Markets Lose Steam, CEOs Cite Trade Uncertainty Over Tariff War

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Markets Lose Steam, CEOs Cite Trade Uncertainty Over Tariff War/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street’s rally hit a speed bump Friday as uncertainty surrounding President Trump’s trade war cast a shadow over corporate forecasts. Despite strong early earnings from Alphabet, major indexes traded mixed as CEOs from Intel, Eastman Chemical, and others flagged concerns over global tariffs.

The handheld device of trader Edward Curran is reflected in his glasses as he works on the floor of the New York Stock Exchange, Thursday, April 17, 2025. (AP Photo/Richard Drew)

Trump Trade War Uncertainty Slows Wall Street Rally: Quick Looks

Mixed Market Movement: The S&P 500 rose 0.2%, the Nasdaq gained 0.3%, while the Dow dipped slightly by 10 points.
Corporate Caution: CEOs from Intel, Eastman Chemical, and Skechers cited global trade tensions and tariff uncertainty as reasons for pulling or cutting financial forecasts.
Tariff Turbulence: Skepticism grows around Trump’s on-again-off-again tariff strategy, which many businesses say is complicating investment planning.
Alphabet’s Boost: Google’s parent company helped buoy the S&P 500 with a 3.1% jump after a strong Q1 earnings report.
Global Markets: European indexes rose modestly; Tokyo’s Nikkei jumped 1.9%, while Shanghai edged down.
Treasury Yields Ease: The 10-year Treasury yield fell to 4.28%, a sign of investor caution.
Dollar Strengthens: The U.S. dollar rebounded after a recent dip.

Markets Lose Steam, CEOs Cite Trade Uncertainty Over Tariff War

Deep Look

Wall Street’s three-day rally showed signs of exhaustion on Friday as growing unease around President Donald Trump’s trade policies put pressure on corporate outlooks and investor sentiment. Despite early gains led by Alphabet, whose stock rose 3.1% following a blockbuster earnings report, the broader market struggled to find footing.

The S&P 500 was up 0.2% while most of its component stocks were in the red. The Dow Jones Industrial Average edged down by 10 points, and the Nasdaq Composite climbed 0.3%.

Tech heavyweight Intel weighed heavily on investor sentiment. Although its first-quarter earnings beat expectations, the company delivered a disappointing forecast, citing “elevated uncertainty across the industry.” Intel stock dropped 7.6% in early trading.

Similarly, Eastman Chemical cut its spring profit forecast, with CEO Mark Costa warning that tariff uncertainty has worsened in recent months.

“The macroeconomic uncertainty that defined the last several years has only increased,” Costa said, noting that demand remains unpredictable amid ongoing trade friction.

These are just the latest CEOs to raise red flags over Trump’s aggressive tariff approach, which has upended global supply chains and left many firms unsure how to plan for the year ahead. Earlier this week, Skechers pulled its full-year forecast, blaming instability in trade policy—even as it posted a record $2.41 billion in quarterly revenue. Shares of the footwear company slipped 3.4%.

The week began on a hopeful note, with markets rallying after Trump hinted at possibly easing tariffs and dialing back pressure on the Federal Reserve. But optimism is fading fast, with many companies urging caution due to rapid, unpredictable shifts in economic policy.

“The landscape is changing too fast,” said one Wall Street strategist. “Trump’s tariffs one day are off the next, and it’s freezing a lot of long-term decision-making.”

Helping to stabilize markets was Alphabet. The parent company of Google reported a 50% year-over-year surge in profit, reaffirming its position as a major driver of tech sector strength. Its market capitalization means gains in Alphabet carry significant weight in benchmark indexes like the S&P 500.

Global markets were mixed. Tokyo’s Nikkei 225 surged 1.9%, fueled by upbeat tech earnings and renewed domestic spending, while Shanghai’s index dipped 0.1%. European indexes moved modestly higher.

In the bond market, yields on U.S. Treasuries edged lower, with the 10-year yield slipping to 4.28% from 4.32%. Investors have been jittery after a surprise run-up in yields earlier this month sparked fears that faith in the U.S. debt market could be weakening.

The U.S. dollar also rebounded against key rivals, including the euro, after recent volatility.

As Wall Street navigates through earnings season, all eyes remain on how companies manage the fallout of Trump’s escalating trade tactics—and whether the administration’s tone toward tariffs will shift once again.