Market Roundup: What Happened Yesterday and What Awaits Us Today (April 29):

US equities pulled back on Tuesday, giving up part of the previous session’s record-setting momentum as rising oil prices and mixed corporate earnings dampened sentiment. The S&P 500 fell 0.5%, while the Nasdaq Composite dropped 0.9%, pressured by weakness in technology stocks. The Dow Jones Industrial Average edged down 0.1%, a modest decline following fresh highs for the broader market just a day earlier.

Markets are now squarely focused on the Federal Reserve, which has begun its two-day policy meeting. Expectations remain firm that rates will be held in the 3.5%–3.75% range, with investors looking beyond the decision itself to signals on the future rate path.

Earnings delivered a mixed picture. Coca-Cola rose around 4% on strong results, while Spotify plunged 12% and UPS fell roughly 4% after disappointing updates. In the tech space, Nvidia slipped 1.6% after recent gains, as investors braced for results from Alphabet, Amazon, Meta Platforms, Microsoft, and Apple.

Sentiment was further shaken by reports of slowing growth at OpenAI, raising questions about the sustainability of massive AI-related capital expenditure. This weighed on associated names, including Oracle and other chip and data centre firms.

In commodities, oil surged amid escalating geopolitical tensions, particularly around the Strait of Hormuz and the UAE’s exit from OPEC. West Texas Intermediate climbed 3.7% to near $100 a barrel, while Brent Crude rose 2.8% above $111. Rising energy prices added to inflationary concerns, pushing the 10-year US Treasury yield up to 4.36%.

Elsewhere, gold fell 1.8% to around $4,610 per ounce, Bitcoin slipped to $76,200, and the US dollar index ticked higher to 98.66. Trade policy also remained in focus, with tariff impacts continuing to filter through pricing data despite partial rollbacks.

Market Outlook

Markets are likely to remain volatile in the near term, with investor attention fixed on Big Tech earnings and signals from the Federal Reserve. Elevated oil prices may continue to pressure equities, particularly in growth sectors sensitive to costs and interest rates. At the same time, concerns over the sustainability of AI-driven spending could introduce further rotation within the technology sector, keeping sentiment fragile in the short term.