Markets Calm After Trump Tariff Shock, Focus Shifts to Earnings and Fed Policy
Volatility triggered by President Donald Trump’s April 2 tariff announcements has cooled, but investors now turn their attention to major corporate earnings reports to gauge the real impact of US trade policy.
Fresh US economic data may also influence expectations of early Federal Reserve interest rate cuts.
Themistoklis Fiotakis, global head of FX strategy at Barclays Plc, told Bloomberg TV that a clearer framework for trade policies could bring much-needed stability. “If this starts shaping up in a place where markets can understand it, can quantify it, then I think that things are going to normalize,” Fiotakis said.
European stocks reflected a more optimistic tone, with the Stoxx 600 climbing 0.5%, buoyed by merger and acquisition activity. Notably, Mediobanca offered €6.3 billion ($7.1 billion) to acquire the wealth management arm of Italian insurer Assicurazioni Generali SpA.
Meanwhile, S&P 500 futures dipped 0.3% following a four-day winning streak, the longest since January.
Key Earnings Ahead: Magnificent Seven in Focus
This week will see earnings reports from four of the “Magnificent Seven” — Microsoft Corp., Apple Inc., Meta Platforms Inc., and Amazon.com Inc. Analysts forecast 15% profit growth for this elite group in 2025, a number largely unchanged despite escalating trade tensions.
Trade Talks and Tariff Concerns Linger
Investors remain vigilant for any breakthroughs in US trade negotiations. Trump recently indicated that further delays to higher tariffs are unlikely. Asian economies, particularly vulnerable to US “reciprocal” tariffs, are pushing hard to secure favorable deals before further measures take effect.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
