Market Turmoil Continues: Why Is the Stock Market Down Today? April 17, 2025 Update
Major Indexes Extend Losses as Trade War and Tech Restrictions Weigh on Markets
The stock market continues its downward trajectory today, Thursday, April 17, 2025, as investors grapple with escalating trade tensions and new restrictions on technology exports to China. The major indexes are extending yesterday’s significant losses, with the S&P 500 currently hovering around 5,275 points, the Dow Jones Industrial Average at approximately 39,669, and the Nasdaq composite at about 16,307.
Yesterday’s trading session saw substantial declines across all major indexes, with the S&P 500 falling 2.2%, the Dow dropping 699 points (1.7%), and the tech-heavy Nasdaq plummeting 3.1%. This market downturn follows several weeks of extreme volatility triggered by President Trump’s announcement of “reciprocal” tariffs on April 2, which has sent the Dow and Nasdaq down about 4.4% each since then.
Tech Sector Hit Hard by Export Restrictions
The technology sector is leading today’s decline, with semiconductor stocks facing particularly steep losses. Nvidia (NVDA) dropped 6.9% yesterday after announcing that U.S. government restrictions on exports of its H20 chips to China could result in a $5.5 billion hit to its first-quarter results. Advanced Micro Devices (AMD) also fell 7.7% after disclosing potential charges of up to $800 million related to similar export limitations.
Dutch chip equipment maker ASML (ASML) saw its stock sink 5.2% despite reporting continued growth driven by artificial intelligence technology demand. The company’s CEO, Christophe Fouquet, acknowledged that “the recent tariff announcements have increased uncertainty in the macro environment.”
Fed Chair Powell’s Comments Add to Market Concerns
Federal Reserve Chair Jerome Powell’s recent comments have further unsettled investors. Powell stated that Trump’s tariffs appear to be larger than initially expected, potentially slowing economic growth and raising inflation more than previously anticipated. However, he emphasized that the Fed needs more time before deciding whether to adjust interest rates, noting that it’s “impossible to predict this year with any degree of confidence.”
The bond market has shown some stabilization, with the yield on the 10-year Treasury falling to 4.28% from 4.35% on Tuesday and 4.48% at the end of last week. This decline in yields typically indicates growing concerns about economic prospects.
Key Earnings Reports Today
Several notable companies are reporting earnings today, which could influence market sentiment:
– State Street Corp. (STT) is expected to report Q1 earnings of $2.01 per share before market open
– Regions Financial Corp. (RF) is anticipated to post Q1 earnings of $0.51 per share before market open
– Netflix (NFLX) will report Q1 results after market close, with analysts expecting earnings of $5.73 per share
Global Market Response and Economic Outlook
Global markets are also feeling the impact of U.S. trade policies and tech restrictions. Asian markets closed lower, with Hong Kong down 1.9%, Tokyo falling 1%, and Seoul dropping 1.2%. European markets showed mixed performance, with Paris down slightly while London’s FTSE 100 rose 0.3% following positive inflation data.
The World Trade Organization has 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. WTO Director-General Ngozi Okonjo-Iweala cautioned that “enduring uncertainty threatens to act as a brake on global growth.”
What to Watch in the Coming Days
Investors should keep an eye on retail sales data, which economists expect to show a 1.2% increase for March, potentially reflecting consumers rushing to make purchases before tariff-related price increases take effect. Recent surveys indicate growing pessimism among U.S. households regarding the economic outlook, raising concerns about future consumer spending patterns.
With market volatility expected to continue, many fund managers are bracing for a possible recession, with a Bank of America survey showing recession expectations at the fourth-highest level in 20 years.
