Investor Confidence Shaken After Trump Tariffs Roil Global Markets, AMD and Alphabet Results Weigh

Barry Adams
05 Feb, 2025
New York City

Wall Street indexes meandered in early trading on Wednesday after mixed earnings from AMD and Alphabet overwhelmed market sentiment. 

The S&P 500 index edged up 0.1%, and the Nasdaq Composite inched higher 0.2% as quarterly earnings announcements gathered pace. 

Investors shifted focus from hollow tariff threats to corporate results and reacted to the latest updates from about 80 companies, including Alphabet, Uber Technologies, AMD, Electronic Arts, Chipotle Mexican Grill, and Walt Disney Co. 

The yield on 10-year U.S. Treasury notes hovered around 4.5% as investors revise inflation expectations higher amid the persistent threat of Trump tariffs. 

Most manufactured goods from China now face a total of 25% tariffs after the latest increase of 10%, and European goods are likely to face at least 10% tariffs as early as the first week in April.

Tariffs are indirect taxes paid by consumers and not by suppliers or manufacturers located outside the U.S., and a key contributor to inflationary forces. 

Moreover, the tariffs on imported goods also disproportionately impact lower-income families, who rely on cheaper goods made in Asia.

The U.S. Postal Service reversed its previously announced plans to process incoming parcels from China and Hong Kong, altering its stance only hours after announcing the measure. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.2% to 6,027.73, the Nasdaq Composite edged down 0.5% to 19,547.72, and the Russell 2000 index increased 1.41% to 2,290.21.

The yield on 2-year Treasury notes edged lower to 4.20%, 10-year Treasury notes decreased to 4.46%, and 30-year Treasury bonds declined to 4.70%.

WTI crude oil decreased $1.09 to $71.60 a barrel, and natural gas prices edged lower by $0.04 to $3.21 a thermal unit.

Gold rose by $23.38 to $2,864.27 an ounce, and silver edged up by $0.17 to $32.24.

The dollar index, which weighs the US currency against a basket of foreign currencies, declined 0.47 to 107.52 and traded at a two-year high.

 

U.S. Stock Movers 

Uber Technologies declined 5.3% to $66.05 after the ride-sharing app and delivery platform operator's revenues were ahead of market expectations, but the company offered a conservative estimate of gross bookings in the first quarter. 

Gross bookings in the fourth quarter were $44.2 billion, and the company guided bookings in the first quarter to range between $42 billion and $43.5 billion. 

AMD dropped 9.8% to $107.80 after the advanced chipmaker reported weaker-than-expected revenue in its data center unit in the fourth quarter. 

Alphabet plunged 7% to $191.70 after the parent company of Google and YouTube reported weaker-than-expected revenue in its cloud computing division as it escalates investment in artificial intelligence.

Apple decreased 2% to $228.16 on speculation that Chinese regulators are likely to expand its investigation list targeting American companies, which could include the popular smartphone maker. 

Walt Disney Co. increased 1.3% to $114.81 after the media company and theme park operator's fiscal first quarter earnings surpassed market expectations. 

Disney+ subscribers slightly declined, and the company estimated another "modest decline" in the current quarter. 

Chipotle Mexican Grill dropped 5.5% to $56.17 after the fast food chain's same-store sales in fiscal 2025 are likely to slow to a low- to mid-single-digit increase.