Stocks Mixed as Tariff Concerns and Earnings Shape Friday Trade
Stocks traded with a cautious tone Friday as upbeat earnings from major tech names clashed with renewed tariff worries following comments from former President Donald Trump. The S&P 500 and Nasdaq remain on track for solid weekly gains, while the Dow lags slightly behind.
How Are Earnings Driving Big Moves in Tech?
Alphabet rallied 3% after topping expectations on both revenue and earnings for the first quarter, lifting broader tech sentiment. Meanwhile, Intel slid 7% after providing weaker-than-expected guidance and announcing cuts to both operational and capital spending. Other tech names showed resilience, with Tesla surging over 8% and Microsoft edging higher ahead of key earnings reports next week.
Is Tariff Rhetoric Putting Pressure on Markets?
Fresh tariff headlines dented some of the week’s optimism. Trump stated in a Time magazine interview that he would view tariffs of 20% to 50% on foreign goods as a “total victory” within a year, raising concerns about future trade frictions. While he hinted at several upcoming trade deals, the market showed signs of hesitation, particularly after China reported there were no current talks on tariffs.
Which Sectors Are Feeling the Heat?
Consumer staples stocks are pacing for their worst week in months. Kimberly-Clark, Procter & Gamble, PepsiCo, and Church & Dwight are all set for significant weekly declines as companies warn that trade tensions could squeeze consumer confidence and lift prices. Defensive sectors lagged broadly, while growth areas like technology and consumer discretionary outperformed.
What Are Traders Watching in Economic Data?
The University of Michigan’s final consumer sentiment reading for April came in better than expected at 52.2, slightly above forecasts. However, inflation expectations remain elevated, with the one-year outlook at 6.5%, the highest since 1981. Despite the small improvement, sentiment is coming off its sharpest three-month drop since the 1990 recession, keeping recession concerns on the table.
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See all NASDAQ 100 forecastsMarket Forecast: What’s Next for Stocks?
Despite some noise around tariffs and trade policy, the market’s overall tone remains constructive heading into next week. Strong earnings momentum from large-cap tech, coupled with expectations that tariff risks may have peaked, are providing support. However, traders should stay focused on upcoming results from Microsoft, Amazon, and other hyperscalers, as well as fresh economic data that could shift Fed rate cut expectations.
More Information in our Economic Calendar.
