- U.S. stocks declined amid tech earnings anticipation and tariff fears.
- Nvidia slumped after Huawei’s chip launch; the dollar and Bitcoin weakened.
- Tariff tensions kept investor sentiment fragile ahead of key earnings.
Investors were paring U.S. stocks on Monday, keeping an eye on major tech earnings reports as they struggled to overcome persistent fears surrounding tariffs.
Markets Struggle Amid Earnings Anxiety and Tariffs
It was an earnings week of a make-or-break nature, and markets had to navigate several headwinds initially. The Dow Jones Industrial Average was down 205.96 points, or 0.51%, at 39,907.54 on April 28. The DOW also slipped as the DOW lost 249.08 (0.66%) on Wednesday, dropping to 38,622.70. The tech-heavy Nasdaq, meanwhile, closed down 227.24 points, 1.31%, at 17,155.70.
Shares of Nvidia fared among the worst performers in the session, declining 4.18% to $106.45. The loss destroyed over $100 million of the company’s market cap. Chinese technology giant Huawei rolled out its new Ascend 910D chip, which directly competes with Nvidia’s H100 processor, and this came as the decline. After Biden’s administration banned the export of AI chips to China, Huawei is trying to stoke the growing demand in China.
Other assets also felt broader uncertainty weighing on them. The dollar index fell 0.44% to 99.03 from its close as the dollar weakened. After its recent rally, Bitcoin (BTC) also retreated 0.37% to $93,741. In contrast, gold rose 0.10% to $3,336 per ounce.
Market Sentiment Wavers Ahead of Key Tech Earnings
Attention then shifted to upcoming earnings reports of several tech giants, including Apple, Amazon, Meta, and Microsoft, helping to keep investor sentiment fragile. The market is closely watching strong tech earnings to determine whether such sales can tame growing macroeconomic pressures, including fears over tariffs.
Despite the optimism regarding possible corporate strength, there is a sense of scepticism that the current earnings expectations are too optimistic, considering the broader economic headwinds. Global growth increasingly views tariffs, particularly on Chinese goods, as a drag on growth.
And clues were thrown into the uncertainty about the future of the steep tariffs on China. Treasury Secretary Scott Bessent said on April 28 that it is ‘up to China’ to make steps towards de-escalation, as the U.S. administration did not appear yet to be ready to give in on the trade confrontation.
