S&P 500 Forecast: Tech and Materials Lead Sector Gains as Apple and JPMorgan Surge

Stocks Rebound in Midday Trade as Traders Digest Tariff Shock and Inflation Concerns

Stocks are climbing Friday afternoon, recovering from steep losses as traders recalibrate expectations around tariffs and inflation. The S&P 500 is currently up 1.9%, the Dow has gained over 700 points, and the Nasdaq is higher by 2%. This rebound follows a punishing Thursday session that erased much of Wednesday’s relief rally triggered by a temporary tariff reprieve.

Are Tariffs Driving the Latest Market Moves?

Markets remain on edge as the White House confirmed a new round of aggressive tariffs. A 145% tariff has been placed on all Chinese goods, far exceeding the 10% universal rate applied to other trading partners. In response, China raised duties on U.S. imports to 125%. Although a 90-day pause on some reciprocal tariffs offered brief relief, uncertainty persists, keeping volatility elevated. The VIX remains high, last seen around 44 after briefly surpassing 50 earlier in the week.

Which Sectors Are Leading the Midday Gains?

Nearly all major sectors are higher. Materials are up over 3% as metals and commodities rally. Technology has gained more than 2%, boosted by Apple and chip stocks. Energy is higher by 2.1% on renewed buying interest. Financials, industrials, and healthcare are also posting solid intraday gains. Consumer staples and utilities are ticking higher, reflecting some defensive positioning.

Which Stocks Are Making Notable Intraday Moves?

Apple is up nearly 4%, rebounding from recent losses tied to tariff fears. JPMorgan has gained more than 3% after reporting stronger-than-expected quarterly revenue. Morgan Stanley and BlackRock are also higher on earnings beats.

On the downside, Frontier Group is off 11% after slashing its outlook, while Stellantis is down 1% following weak shipment data.

Gold producers Barrick and Newmont are sharply higher—up more than 7% and 8%, respectively—tracking record spot gold prices. MicroStrategy is up 9% with bitcoin trading higher.

How Is Economic Data Playing Into Market Sentiment?

Economic signals are muddy. The latest University of Michigan consumer sentiment index came in worse than expected. Inflation expectations surged to their highest level since 1981. Separately, the EIA reported a 57 Bcf build in natural gas storage, well above the 5-year average of 17 Bcf, suggesting weak seasonal demand and weighing on energy fundamentals.

What’s the Outlook Into the Close and Beyond?

Traders will be closely watching into the final hours for any late-session tariff headlines or profit-taking after the rebound.

Despite today’s gains, the major indexes remain below early April levels, and tariff tensions continue to cloud the short-term view.

Next week’s focus will likely shift to inflation data and central bank commentary for further direction.

More Information in our Economic Calendar.