This week on the American markets is full of important signals from the labor market and corporate sector, with decisive publications ahead that could set the tone for the near future. Investors are closely analyzing contradictory data, trying to understand where the economy is headed and which sectors will benefit.
One of the key indicators attracting close attention right now is the labor market, specifically the data on job cuts announced by companies in April. There was quite an interesting dynamic here: the number of announced layoffs fell sharply compared to March – by as much as 62%. This, at first glance, is a positive signal showing a slowdown in the pace of layoffs right now. However, looking a bit wider, the picture becomes less rosy. The April figure is still 63% higher than it was in April of the previous year, and this, attention, is the highest April figure since 2020, not counting the anomalous April of 2020 when the pandemic began. Moreover, the total number of layoffs since the beginning of 2025 is also the highest since 2020. Companies announcing layoffs most often cite general economic uncertainty, the active implementation of new technologies (which may reduce the need for certain personnel), and a general wait-and-see position when assessing future prospects related to the development of the situation in international trade, supply chains, and consumer spending dynamics. Interestingly, layoffs have primarily affected the public sector (which is reportedly related to certain cost-cutting measures, even concerning specific things like DOGE), as well as the traditionally economically sensitive technology sector and retail. These reports on layoffs, available through specialized services, add an important touch to the portrait of the current state of the economy – mixed signals continue to come from the employment front.
In addition to macroeconomic indicators like employment data, the results of specific companies play a huge role, showing how businesses are coping with current conditions. This week has been marked by important corporate reports, especially from the technology sector. Investors eagerly awaited the results from two heavyweights after the market closed. And they did not disappoint! Microsoft and Meta Platforms exceeded market expectations in both profit and revenue. Microsoft shares soared more than 7% in after-hours trading, while Meta rose nearly 6%. Particularly strong results from Microsoft were linked to the continued growth of their Azure cloud segment, underscoring the importance of cloud technologies in the modern economy. At the same time, not everyone was lucky. Shares of Super Micro Computer, for example, fell by 11.5% due to weak preliminary results, while companies in other sectors, such as First Solar and GE HealthCare, were forced to lower their forecasts, directly citing current tariffs as the main obstacle for business. Mondelez, a food manufacturer, on the other hand, pleased investors by exceeding profit estimates. These contrasting results show that the impact of the current economic situation and factors such as technology adoption or trade barriers is very unevenly distributed across industries and companies.
The events of this week give food for thought, but the market is already looking ahead to new publications that may clarify the picture. In the near term, investor attention will be focused on new batches of statistics. On Thursday, we are expecting data on initial jobless claims – an important indicator of the state of the labor market that will add details to the picture outlined by the April layoff data. The manufacturing sector business activity index (ISM manufacturing survey) will also be released, showing how American industry is feeling. And on Friday, perhaps the most anticipated report of the month will be released – the employment data for April (Nonfarm Payrolls). All these releases will help the market better assess risks and understand how resilient the labor market is after the spike in layoffs at the beginning of the year. The remaining major corporate reports, primarily from Apple and Amazon, will also be important, as they can significantly influence market dynamics, especially considering the importance of the tech sector.
Thus, the market is currently in a state of waiting, analyzing contradictory signals from the labor market – where monthly improvement contrasts with high levels in year-over-year comparisons – and selectively strong corporate reports, while all attention is focused on the upcoming key economic data and results from the remaining tech giants. These publications may become the next catalyst for market movements.
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