Positive quarterly reports from major US companies to support S&P 500 rebound — Reuters

This week, full of key economic events, is set to influence the US stock market. The S&P 500 index has managed to recover some of its recent losses, but still remains 10% below its February high, according to Reuters. The release of employment statistics, the US GDP for the first quarter, the personal consumer expenditures (PCE) price index, and corporate reports from tech giants like Apple and Microsoft will provide investors with fresh insights.

However, the US stock market will remain sensitive to changes in Donald Trump's tariff policies. According to Michael Mullaney, an expert at Boston Partners, a de-escalation of trade tensions between the United States and China will have a positive impact on the S&P 500 index, while escalating confrontation between the world’s two largest economies may accelerate its decline.

UBS reports that about 180 companies representing more than 40% of the S&P 500's market value will release their quarterly reports in the coming week. One-third of the firms included in the index have already reported their results, with most of them exceeding traders' expectations. Yet businesses are wary of a potential downturn, given the growing challenges they face.