Market Watch: Stocks Under Pressure as Earnings Season Heats Up – April 21, 2025

Major Indexes Continue Downward Trend Amid Tariff Concerns

The U.S. stock market started the week on a negative note Monday, April 21, 2025, as investors remain cautious ahead of a busy earnings week. The Dow Jones Industrial Average dropped to 38,790.12, falling 527.16 points or 1.33% for the day, extending its monthly decline to 8.91%. Meanwhile, the S&P 500 showed modest movement, trading at 5,282.70, up just 0.13%, while the tech-heavy Nasdaq Composite gained 0.35% to reach 18,321.30.

Market volatility remains elevated with the CBOE Volatility Index (VIX) standing at 32.87, significantly above its long-term median of 17.6, reflecting continued investor anxiety. This heightened volatility comes as the market has experienced substantial losses since the beginning of 2025, with the S&P 500 down 11.14% year-to-date.

Tariff Uncertainty Continues to Weigh on Markets

The primary driver of market uncertainty remains the ongoing tariff situation. Investors are eagerly watching for any developments regarding a potential tariff deal, with market analysts suggesting that a positive announcement could potentially push the Nasdaq back toward the 19,000 mark and the S&P 500 toward 5,500.

The dollar also weakened today as the Trump administration increased pressure on the Federal Reserve, creating additional market headwinds. This comes after a tumultuous April that has seen extreme market swings, including both thousand-point drops and gains in the major indexes.

Critical Earnings Week Ahead

This week marks a crucial period for first-quarter earnings reports, with several market-moving companies set to announce their results. Tesla (TSLA) and Google parent Alphabet (GOOGL) are among the most closely watched companies reporting this week, as investors seek guidance about potential tariff impacts.

Tuesday’s earnings calendar includes Tesla (TSLA), GE Aerospace (GE), Verizon (VZ), Intuitive Surgical (ISRG), and Lockheed Martin (LMT). Wednesday will see reports from IBM (IBM), AT&T (T), Boeing (BA), and NextEra Energy (NEE), while Thursday brings results from Alphabet (GOOGL), Procter & Gamble (PG), Merck (MRK), and PepsiCo (PEP).

Economic Calendar Highlights

Several important economic indicators and Federal Reserve events are scheduled this week. Today’s Leading Economic Indicators report will be followed by speeches from Philadelphia Fed President Harker on Tuesday. Wednesday is particularly busy with multiple Fed officials speaking, including Chicago Fed President Austan Goolsbee and Fed Governor Christopher Waller, alongside PMI Services and Manufacturing data releases and the Fed Beige Book.

Magnificent Seven Stocks Under Pressure

The “Magnificent Seven” megacap stocks that led markets higher in previous years have struggled in 2025. All seven are sharply lower this year, with Alphabet down approximately 20% and Tesla off 40%. Other major components of the indexes are showing mixed performance, with Apple (AAPL) up 19.55% year-over-year, while Microsoft (MSFT) has declined 7.75%.

Looking Ahead

Market analysts are projecting continued volatility as earnings season progresses. According to Trading Economics forecasts, the S&P 500 is expected to trade at 5,150.10 points by the end of this quarter, with a potential decline to 4,771.86 in 12 months.

As investors navigate this challenging environment, all eyes will be on this week’s earnings reports and any potential developments on the tariff front, which could significantly impact market direction in the days ahead.