U.S. stock markets ended a turbulent April on a positive note, with the Dow and S&P 500 snapping a streak of uncertainty amid shifting economic and trade signals. Despite a weak first-quarter GDP report showing contraction, investors chose to look beyond short-term data distortions caused by tariff-related inventory buildup.

The Dow rose modestly to finish the month down 3.2%, while the S&P 500 eked out a slight gain on the final day, ending April just 0.8% lower. Both indexes recorded seven consecutive days of gains, their strongest run since late 2020. This resilience came amid large daily swings earlier in the month, prompted by the shock of new tariffs and aggressive trade policy shifts.

Market sentiment improved following policy adjustments, including a 90-day pause on reciprocal tariffs and exemptions on key tech imports. Although trade uncertainties linger and valuations remain high, the administration’s responsiveness has offered some reassurance. Investors have gravitated toward defensive sectors, reflecting cautious optimism in a still unpredictable environment.

The ability of markets to rebound sharply following volatility underscores the fragile but persistent investor confidence as economic and trade developments continue to shape market dynamics.