#MarketPullback

Global Economic Uncertainty The US economy's GDP growth turned negative in the first quarter, partly due to a surge in imports ahead of potential higher tariff rates. However, consumption remains relatively healthy.

Trade and Tariff Concerns: Ongoing trade tensions and potential tariff hikes are causing market volatility. Investors are closely watching for signs of progress in trade deals, particularly between the US and China.

Corporate Earnings: Recent earnings reports have been mixed, with some companies like Amazon and Apple missing expectations or providing cautious guidance. However, tech giants like Microsoft and Meta have shown resilience.

Some key market indicators to watch include² :

S&P 500* Down 0.70% with a current price of 5649.80

Nasdaq: Down 0.69% with a current price of 19974.20

Despite the market pullback, some investors see opportunities:

Aussie investors are diving into US equity ETFs*, with Global X US 100 ETF recording its best month of net flows in April, despite the "sharp sell-down" in the US market.

Covered call strategies are also gaining traction, with the Global X S&P/ASX 200 Covered Call Complex ETF accumulating $25 million in net flows.

Looking ahead, experts expect:

Interest Rate Cuts: The Federal Reserve is likely to cut interest rates later this year, which could support market sentiment.

Earnings Growth: Corporate earnings growth is expected to remain in the low or mid-single-digit range for 2025 and potentially rebound in 2026.