Wall Street’s Wild Week: Big Tech, Tariffs, and Earnings Frenzy

It was another rocky week for Wall Street, with both stocks and sentiment taking a hit. The S&P 500 slipped 1.5%, while the tech-heavy Nasdaq sunk even further, dropping around 2.6%. Year-to-date, that leaves the S&P 500 off by 10.2% and the Nasdaq down a steeper 15.7%. 2024 has yet to deliver the bull market many investors were hoping for.

What’s weighing on the market? Once again, the culprit is tariff uncertainty. Fresh export restrictions targeting U.S. semiconductor sales to China hit hard, especially for chip giants like NVIDIA. Layer on top some cautious signals from the Federal Reserve—Fed Chair Jerome Powell reiterated last week that the central bank is in no rush to cut rates, citing tariffs’ double-edged threat to both inflation and economic growth—and you have a recipe for volatility across equities.

But not all the news was negative. As stocks fell, investors flocked to government bonds, calming nerves and bringing some welcome balance to portfolios. The 10-year Treasury yield slid roughly 0.16% over the week, pushing bond prices higher. The broad U.S. Aggregate Bond Index ended up nearly 1%, underscoring the classic diversification benefits of holding bonds in uncertain times.

Markets face a tug-of-war between ongoing tariff turbulence and the hope that policy support will ease the fallout. With volatility front and center and global trade winds shifting, savvy investors would be wise to stay diversified and keep an eye on both Washington and Beijing as this story unfolds.

Economic & Earnings Calendar

After a quiet holiday, Wall Street is about to jump back into the fray with one of the busiest earnings weeks this season. More than 100 S&P 500 companies—nearly a quarter of the entire index—are set to report results. Investors will be watching closely as some of the biggest names in tech and industry take center stage, setting the tone for markets in the weeks ahead.

Tesla steals the spotlight early in the week. The electric vehicle maker has seen its shares tumble over 40% this year, plagued by slumping sales—Q1 deliveries were down 13% from a year ago. When Tesla releases results after the bell on Tuesday, expect investors to grill CEO Elon Musk on a wide range of issues.

Later in the week, it’s Alphabet’s turn to shine. The Google parent reports Thursday afternoon, with Wall Street anticipating strong growth. Yet, regulatory woes loom large—a federal judge just ruled Google violated antitrust laws.

According to options markets Tesla is expected to move over 10% on earnings. Alphabet is expected to move close to 8%.

The nation’s big telecom companies—Verizon (Tuesday), AT&T (Wednesday), and T-Mobile (Thursday)—will offer critical insights on consumer sentiment and spending. Watch for hints about how tariffs could hit Apple, especially as the White House recently announced a temporary exemption for iPhones and other key devices. Will customers rush to upgrade in anticipation of higher prices down the road? The telecoms may have the answer.

Some of America’s biggest names across aerospace, defense, consumer products, and biotech will also report:

• Tuesday: GE Aerospace, Lockheed Martin, Northrop Grumman

• Wednesday: IBM, Chipotle, Boeing

• Thursday: Procter & Gamble, Merck, Caterpillar, Gilead Sciences, Intel

Fresh housing data—the latest figures for both new and existing home sales—land Wednesday and Thursday, respectively. The Federal Reserve will also release its latest Beige Book survey Thursday, offering a readout on business conditions across the country. With the Fed remaining firmly data-dependent, these reports could influence the outlook for interest rates and monetary policy.

Chart of the Week:

Disclaimer: The author of this blog is a financial advisor but may not be the right advisor for you. In fact, the author may not even be the right advisor for themselves. Please consult a qualified professional before making any financial decisions based on the content of this blog. And remember, just because the author has a fancy title and a briefcase full of spreadsheets, doesn't mean they know what they're doing.