China Denies Start of U.S. Trade Talks, Sparking Another Sell-off On Wall Street

Barry Adams
24 Apr, 2025
New York City

Wall Street indexes turned lower amid ongoing trade policy confusion and elevated market uncertainty linked to the U.S. president's constantly changing trade policy. 

The sharp swings in market indexes turned April into the most volatile month on record, largely because of the incoherent and chaotic introduction of trade tariffs by the U.S. president. 

The elevated level of uncertainty is forcing corporations to withdraw their forward-looking outlooks, cut capacities, and pass on tariff-linked price hikes to consumers. 

Procter & Gamble's chief executive said price hikes are likely to happen in the second half, Southwest announced its plans to cut its capacity in the second half, and American Airlines withdrew its annual outlook. 

Moreover, Chipotle Mexican Grill reported its first same-store sales decline since the pandemic time in 2020 and said consumers are cautious with their spending.  

Donald Trump turned down his rhetoric on imports from China, only to be countered by the Treasury Secretary that the unilateral trimming of tariffs is not on the table. 

Moreover, China said it has not entered into negotiations with the U.S., dashing hopes of early resolution ahead of the tariff launch date on May 2. 

Investors are increasingly skeptical of announcements from the White House amid constantly changing narratives and shifting deadlines. 

Moreover, oil, bond, and precious markets are forecasting rising risks of a recession, which could begin as early as the third quarter.

At least one million jobs in the U.S. and an additional three million in China and Asia are likely to be lost if the proposed tariffs as high as 145% on Chinese imports are put in place early next month. 

 

U.S. Stock Movers 

ServiceNow Inc. surged 8.7% to $883.45 after the software company reported sharply higher earnings in the first quarter. 

Total revenue increased 18.5% to $3.1 billion, net income advanced to $460 million, and diluted earnings per share rose to $2.20. 

The company guided second-quarter revenue to increase 19% to $3.03 billion and free cash flow margin to 32%. 

American Airlines Group decreased 0.3% to $9.32, and the international carrier pulled its annual outlook, citing economic uncertainty. 

The company in the latest quarter generated revenues of $12.55 billion, and adjusted earnings per share were 59 cents. 

Texas Instruments jumped 9.3% to $166.39 after the advanced chipmaker reported better-than-expected quarterly results. 

Revenue jumped to $4.07 billion from $3.66 billion, net income edged up to $1.18 billion from $1.10 billion, and diluted earnings per share rose to $1.28 from $1.20 a year ago.

Procter & Gamble decreased 1% to $164.07, and the consumer products maker reported lower-than-expected fiscal third-quarter revenue of $19.8 billion. 

Net sales declined 2%, and volume fell 1% in the quarter. 

Net income in the third quarter rose to $3.77 billion from $3.75 billion, and diluted earnings per share advanced to $1.54 from $1.52 a year ago. 

P&G CEO Jon Moeller said price hikes linked to the Trump administration's tariffs are likely to take place in the next fiscal year, which begins in July. 

Chipotle Mexican Grill declined 3% to $47.30, and the company reported weaker-than-expected first-quarter results. 

The fast-casual food chain operator said same-store sales declined 0.4%, the first fall since 2020. 

Revenue jumped to $2.87 billion from $2.70 billion, net income edged up to $386.60 million from $359.29 million, and diluted earnings per share rose to 28 cents from 26 cents a year ago.