Stock Markets Brace for Earnings Reports, Tariff Turmoil Keeps Recession Worry Alive

Barry Adams
15 Apr, 2025
New York City

U.S. stocks struggled to advance as investors shifted their attention to corporate earnings amid ongoing tariff turmoil. 

The S&P 500 index decreased 0.1%, and the Nasdaq Composite declined 0.3% as investors reviewed the latest quarterly results from banks and pharma companies. 

Bank of America, Citigroup, Goldman Sachs, Johnson & Johnson, and Netflix were in focus after they released earnings. 

Market sentiment has seesawed amid constantly changing U.S. trade policy as the Trump administration attempts to pass on its elevated tariff rates as a part of negotiating tactics while claiming to create jobs in the sector in the long run.

Over the last three weeks, Donald Trump announced a high import tax covering all imports worth about $3.5 trillion, an effort to revive the domestic manufacturing industry and stem job losses. 

The manufacturing industry's share of jobs has steadily declined to 8% in 2025 from as high as 35% in the early sixties. 

About two-thirds of jobs lost in the manufacturing sector over the last four decades have resulted from companies improving their operations and automation. 

About 12.7 million people are employed in the manufacturing sector, according to U.S. Bureau of Labor Statistics data. 

Moreover, the Trump administration is planning to raise $700 billion in new annual revenue through the imposition of tariffs or import taxes, but none of that revenue will be used to expand the manufacturing sector or pay down the federal government debt of $36 trillion. 

 

Commodities, Currencies, Indexes, Yields

The S&P 500 index increased 0.6% to 5,441.14, the Nasdaq Composite edged up 0.7% to 16,948.92, and the Russell 2000 index was up 0.1% to 1,883.12.

The yield on 2-year Treasury notes edged higher to 3.84%, 10-year Treasury notes increased to 4.38%, and 30-year Treasury bonds advanced to 4.83%.

WTI crude oil decreased $0.18 to $61.35 a barrel, and natural gas prices edged lower by $0.03 to $3.30 a thermal unit.

Gold increased by $11.47 to 3,223.65 an ounce, and silver edged down by $0.01 to $32.29.

The dollar index, which weighs the US currency against a basket of foreign currencies, increased by 0.19 to 99.83, and it traded at the lowest level since April 2022.

 

U.S. Movers 

Bank of America edged up 2% to $37.78 after the financial services company reported better-than-expected quarterly earnings. 

The company's revenue rose to $27.51 billion, and earnings per share advanced to 90 cents, driven by strong net interest income and trading revenue.

ON Semiconductor Corp. advanced 1% to $35.70 after the company withdrew its all-cash offer to acquire Allegro MicroSystems for $35.10 per share. 

Allegro MicroSystems tumbled 8.5% to $20.05.

Johnson & Johnson declined 1% to $152.80, and the pharmaceutical company's quarterly results surpassed market expectations. 

Netflix Inc. advanced 2% to $951.39, and the streaming services provider reported better-than-expected earnings. 

American Airlines Group decreased 0.3% to $9.55, and the company plans to offer in-flight Wi-Fi for free in 2026 to members of its AAdvantage loyalty program. 

Citigroup Inc. gained 0.6% to $63.58 after the financial service provider reported first quarter 2025 results.

Revenue increased 3% to $21.60 billion from $21.02 billion, net income jumped 21% to $4.06 billion from $3.37 billion, and diluted earnings per share rose to $1.96 from $1.58 a year ago.

The company’s operating expenses were down 5% to $13.4 billion compared to the prior year.

The financial services company returned a total of approximately $2.8 billion to common shareholders during the quarter in the form of dividends and share repurchases.