#MarketPullback The market is experiencing a pullback, with the S&P 500 index down 0.82% and the Nasdaq composite index down 0.90%. This pullback is attributed to various factors, including ¹ ²:
- *Tariff uncertainty*: The US administration's tone on trade and tariffs has improved, but concrete progress is needed for sustained gains in markets and the broader economy.
- *Earnings growth*: First-quarter corporate earnings season has shown resilience, but guidance for the second quarter has weakened due to uncertainty around consumer spending and tariffs.
- *Economic growth*: The US economy experienced a surprise decline in GDP growth in the first quarter, but consumption remains relatively healthy.
Some analysts expect a further pullback, citing ³ ⁴:
- *Overbought conditions*: The market's recent rally has left it overbought, making a pullback more likely.
- *Jobs report*: The April jobs report will provide clues about whether the tariff turmoil is impacting the employment market.
However, others see opportunities in the current market, noting ⁵:
- *Investor confidence*: Australian investors have shown continued confidence in US equity ETFs, with Global X US 100 ETF recording its best month on record in April despite the market pullback.
- *Value in certain sectors*: Sectors like financials and healthcare may do well if policymakers make progress toward tax reform and deregulation.