US Stocks Slip as Investors React to Corporate Earnings and Tariff Concerns

US Stocks Slip as Investors React to Corporate Earnings and Tariff Concerns

US stocks closed lower on Tuesday as investors closely followed first-quarter corporate earnings and new developments in global trade tensions.

The Dow Jones Industrial Average dropped 0.4% to 40,369, the S&P 500 declined 0.2% to 5,396.6, and the Nasdaq Composite slipped slightly to 16,823.2. Among S&P sectors, consumer discretionary led the losses, while technology stocks outperformed.

Corporate Earnings Highlights:

• Bank of America (BAC) was one of the top gainers on the S&P 500, rising 3.6% after reporting stronger-than-expected Q1 results and stating it does not foresee a US recession this year.

• Citigroup (C) also beat earnings expectations, driven by double-digit revenue growth in its equities trading division.

• Albertsons (ACI) delivered better-than-expected Q4 results but issued a weak full-year earnings outlook, sending shares down 7.6%.

• Boeing (BA) was the worst performer on the Dow, falling 2.4% amid ongoing company-specific challenges.

Economic & Geopolitical Developments:

• Treasury yields were mixed: the 10-year yield dipped to 4.33%, while the 2-year rose slightly to 3.85%.

• Former President Donald Trump commented that “the ball is in China’s court” regarding trade negotiations. Meanwhile, JPMorgan CEO Jamie Dimon urged both nations to reengage quickly.

• According to the Wall Street Journal, Trump is reviewing at least 15 potential trade agreements with other countries.

Commodities & Economic Indicators:

• WTI crude oil held steady at $61.53 per barrel. The International Energy Agency (IEA) and OPEC both revised global oil demand projections downward for 2025 and 2026 due to trade-related economic concerns.

• The New York Fed reported that manufacturing activity improved more than expected this month, though the outlook turned negative for the first time since 2022.

• Gold rose 0.7% to $3,248.50/oz, and silver climbed 0.5% to $32.32/oz.

Market Breadth & Volume:

• On the NYSE, advancing stocks outnumbered decliners 1.29 to 1, with 49 new highs and 67 new lows.

• On the Nasdaq, 2,399 stocks rose, while 2,003 declined, with a 1.2 to 1 advance-decline ratio. The index recorded 27 new 52-week highs and 95 new lows.

• The S&P 500 remains down 12.2% from its February 19 record close, and is 8% lower year-to-date.

• Total trading volume across U.S. exchanges reached 15 billion shares, below the 20-day average of 19 billion.