Capital Markets Insights | 28 April - 2 May

Stock analysis and capital markets insights for smarter investing

Tzanis Koronaios

May 4, 2025

Dear Investoreans,

U.S. markets saw major swings this week. Stocks rallied, with the S&P 500 hitting its longest win streak since 2004, boosted by strong tech earnings and hopes for renewed China trade talks. However, Q1 GDP shrank for the first time since 2022, consumer confidence dropped to 2020 levels, and the trade deficit hit a record high.

Markets rebounded strongly this week, with the S&P 500 driven by positive sentiment in technology and growth sectors.
S&P500 almost erased the losses for the year as it closed at 5,686.67 on Friday, up 2.92% for the week, and YTD -3.31%.

GOLD

Gold prices retreated as investors shifted away from safe-haven assets amid easing tariff concerns and a rebound in equities. The decline reflected a broader market sentiment that trade talks might mitigate economic uncertainty, reducing demand for gold.

Gold futures closed at approximately $3,240.88 per ounce, down 2.37% for the week. YTD performance is at 23.52%.

WTI

WTI crude oil closed at approximately $58.17 per barrel, reflecting a significant weekly decline. WTI futures have dropped over 18% YTD, also marking one of the largest monthly declines since November 2021. The slump was attributed to global demand concerns, particularly from emerging markets like China and India, and a lack of investment in crude oil production, which constrained supply but failed to offset demand fears.

FOREX
The U.S. dollar dominated the forex markets as it rose 0.56% for the week driven by equity market gains. The euro was among the weakest currencies, and the EUR/USD pair closed at 1.1296 down -0.61% for the week. The euro’s weakness was attributed to concerns over European economic growth and a stronger U.S. dollar.

CRYPTO
Bitcoin closed the week 2% up at $95,690. The bounce in the markets didn’t have any significant impact to the cryptos for this week.

ECONOMIC CALENDAR

Consumer confidence index from the Conference Board dropped to its lowest since May 2020, signaling economic pessimism. Job openings data indicated a stable labor market.
GDP data showed a 2.7% contraction in Q1 2025, the worst since mid-2020, raising recession fears amid trade war concerns.
A better-than-expected U.S. jobs report alleviated recession concerns, supporting equity gains. China’s openness to trade talks further lifted sentiment.

The combination of weak economic data, robust corporate earnings, and shifting trade policy expectations created a volatile but ultimately positive week for markets, with investors closely watching upcoming trade negotiations and Federal Reserve actions.

This Week's Top Gainer in US Markets (excluding small caps under $2B market cap)

Company: HIMS (Hims Hers Health Inc)

Gain: 45.32%

Hims & Hers (NYSE: HIMS) soared 45.3% to $40.82 last week, driven by news of a long-term partnership with Novo Nordisk to co-market its weight loss drug, Wegovy. The deal gives users access to Wegovy through the Hims platform, bundled with 24/7 care and support. Investors also repositioned ahead of the company’s Q1 earnings, set to drop after market close on May 5. Hims previously sold a compounded version of Wegovy, which was pulled after the FDA confirmed adequate supply from Novo.

This Week's Top Loser

Company: HL (Hecla Mining Company)

Gain: -22.39%

Hecla Mining (NYSE: HL) dropped 17% to $4.54 on Friday after BMO Capital downgraded the stock to Market Perform and cut its price target to $5.50, citing ongoing issues at Keno Hill and uncertainty at Casa Berardi. Despite the dip, Hecla posted a strong Q1 with $28.7M net income and a 38% jump in sales to $261M. The stock also entered oversold territory with an RSI of 28.8.

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