Market Recap: Wall Street Retreats as Investors Brace for Big Tech Earnings Week
Major Indexes Pull Back After Last Week’s Rally
The U.S. stock market retreated on Monday, April 28, 2025, as investors took a cautious stance ahead of a pivotal week filled with high-profile earnings reports and crucial economic data. The Dow Jones Industrial Average fell 57.37 points (-0.14%) to close at 40,056.13, while the S&P 500 declined 27.29 points (-0.49%) to 5,497.67. The tech-heavy Nasdaq Composite dropped more sharply, losing 144.58 points (-0.74%) to finish at 19,287.98.
Today’s pullback follows last week’s strong performance, when the S&P 500 gained 4.6% and the Nasdaq climbed 6.7%, marking their second positive week out of three.
Tech Stocks Lead Declines Ahead of Earnings Tsunami
Technology stocks led today’s declines, with Nvidia (NVDA) dropping 3.45% to $106.99 and Microsoft (MSFT) falling 0.66% to $389.40.
Cadence Design Systems (CDNS) shares also fell ahead of its financial report scheduled for after today’s market close. Meanwhile, Boeing (BA) bucked the trend, advancing after receiving an upgrade from Bernstein, which noted progress in the aircraft manufacturer’s turnaround plan.
Crucial Week Ahead for Markets
This week represents a critical juncture for Wall Street, with approximately 180 S&P 500 companies set to report quarterly results.
Key Economic Data on Tap
Beyond corporate earnings, investors will closely monitor several significant economic reports. Wednesday brings the release of first-quarter U.S. GDP data and the Federal Reserve’s preferred inflation gauge, the Personal Consumer Expenditures (PCE) index, which will show the impact of tariffs on consumer expenses.
Thursday features the ISM Manufacturing PMI, while Friday’s highly anticipated April jobs report will provide crucial insights into the labor market’s resilience amid economic uncertainty.
Trade Tensions Continue to Loom Large
Market sentiment remains heavily influenced by U.S.-China trade relations. Treasury Secretary Scott Bessent stated Monday that it was “up to China” to de-escalate the trade battle, though he acknowledged China’s recent exemption of certain U.S. goods from duties as a positive development.
The impact of tariffs is already becoming apparent, with cargo shipments from China to the U.S. reportedly plummeting by as much as 60% since the U.S. raised tariffs to 145% in early April. Analysts warn this reduction could lead to empty shelves, higher prices, and potential layoffs in industries such as trucking, logistics, and retail by mid-May.
Market Outlook
As President Trump approaches his 100-day mark in office, economic approval ratings have fallen to 39%, with his tariff policies proving particularly unpopular.
Investors should pay particular attention to forward guidance from major companies, as many firms are lowering forecasts despite strong Q1 results, reflecting caution about the impact of ongoing trade tensions.
