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Markets, Volatility, and a Slowing Economy
Trade Tensions, Slowing Growth, and Corporate Shakeups: What’s Driving the Markets This Week
Nischal Konduru
April 27, 2025
Hey Readers,
Lets be honest - It seems hard to get too excited about stocks despite their recent rally, as tariff uncertainty overwhelms upcoming data on the U.S. economy.
This week, We are covering:-
How Tariffs are shaking investors confidence
Tech and Consumer giants report earnings results
April Jobs Report preview
MARKETS
While investors will closely watch reports in the coming week on jobs, inflation and gross domestic product, the data will be backward-looking amid heightened concern that President Donald Trump’s sweeping tariffs announced on April 2 may inflict future damage on the economy.
Tariff Turbulence: President Trump’s “Liberation Day” Tariffs announced on April 2 have unsettled markets, leading to volatility. The S&P 500 is down 2.6% since early April as investors are skeptical on the ongoing trade war, particularly between China and EU.
Economics Slowdown: The U.S economy was shrinking even before the tariffs, with Q1 GDP growth projected at a 0.4%. Consumer Spending showed signs of deceleration, and the trade deficit has widened.
Jobs Report Watch: April’s Job report is expected to show a huge decline in hiring, with a projection of 125,000 jobs this month compared to 228,000 in March. The Unemployment rate is expected to move at a steady pace, with its projected rate of 4.2% this year.
BUSINESS
Earnings Season: This week, 180 S&P Companies are expected to report their quarterly results, including Apple, Amazon, Microsoft, Meta, and McDonald’s. However, Apple is the top company to look out for, as it is under pressure from Chinese tariffs.
Financial Sector Spotlight: Visa, Mastercard, and PayPal are among the financial firms reporting earnings this week, providing insights into consumer spending trends among economic uncertainty.
ECONOMY
Global Growth Risks: The IMF warns of declining global growth and increasing trade tensions and policy uncertainties.
Central Bank Actions: The European Central Bank has cut interest rates due to concerns over U.S tariffs’ impact on growth.