Latest Market Movements TodayMajor Indexes Retreat as Tariff Uncertainty Weighs on Sentiment
U.S. stock markets closed lower on Thursday, April 17, 2025, extending losses from the previous session as investors continued to grapple with concerns over President Trump’s tariff policies and their potential impact on the economy. The major indexes all posted significant declines, with technology stocks leading the downturn.
The S&P 500 fell 2.2% to 5,275.70, while the Dow Jones Industrial Average dropped 699.57 points, or 1.7%, to 39,669.39. The tech-heavy Nasdaq Composite was hit hardest, sinking 3.1% to 16,307.16.
Today’s selloff accelerated following Federal Reserve Chair Jerome Powell’s comments that Trump’s tariffs appear to be having a larger impact than initially expected, potentially slowing economic growth and raising inflation. Powell indicated the Fed would need more time to assess whether to adjust interest rates in response to these developments.
Tech Sector Under Pressure from Export Restrictions
The technology sector faced particular pressure today after major chip manufacturers announced significant financial impacts from new U.S. export restrictions to China. Nvidia (NVDA) dropped 6.9% after disclosing that U.S. government restrictions on its H20 chips could result in a $5.5 billion hit to its first-quarter results.
Similarly, Advanced Micro Devices (AMD) sank 7.3% after revealing that export limits could mean charges of up to $800 million for inventory and other costs. The semiconductor industry’s struggles highlight the growing economic consequences of escalating trade tensions between the U.S. and China.
Key Earnings Reports Shape Market Sentiment
Today marked a significant day in the first-quarter earnings season, with several major companies reporting results. UnitedHealth Group (UNH) released earnings before market open, with analysts expecting $7.27 per share, representing a 5.21% increase compared to the same quarter last year.
American Express (AXP) also reported today, with consensus estimates projecting earnings of $3.46 per share, a 3.90% increase year-over-year. The financial services company has consistently beaten expectations in recent quarters.
Taiwan Semiconductor Manufacturing Company (TSM), a key player in the global chip supply chain, reported earnings with analysts expecting $2.03 per share, representing a substantial 47.10% increase from the same period last year.
Upcoming Market Events to Watch
Investors are closely monitoring several upcoming events that could impact market direction in the coming days. The World Trade Organization recently warned that current tariffs could cause a 0.2% decline in global merchandise trade volume for 2025, with potential for a 1.5% contraction if conditions worsen.
Economic data releases will be crucial in assessing the impact of trade tensions on the broader economy. March housing data is due to be released, with economists forecasting declines in housing starts and permits, potentially signaling cooling in the real estate sector.
The earnings season continues to accelerate, with Netflix (NFLX) set to report results later today, though the streaming giant will no longer be reporting its quarterly subscriber numbers.
Market Outlook Amid Trade Uncertainty
The uncertainty surrounding trade policies has created a challenging environment for companies across industries. Many investors are bracing for a possible recession, with a Bank of America survey finding that expectations for an economic downturn are at the fourth-highest level in the last 20 years.
Treasury yields eased in the bond market following Powell’s comments, with the 10-year Treasury yield falling to 4.28% from 4.35% late Tuesday. This movement suggests investors are seeking safer assets amid growing economic concerns.
As markets navigate this period of heightened volatility, analysts recommend investors maintain diversified portfolios and prepare for continued fluctuations as trade negotiations and corporate earnings shape the economic landscape in the coming months.