Stocks saw even more volatility heading into the end of April
Wall Street battled volatility all week, as mixed tariff messaging and dovish Fed commentary weighed on investor sentiment. An early tech rally fizzled after Commerce Secretary Howard Lutnick suggested tariff exemptions on key tech products may be short-lived. Fed Chair Jerome Powell added to the pressure, warning that trade tensions could stoke inflation and derail the central bank’s goals -- comments that pushed the Dow back below 40,000.
Tech stocks led the pullback, with Nvidia (NVDA) sliding on $5.5 billion in tariff-related charges and reports the White House may target its Chinese AI client, DeepSeek. Despite a retreat in the Cboe Volatility Index (VIX), all three major indexes are pacing for weekly losses, as investors brace for more earnings and potential policy shifts.
Quarterly Reports That Shook Up Wall Street
While all eyes were on UnitedHealth’s (UNH) report to close out the week, several other corporate heavyweights delivered earnings that moved markets. Goldman Sachs (GS) was among the major banks helping to kick off earnings season on a high note, rallying after first-quarter results exceeded expectations. Bank of America (BAC) and Citigroup (C) followed suit with their own upside surprises, sending both stocks higher.
In the travel sector, United Airlines (UAL) impressed with stable bookings, leading to a first-quarter beat. Meanwhile, Taiwan Semiconductor (TSM) topped estimates but saw its post-earnings rally capped by renewed tariff concerns.
Tariff Uncertainty Continues to Weigh
Ongoing tariff uncertainty continues to cast a shadow over a wide range of sectors. Chipmaker ASML (ASML) followed in Taiwan Semiconductor’s (TSM) footsteps, cutting its sales forecast due to what it called "increased uncertainty in the macro environment."
Elsewhere, gold stocks extended their rally as investors sought shelter in the safe-haven asset. Boeing (BA), however, fell under pressure after China suspended jet deliveries and escalating trade concerns. On the flip side, Dell Technologies (DELL) and Best Buy (BBY) surged after reports that smartphones, computers, and key semiconductor components would be excluded from the latest round of proposed tariffs -- a welcome development for tech and consumer electronics names.
More Earnings, Fed Updates Ahead
As the final week of April approaches, investors are bracing for another barrage of earnings reports and key commentary from the Federal Reserve. On deck in the earnings confessional are heavyweights like 3M (MMM), Alphabet (GOOGL), American Airlines (AAL), Boeing (BA), Lockheed Martin (LMT), and Tesla (TSLA) -*- all poised to move markets with their quarterly results.
Be sure to check out which stocks are the best and worst to own the week after Easter, pulled from historic data by Schaeffer’s Senior Quantitative Analyst Rocky White, as well as Senior V.P. of Research Todd Salamone's latest insight on critical support and resistance zones for SPX bulls to evaluate.