Wall Street Awaits Key Data and Earnings Amid Trade Policy Concerns

The S&P 500 and the Dow Jones experienced modest gains in a volatile trading session on Monday. Market participants are keenly awaiting crucial economic data releases and corporate earnings reports from prominent Wall Street firms. Developments in U.S. trade policy also remain a significant focal point for investors.

Investors are carefully analyzing corporate earnings and executive statements to gauge the potential impact of recently implemented tariffs initiated by U.S. President Donald Trump on their respective business outlooks.

This week’s attention will be directed towards the “Magnificent Seven” group of megacap companies, including Apple and Meta Platforms, as a substantial 180 companies within the S&P 500 index are scheduled to disclose their financial results.

Phil Blancato, CEO of Ladenburg Thalmann Asset Management, suggests that major technology firms possess a greater resilience to tariffs and are likely to continue surpassing earnings forecasts. He stated, “Is someone going to stop using a Microsoft operating system due to a tariff? That’s quite improbable.”
So far, this earnings season has been encouraging, with S&P 500 earnings now projected to increase by 9.7% in the first quarter compared to the previous year, as indicated by LSEG IBES data.

As of 9:40 a.m. ET, the Dow Jones Industrial Average increased by 242.03 points, or 0.60%, reaching 40,355.53. The S&P 500 rose by 10.25 points, or 0.19%, to stand at 5,535.46, while the Nasdaq Composite decreased by 18.67 points, or 0.11%, to 17,364.27.

The S&P 500 and the Nasdaq achieved their highest trading levels since April 2.

The Dow received a boost from gains in Boeing following an upgrade in its rating by Bernstein. Conversely, a 2% decline in Nvidia shares exerted downward pressure on the Nasdaq.

Reports indicate that Huawei Technologies in China is preparing to test its artificial intelligence processor, with aspirations to substitute certain products from Nvidia.

Numerous companies have acknowledged the uncertainty stemming from shifts in the U.S. administration’s trade policies, with some revising or withdrawing their annual projections.

Last week, market sentiment was somewhat lifted by indications that the U.S. and China might be willing to ease trade tensions. The three primary indexes concluded Friday with gains for the week, while the Russell 2000, which focuses on small-cap companies, had its most successful week since November.

However, the state of negotiations remained uncertain because of conflicting claims made by Beijing and President Trump.

Blancato commented, “The market is really just trying to assess the next moves by President Trump and the future of trade negotiations.”

The economic calendar also includes crucial data, such as the U.S. monthly payroll figures and the personal consumption expenditures price index.

Since the presidential elections in November, the S&P 500 has decreased by over 4%, and it has fallen by approximately 10% from its record high in February as markets evaluate the potential effects of tariffs.

According to a Reuters survey, a majority of economists believe there is a significant risk of the global economy entering a recession this year.

Shares of Opera, a web browser developer listed in the U.S., surged by 8.6% after the company increased its annual revenue forecast.

Spirit AeroSystems saw a 2.7% increase after Airbus finalized an agreement to acquire several of the company’s facilities.

Advancing stocks outnumbered declining ones by a ratio of 2.24 to 1 on the NYSE and 1.68 to 1 on the Nasdaq.

The S&P 500 registered 3 new 52-week highs without any new lows, while the Nasdaq Composite reported 19 new highs and 12 new lows.