Tech titans, tariffs, and the week Wall Street holds its breath

2 minutes read

28 April 2025

Tech titans, tariffs, and the week Wall Street holds its breath

Wall Street’s mood has shifted from panic to cautious optimism in just a few days. Last week, markets were battered by tariff headlines and fears of a global slowdown. But as the new week dawns, investors are watching a high-stakes drama unfold-one where Big Tech earnings, Washington’s trade chess game, and the pulse of the US job market all collide.

A market on edge: Trade winds and tech giants

The week began with a sigh of relief. President Trump’s signal that he might reduce the proposed 145% tariffs on Chinese imports to a more manageable 50-65% sent the Nasdaq 100 soaring 6.4% and the S&P 500 up 4.6%. The move followed tense meetings with major US retailers, who warned that higher tariffs would hit both their bottom lines and American consumers. But as Treasury Secretary Bessent cautioned, “A full deal could take years,” so volatility is here to stay.

The stakes are especially high for tech giants. Apple, Microsoft, Amazon, and Meta Platforms-four of the “Magnificent Seven”-are set to report earnings this week, representing over 40% of the S&P 500’s market value. Their results could swing the market either way. “All of the megacap companies have significant exposure to President Trump’s sweeping tariffs, which will be a major topic on earnings calls,” CNBC reported. Tesla’s CFO, Vaibhav Taneja, didn’t mince words: “The tariffs imposed by the Trump administration would affect our business and profitability”. A Tesla Inc. stock performance chart showing a strong rebound in April 2025, with the stock closing at $284.95, up by 9.80% over the month.

Even with the rebound, tech stocks are still licking their wounds. The Nasdaq is down 16% year-to-date, and April marked its worst quarter in nearly three years. The market is waiting for signs that the worst is over-or that more trouble lies ahead.

Jobs, inflation, and the search for stability

While Wall Street watches earnings, Main Street is watching jobs. The US economy added an impressive 228,000 jobs in March, keeping unemployment at a low 4.2%. But the story beneath the surface is more complicated. Job postings are falling, especially in government and healthcare-two sectors that have powered recent growth. “The big question remains whether a somewhat precarious labor market can withstand the policy shocks emanating from Washington,” noted analysts at Revelio Labs.

Investors are also bracing for key economic data: the Federal Reserve’s preferred inflation gauge and the April jobs report. Both could shape expectations for interest rate cuts. Consumer confidence, meanwhile, has taken a hit. The Conference Board’s Expectations Index hit its lowest level since 2013, and inflation expectations are at their highest since 1992.

UBS strategist Bhanu Baweja summed up the market’s mood: “While we may have moved past the peak of tariff uncertainty, we remain on a high plateau that will significantly influence earnings growth, which does not seem to be reflected in current pricing. Valuations are likely to decline further as the notion of U.S. exceptionalism diminishes”.

As Wall Street enters one of its busiest weeks of the year, the mood is one of cautious hope. Investors are looking for clarity from tech earnings, stability from economic data, and-above all-signs that policy turbulence won’t derail the recovery. The story is far from over, but for now, the market is holding its breath.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.