step down as CEO of Berkshire Hathaway $Berkshire Hathaway(BRK.A)$  $Berkshire Hathaway(BRK.B)$  this year. Vice Chairman Greg Abel will take over by year-end. The announcement was made during Berkshire Hathaway's annual shareholders meeting in Omaha.

Buffett and Greg Abel

Key Takeaways:

Despite the unpredictability of Trump's trade policies, last week's earnings reports showed resilience among tech giants like Microsoft $Microsoft(MSFT)$   and Meta $Meta Platforms, Inc.(META)$  , providing relief to markets. The tech-heavy Nasdaq 100 extended a two-week rally, rising 10% and trading nearly 3% above its April 2 close.

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