Wall Street Slows, US Companies Warn Tariffs Clouding Eco. Outlook/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street’s rally slows as businesses cite Trump’s trade war for uncertainty. S&P 500 steadies after gains; Dow slips amid tariff-driven anxiety. Global markets and corporate forecasts remain on edge.
Wall Street Slows as Trump Tariffs Cloud 2025 Economic Forecasts — Quick Looks
- Rally Fizzles: S&P 500 flattens after two-day surge, Dow drops 215 points.
- Tariff Worries Persist: Trump’s trade war causes uncertainty across industries.
- Mixed Corporate Results: Southwest, PepsiCo voice economic concerns despite solid Q1 earnings.
- No China Talks: Beijing denies active negotiations with U.S., deepening doubt.
- IMF Sounds Alarm: Global leaders urged to resolve trade disputes swiftly.
- Treasury Yields Drop: Investors shift to safety as economic fears grow.
Wall Street Rally Stalls as Trump’s Trade War Sparks Widespread Business Anxiety
Deep Looks
NEW YORK (April 24, 2025) — After a two-day surge fueled by optimism over potential tariff relief, Wall Street’s rally hit a wall Thursday, as more companies blamed President Donald Trump’s ongoing trade war for growing financial uncertainty.
The S&P 500 held flat, offering little movement after two volatile sessions. The Dow Jones Industrial Average slipped 215 points (0.5%), while the Nasdaq eked out a 0.3% gain in early trading.
Companies across sectors are now flagging the tariff-driven volatility as a key challenge to forecasting earnings and business growth.
“Uncertainty is bad for business,” said IMF chief Kristalina Georgieva, urging nations to settle trade disputes that risk global growth.
Corporate Caution Grows
Southwest Airlines became the latest to withdraw parts of its annual forecast, citing unclear economic signals. CEO Bob Jordan said the airline would scale back operations in the second half of the year to stay flexible.
“We’re controlling what we can control,” Jordan said. Still, Southwest stock rose 1.1% after a better-than-expected Q1 earnings report.
Other companies echoed similar concerns:
- PepsiCo shares fell 1.7% after trimming its 2025 profit outlook. CEO Ramon Laguarta cited subdued consumer spending and a 25% tariff on imported aluminum affecting beverage cans.
- Hasbro provided a bright spot, surging 12.7% after beating revenue and profit expectations.
Across the board, the narrative is the same: tariff-related uncertainty is hitting planning, costs, and investor confidence.
Markets Rattled by Mixed Messaging
Markets had climbed earlier this week after Trump hinted he might reduce tariffs on Chinese imports. But China dismissed those claims, saying there were no active negotiations and likening any suggestion of progress to “trying to catch the wind.”
“Trump’s headlines have become turbulence for global markets,” said Tan Jing Yi, of Mizuho Bank. “Relief quickly turns into fresh gloom.”
Wall Street Faces a Volatile Landscape
This week alone has seen wild swings — from Monday’s steep selloff to Tuesday and Wednesday’s sharp recovery. Investors are struggling to navigate the “headline-driven market,” with analysts predicting continued instability until more clarity emerges on tariff policy.
“It’s an unhealthy backdrop right now,” said John Belton, portfolio manager at Gabelli Funds. “We’re trying not to overreact, but it’s tough.”
Despite the uncertainty, some economic data remains encouraging:
- Jobless claims ticked up slightly to 222,000 — still within a healthy range.
- The 10-year Treasury yield fell to 4.32% from 4.40% Wednesday, indicating investor flight to safety.
IMF, Households Brace for Tariff Fallout
Earlier this week, the IMF downgraded its global growth forecast, citing Trump’s trade policies as a primary risk. The U.S. growth outlook was slashed as the fund warned of increased recession chances — now pegged at 40%.
Americans are also feeling the strain:
- Consumer confidence is dipping.
- Households are bracing for higher costs on essentials like groceries and electronics.
- A recent AP-NORC poll found most Americans believe Trump’s tariffs will lead to higher prices.
Global Markets Mixed
Thursday brought mixed results across international markets:
- Europe saw modest moves as uncertainty loomed.
- Asian indexes reacted to China’s tariff comments, with most markets holding steady or slipping slightly.
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