US Stocks Poised for Gains as Q1 GDP and Apple Earnings Approach

As the first quarter of 2025 draws to a close, investors are eagerly anticipating the upcoming GDP report and Apple's earnings release. With the S&P 500 up nearly 3% year-to-date, and the Nasdaq Composite ending moderately higher on Wednesday, the stage is set for potential gains in the U.S. stock market. According to Ryan Detrick, the chief market strategist at Carson Research, the "higher January" phenomenon bodes well for the rest of the year, with the S&P 500 historically up 12.2% on average and 86.7% of the time when January is higher.



The upcoming Q1 GDP report, scheduled for release on Thursday, April 25, will provide crucial insights into the economy's performance amid various challenges. A strong GDP growth rate could boost investor confidence, leading to increased market optimism and potentially higher stock prices. Conversely, a weak GDP growth rate could dampen investor sentiment, leading to market sell-offs. Key indicators to monitor include real GDP growth, personal consumption expenditures (PCE) deflator, gross private domestic investment, net exports, and government consumption expenditures and gross investment.



Tech earnings could also come to the market's rescue on Thursday, with all major index futures currently trading higher. Apple Inc. (NASDAQ:AAPL) is expected to report quarterly earnings after the closing bell, with analysts expecting earnings of $2.35 per share on revenue of $124.13 billion. The tech-heavy Nasdaq Composite, despite giving back most of its early gain in the afternoon on Wednesday, ended moderately higher for the session, suggesting that the tech sector is likely to continue driving gains in the coming months.



Investors should keep an eye on the first-quarter GDP report and Apple's earnings release, as these events could significantly influence market performance and investor sentiment. With the "higher January" phenomenon historically boding well for the rest of the year, and the tech sector expected to drive gains, the U.S. stock market appears poised for a strong performance in the coming months. However, it is essential to remember that past performance is not indicative of future results, and market conditions and investor sentiment can change rapidly. By staying informed and monitoring key indicators, investors can better navigate the market and make informed decisions about their portfolios.