Wall Street is bracing for another busy week as investors shift their attention to corporate earnings while tariff troubles keep markets on edge. Last week, stocks ended higher despite ongoing uncertainty over new U.S. tariffs on China. But concerns remain as the S&P 500 has dropped 6% since President Trump announced fresh duties on April 2.
Tech Stocks Jitter as Tariff Exemptions Disputed
Over the weekend, early reports suggested smartphones, laptops, memory chips, and processors might escape the latest round of tariffs. That gave tech giants like Apple (AAPL) and Nvidia (NVDA) a brief lift.
However, President Trump denied those claims on Sunday. In a post on Truth Social, he stated that these products remain under the 20% fentanyl-related tariffs and are now in a different tariff group. He added, “We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations.”
This back-and-forth is keeping markets volatile and tech investors wary.
Earnings Season Kicks Off Amid Uncertainty
This week, major U.S. companies are expected to report quarterly results. Investors will hear from Goldman Sachs (GS), Bank of America (BAC), Citi (C), Johnson & Johnson (JNJ), Netflix (NFLX), and Taiwan Semiconductor (TSM), among others.
Many firms are facing uncertain conditions. Delta Air Lines (DAL) has already pulled its yearly guidance. JPMorgan CEO Jamie Dimon described the economy as facing “considerable turbulence,” while BlackRock’s Larry Fink said fear about the market’s future is rising.
Kevin Gordon, a strategist at Charles Schwab, said, “It’s the murkiest environment you could be in outside of a pandemic.” He added that many companies may not offer guidance at all.
What’s Moving the Market?
Markets surged midweek after Trump paused some tariffs for 90 days. The Nasdaq Composite jumped more than 12%, its second-best day ever.
But just a day later, the White House confirmed that total tariffs on Chinese goods would rise to 145%, including previous duties. That news clashed with earlier messaging and sent the Nasdaq down 4.3%.
The Yale Budget Lab now estimates the effective tariff rate on Chinese imports has climbed from 22.5% to 27% since the April 2 announcement.
Consumer Data in the Spotlight
Retail sales data for March will be released on Wednesday. Economists expect a 1.4% increase, up from 0.2% in February. Sales excluding autos and gas are expected to rise 0.4%.
“Big-ticket spending in March and April could see a surge as consumers pull forward those purchases before tariffs take a significant bite,” Wells Fargo economists said in a client note. “After that, however, we are likely to see weaker consumer spending.”
These numbers are critical as economists grow more concerned about the risk of a recession. Growth in early 2025 has been weaker than expected.
Bond Market Adds to Investor Worries
Another red flag for investors is the bond market. The yield on the 10-year Treasury note (^TNX) soared last week, its biggest rise since late 2021. When yields climb above 4.5%, stocks often fall due to rising borrowing costs.
Michael Kantrowitz, chief strategist at Piper Sandler, called the recent spike “a new negative” in the market. “Higher interest rates at a time of economic uncertainty are just bad news, period,” he said.
David Rogal, a portfolio manager at BlackRock, noted that volatility is here to stay. “We’re in an environment where holding extra cash makes sense for flexibility,” he told Yahoo Finance.
Weekly Economic and Earnings Calendar
Monday, April 14
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Data: New York Fed one-year inflation expectations
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Earnings: Goldman Sachs (GS), FirstBank (FBK), MT&T Bank (MTB), Pinnacle Financial Partners (PNFP)
Tuesday, April 15
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Data: Empire manufacturing (April), Import Price Index (March)
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Earnings: Bank of America (BAC), Citi (C), Johnson & Johnson (JNJ), United Airlines (UAL), Rent The Runway (RENT)
Wednesday, April 16
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Data: March retail sales, NAHB Housing Market Index, industrial production
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Earnings: Abbott (ABT), ASML (ASML), Alcoa (AA), Progressive (PGR), US Bancorp (USB)
Markets will be closed on Friday, April 18, for Good Friday.
Looking Ahead
While corporate earnings may provide some clarity, investors are likely to remain cautious. With new tariffs still on the table, a shaky bond market, and growing fears of a slowdown, the next few weeks may remain bumpy.
