Last week’s economic narrative pivoted on easing trade frictions and solid earnings momentum.

With the Trump Administration pausing new tariffs and reopening negotiations, equities drifted higher while 76% of S&P 500 constituents beat earnings estimates by an average surprise of 9%. The lone blemish was the first‑quarter GDP print: U.S. output contracted at an annualized 0.3%, the first decline since 2022 and a sharp reversal from the 2.4% and 3.1% expansions recorded in the prior two quarters.

Looking ahead, markets will parse a dense calendar of macro catalysts next week. Progress—or setbacks—in tariff negotiations will remain front‑of‑mind, while the Federal Reserve’s upcoming interest rate decision takes center stage; futures pricing still implies another pause as policymakers weigh sticky inflation data. Investors will also scrutinize the April ISM Services PMI after March’s steep drop to 50.8, a reading below the 53 consensus that signaled the sector is flirting with stagnation.

Given this economic backdrop, let us see how this impacts the performance of various investment strategies.