Stocks Slide as Q1 Earnings Arrive:
U.S. stocks dipped during the shortened trading week as investors began assessing the first wave of Q1 corporate earnings reports, awaiting key results from major industries to gauge the health of the economy and future market trends.
The S&P 500 Index dropped 1.50%, while the Nasdaq Composite Index fell 2.62%. The Dow Jones Industrial Average lost 2.66%. The MSCI EAFE Index, which tracks developed overseas stock markets, added 4.19%.1,2
Source: Bloomberg Finance, L.P. (Performance data normalized 4/11/25 = 0)
U.S. Stocks Slide
Stocks started the four-day week with modest gains. Trade volatility subsided as several money center banks reported Q1 numbers at or above expectations.3
Stocks trended lower midweek after Federal Reserve Chair Jerome Powell expressed concern that tariffs would likely “move us further away from our goals”—including keeping inflation in check.4
Stocks were mixed on the week’s last trading day as traders evaluated White House news that trade deals were progressing with Japan, China, and the European Union. The S&P 500 ended the day higher, but the Dow Industrials were under pressure after a large healthcare company gave a disappointing Q1 report.5
Sources: U.S. Department of the Treasury, Board of Governors of the Federal Reserve System, Charles Schwab
The Fed’s Influence
Stocks were under pressure following comments from Fed Chair Powell, who expressed concern about the ability of the Fed to balance its inflation and employment goals given the current trade situation. He said, “Tariffs are highly likely to generate at least a temporary rise in inflation,” and “the inflationary effects could be more persistent.”6
These are Powell’s latest remarks about tariffs. The Fed Chair made similar comments earlier this month at an event in Alexandria, Virginia.7
This Week: Key Economic Data
Source: Bloomberg Finance L.P.
This Week: Companies Reporting Earnings
Source: EarningsWhispers
Author
Gary Aiken
Chief Investment Officer
Concord Asset Management
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Footnotes and Sources
1The Wall Street Journal, April 17, 2025
2Investing.com, April 17, 2025
3CNBC.com, April 15, 2025
4CNBC.com, April 16, 2025
5WSJ.com, April 17, 2025
6CNBC.com, April 16, 2025
7CNBC.com, April 4, 2025
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