What’s likely to move the market in the next trading session

Friday’s Big Stock Stories: What’s Likely to Move the Market in the Next Trading Session
Stocks resumed their losing ways on Thursday, as the 30-stock Dow slid 1,000 points and shed a chunk of Wednesday's big gains. What Orlowski Financial Counsel is watching Friday.

By Steven Orlowski, CFP, CNPR
Orlowski Financial Counsel
April 10, 2025

After a short-lived relief rally midweek, U.S. equities took a sharp turn lower on Thursday, with the Dow Jones Industrial Average plunging 1,000 points — a stark reversal that erased much of Wednesday's optimism. The selloff, driven by a combination of hotter-than-expected inflation data and renewed fears over monetary policy tightening, reignited investor concerns about the health of the U.S. economy and corporate earnings resilience.

As Wall Street heads into Friday's trading session, investors are bracing for more volatility. Here's what Orlowski Financial Counsel will be watching closely:

1. Producer Price Index (PPI) – March Data

After Thursday’s troubling Consumer Price Index (CPI) numbers showed inflation remaining stubbornly high, Friday’s PPI report is likely to further influence market sentiment. A hotter-than-expected PPI would reinforce expectations that the Federal Reserve may keep interest rates elevated longer than markets had anticipated.

“Sticky inflation is the market’s main enemy right now,” said a senior strategist at Orlowski Financial Counsel. “If PPI shows upward pricing pressure at the wholesale level, it could spook the market further and drive another risk-off day.”

2. Earnings Season Kickoff: Big Banks in Focus

Friday also marks the unofficial start of Q1 earnings season, with major financial institutions including JPMorgan Chase, Citigroup, and Wells Fargo reporting before the bell. Expectations are mixed, with analysts watching for signs of margin pressure, loan growth deceleration, and shifts in consumer behavior.

Orlowski Financial Counsel is particularly focused on forward guidance.

“Banks are the market’s canary in the coal mine,” the firm noted in its pre-market commentary. “We’ll be watching credit quality, loan loss provisions, and management commentary on consumer and corporate balance sheets. That will shape the narrative for the next few weeks.”

3. Federal Reserve Speeches

Two key Fed officials are scheduled to speak on Friday, and markets will be listening for any policy clues. With futures markets now pricing in a higher likelihood of a June rate hike, any dovish or hawkish tones could amplify market moves.

“Right now, even a small shift in Fed language can whipsaw the market,” Orlowski added. “Investors are hypersensitive to every word.”

4. Geopolitical Risks

Persistent tensions in the Middle East, ongoing conflict in Ukraine, and uncertainty in the Taiwan Strait continue to add a layer of risk. On Thursday, oil prices briefly spiked on news of potential retaliatory action in the Gulf region, which added to inflationary fears.

“We’re watching commodities, especially energy and agricultural prices, as geopolitical uncertainty can be a powerful inflation wildcard,” said Orlowski analysts.

5. Technical Breakdown – Key Support Levels in Play

Thursday’s sharp drop dragged the S&P 500 below its 50-day moving average, a key technical level that many investors view as a barometer of medium-term momentum. Should Friday bring further losses, analysts warn the next support zone near 4,950 could be tested quickly.

“We’re not in panic territory yet,” Orlowski said, “but if these technical levels fail to hold, algorithmic selling could accelerate.”

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The Bottom Line: Buckle Up

Friday’s session is shaping up to be a critical one. Between fresh inflation data, major bank earnings, and potential Fed signals, investors should be prepared for more market-moving headlines.

“At Orlowski Financial Counsel, we’re staying nimble,” the firm said. “We’re maintaining core allocations, raising selective cash positions, and positioning portfolios for both volatility and opportunity.”

Markets may be losing their footing, but informed investors can still find solid ground.