10 Things Traders Need to Know Next Week
It was a range-bound week in the market… but there was still some excitement including:
- The ongoing trade war with China
- The U.S. banning Nvidia (NVDA) from selling its chip in China
- Big bank earnings
- Mark Zuckerberg's Meta Platforms (META) antitrust hearing
- UnitedHealth's (UNH) plunge after earnings
- Eli Lilly's (LLY) surge on trial success for its new weight loss pill
So let's dig in to the 10 Things You Need to Know Happening In The Markets Next Week
1. Will the U.S. make a deal with China?
During a meeting with the Italian Prime Minister at the White House on Thursday, President Trump told reporters, “Nobody can compete with us…you will see we will make a very good deal with China.”
President Trump on China: “Nobody can compete with us…you will see we will make a very good deal with China.” pic.twitter.com/XNjHSygUmj
— Trump War Room (@TrumpWarRoom) April 17, 2025
So far, the trade war with China has been contentious with Beijing retaliating with its own tariffs.
But the market seems to be less rattled by the tariff turmoil as time goes on.
2. Fed In Focus
The Philadelphia Fed, Chicago Fed, and St Louis Fed Presidents are all scheduled to speak next week. Plus, Fed Governor Christopher Waller.
The market is looking for more clarity on the Central Bank's future plans after Chairman Jerome Powell signaled they are well positioned to wait and see the impact of tariffs before cutting rates.
Powell said on Wednesday, “We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension.”
President Trump meantime continues to demand rate cuts. In a post on Truth Social, he referred to the Chairman as “Too Late” Jerome Powell and seemed to hint he may be considering terminating him:
Trump originally nominated Powell to the position on November 2, 2017 and his term is set to end in May 2026.
The Fed also releases its Beige Book on Wednesday which gives the market a look at economic conditions across all 12 Fed districts.
3. Big Tech Earnings Are Starting
Earnings will pick up steam next week with some big tech names in the mix.
The question for the market remains centered around future outlook and how many companies will pull their guidance due to tariff uncertainty.
Taiwan Semiconductor (TSM) maintained its full-year outlook on Thursday after beating Q1 expectations on the top and bottom line.
Here's what names to have on your radar next week:
- Tuesday: 3M (MMM), Tesla (TSLA)
- Wednesday: Boeing (BA), Lam Research (LRCX), IBM (IBM), Chipotle Mexican Grill (CMG)
- Thursday: Alphabet (GOOGL), Intel (INTC)
How will these names move? Well, it all depends how the stock is trading headed into the report.
4. Is The Bond Market Back to “Normal”?
Action in the U.S. bond market seemed to be much healthier last week after talk that something was “broken” in the week before.
Is the sell-off of U.S. Treasuries over? Only time will tell.
For now, the 10-year yield is hovering around 4.3% after falling as low as 3.9% at the start of the tariff drama.
5. Is The Housing Market Stalled?
We will get updated data on the housing market next week with New Home Sales and Building Permits on Wednesday and Existing Home Sales on Thursday.
The recent volatility in the Treasury market has directly impacted mortgage rates as they follow the 10-year Treasury yield.
As of Thursday morning, Mortgage News Daily showed the average 30-year fixed mortgage rate just under 6.9%.
The Mortgage Bankers Association reported an 8.5% drop in total mortgage application volume last week as rates spiked from 6.61%.
That drop came even as active inventory increased by 30%, a bad sign for sellers.
MBA said more buyers are opting for riskier adjustable-rate mortgages, with the ARM share of mortgages at 9.6% — the highest since November 2023.
6. Gold Takes A Breather… After Hitting New Record
Gold prices continued to spike last week, hitting another fresh record high of $3,357.57 on Wednesday.
But on Thursday prices pulled back as investors appeared to book profits ahead of the long weekend.
It's hard in this market to hold anything over a long weekend, knowing the President could announce progress on trade talks or even a new trade deal at any moment.
Other metals also pulled back on Thursday including Silver, platinum, and palladium.
7. Consumer Sentiment Update
The University of Michigan releases its final Consumer Sentiment Survey for April on Friday.
That reading is expected to be unchanged from 50.8 originally.
That's the lowest level for the index since June 24, 2022.
The market — and the Fed — are focused on consumers' inflation expectations with the new tariffs.
8. The VIX Has Pulled Way Back
The VIX has dropped below 30 after peaking above 60 on April 8… does that mean the bottom is already in?
The market was very boring at times for active traders last week due to the lack of volatility.
Treasury Secretary Scott Bessent told Bloomberg, “If we measure uncertainty by the VIX… I think the VIX spiked and has likely peaked.”
Will volatility pick back up with earnings this week and the possibility of new trade deals?
CNN's Fear & Greed Index still shows Extreme Fear driving the market now:
9. Will XBI Continue to Outperform?
Biotechs outperformed other major sectors in the market over the past week.
Since April 10, XBI is up 6.08% while XLE is up 5.86%, XLF is only up 1.64%, and SMH is down 1.84%.
Will that strength continue next week?
10. Is Palantir Set to Breakout
Many traders are focused on Palantir (PLTR) for a breakout play.
The stock closed just under $94 on Thursday.
Is this at a discount here? PLTR has been outperforming the entire MAG7 group, despite being overvalued on a forward P/E basis.
This name seems to bucking the “revaluation of stocks” thesis that's going around.
Have a great long weekend!
P.S. Want to learn how to trade with X-Ray Vision? Check out JR’s Romero's Tape Reading Course. It’s LIVE this weekend!
ATTN: Serious Options Traders
There Is Just ONE Epic Trade Every Week