Weekly Market Insights | Market Slips as Q1 Reports Arrive

U.S. stocks slipped over the shortened trading week as Q1 corporate reports started to roll in. 

The Standard & Poor’s 500 Index dropped 1.50 percent closing at 5,282.70, while the Nasdaq Composite Index fell 2.62 percent closing at 16,286.45. The Dow Jones Industrial Average lost 2.66 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, added 4.19 percent.^1,2

U.S. Stocks Slide

Stocks started the four-day week with modest gains. Trade volatility subsided as several money center banks reported Q1 numbers at or above expectations.³

Stocks trended lower midweek after Federal Reserve Chair Jerome Powell expressed concern that tariffs would likely “move us further away from our goals”—including keeping inflation in check.⁴

Stocks were mixed on the week's last trading day as traders evaluated White House news that trade deals were progressing with Japan, China, and the European Union. The S&P 500 ended the day higher, but the Dow Industrials were under pressure after a large healthcare company gave a disappointing Q1 report.⁵

The Fed’s Influence

US President Donald Trump called for the termination of Federal Reserve Chair Jerome Powell, adding to investors' concerns this week. The president said in a social media post on Thursday that Powell should "certainly" lower interest rates.

"Powell's termination cannot come fast enough," Trump said.

This came after Powell on Wednesday said tariffs are "highly likely" to generate at least a temporary increase in inflation, though price pressures may be more persistent.

"We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension," Powell said.

March housing starts declined by 11% compared to a month earlier to a 1.32 million annual rate, according to the US Census Bureau, compared with the 1.42 million estimate compiled by a Bloomberg survey.

Tech sector...

Technology had the largest percentage drop, sliding 3.7%, followed by a 3.2% decline in consumer discretionary and a 2.9% loss in communication services. Health care also fell, slipping 1.2%.

Among technology stocks, Nvidia (NVDA) fell 8.6%. The company said it expects a $5.5 billion charge in fiscal Q1 linked to its H20 product line after the US government said it must secure an export license for China, Hong Kong, Macau and D5 countries.

Advanced Micro Devices (AMD) shares also fell, shedding 6.4%, as the company also faces new restrictions on exporting advanced microchips, used for artificial intelligence applications, to China.

Amazon.com (AMZN) was hit hardest in the consumer discretionary sector, falling 6.6%. Chief Executive Andy Jassy said Thursday its network of third-party sellers may pass the cost of Trump's tariffs on to consumers, CNBC reported.

Real Estate sector

The real estate and energy sectors of the S&P 500 were the top gainers this week, up 3.9% and 3.2%, respectively.

In real estate, Prologis (PLD) was up 6.1%. The company reiterated its 2025 guidance after first-quarter results surpassed Wall Street estimates while pointing out that policy uncertainty is making customers "more cautious."

APA (APA) was one of the top performers in the energy sector, gaining 7.2%. The company named Ben Rodgers as chief financial officer, starting May 12. Rodgers, who succeeds Stephen Riney, has worked at APA since 2018, most recently as its senior vice president for finance and treasurer. Riney will continue in his role as president, overseeing asset development and operations, the company said.

This Week: Key Economic Data

Monday: Leading Economic Indicators.

Tuesday: Philadelphia Fed President Harker speaks.

Wednesday: Chicago Fed President Austan Goolsbee, St. Louis Fed President Alberto Musalem, Atlanta Fed President Bostic, and Fed Governor Christopher Waller speak. PMI Services. PMI Manufacturing. New Home Sales. Fed Beige Book.

Thursday: Durable Goods. Weekly Jobless Claims.

Friday: Consumer Sentiment (final).

^{Source: Investors Business Daily - Econoday economic calendar; April 17, 2025
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings

Tuesday: Tesla, Inc. (TSLA), GE Aerospace (GE), Verizon Communications Inc. (VZ), Intuitive Surgical, Inc. (ISRG), RTX Corporation (RTX), Danaher Corporation (DHR), Lockheed Martin Corporation (LMT), Elevance Health, Inc. (ELV)

Wednesday: Phillip Morris International Inc. (PM), International Business Machines Corporation (IBM), AT&T Inc. (T), ServiceNow, Inc. (NOW), Thermo Fisher Scientific Inc. (TMO), Boston Scientific Corporation (BSX), NextEra Energy, Inc. (NEE), Texas Instruments Incorporated (TXN), The Boeing Company (BA), CME Group Inc. (CME)

Thursday: Alphabet Inc. (GOOG/GOOGL), The Proctor & Gamble Company (PG), T-Mobile US, Inc. (TMUS), Merck & Co., Inc. (MRK), PepsiCo, Inc. (PEP), Union Pacific Corporation (UNP), Gilead Sciences, Inc. (GLD), Comcast Corporation (CMCSA), Fiserv, Inc. (FI), Bristol Myers Squibb Company (BMY)

Friday: AbbVie Inc. (ABBV)

^{Source: Zacks, April 17, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

"Alone we can do so little; together we can do so much."

– Helen Keller

The Small Business Health Care Tax Credit

The IRS introduced the small business healthcare tax credit in an effort to extend healthcare benefits. This credit may benefit employers with fewer than 25 full-time equivalent employees, offer a qualified health plan through a Small Business Health Options Marketplace, and pay at least 50% of the employee-only health care coverage cost. There may also be some average wage requirements.

The maximum credit covers:

• 50% of premiums paid for small business employers
• 35% of premiums paid for small tax-exempt employers

The credit may also be available for two consecutive taxable years.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional. 

Tip adapted from IRS⁸

Games to Exercise Your Brain

Brain training is a great way to keep your mind sharp, and these fun games are designed for people of all ages. Improve your mental fitness with games like:

• Sudoku - This strategy game requires you to find the correct order of numbers 1-9 in a 3x3 grid. There can only be one of each number in each row and column.
• Crossword Puzzles - Find the correct word for each clue. The words intersect and share letters, so you have to make sure you have the right word otherwise the puzzle won’t fit!
• Peak - A brain training app for your phone or tablet. It offers several different games designed to improve cognitive function and problem-solving. 

Tip adapted from Very Well Mind⁹

What 10-letter word (in English) can you type using only the topmost row of letters on a computer keyboard (the Q-P row)? Hint: the first two letters of the word are next to each other in the Q-P row.

Last week’s riddle: I have a horn and am almost as large as a car, but I will never honk my horn or outrun a car or truck. What might I be?
Answer: A rhinoceros.

Hassan II Mosque
Casablanca, Morocco 

Footnotes and Sources

^{1. The Wall Street Journal, April 17, 2025}

^{2. Investing.com, April 17, 2025}

^{3. CNBC.com, April 15, 2025}

^{4. CNBC.com, April 16, 2025}

^{5. WSJ.com, April 17, 2025}

^{6. CNBC.com, April 16, 2025}

^{7. CNBC.com, April 4, 2025} 

^{8. IRS.gov, September 30, 2024}

^{9. Very Well Mind, December 12, 2024}

^{10. Provided by MT Newswires. Ycharts.com. Aprl. 14 - Apr. 18, 2025}