publication
2025-04-22 22:05
After strong drops on Monday, Tuesday's session at Wall Street brought almost equally strong upholstery. The market is still guided mainly by emotions and falls and grows under any pretext (or without). However, there is a shadow of a chance that we will return to “foundations” in the coming days.
The industrial average of Dow Jones ended the Tuesday session at a ceiling of 39 186.98 points, which translated into an increase of 2.66% after a decrease by 2.48% the day before. The S & P500 index finished with a score of 5,287.76 points, increasing by 2.51% after losing 2.36% on Monday. And finally Nasdaq went up by 2.71% after a 2.55% discount at the previous session.
Has anything changed in the last 24 hours? Probably not. The world is still plunged into the accurate wars of President Trump, economic growth in the US hangs in the Italian and no one has a clue what the Host of the White House will say the next day. After all, on Holy Thursday, he threatened to release the head of the federal reserve, which was supposed to frighten investors on Monday.
The early “termination of employment” with Jerome Powell would be seen as an unprecedented assassination attempt on the holy independence of the US central bank. Although basically the threats of President Trump are nothing new. He used exactly the same rhetoric during the first term, in 2018, publicly demanding from Powell a decrease in interest rates. A 66% time market values the chances of at least a 25-plug-in federal reduction at the June FOMC meeting.
“The main concern that drives the market volatility is the medicine for the future and the impact of customs on future activity,” Bill Merz, head of Capital Market Research, told Reuters. – Investors are looking for tips on what politics will be, which is subject to constant change – added Merz.
On Tuesday, the International Monetary Fund significantly reduced this year's forecast of global economic growth, cutting it from 3.3% to 2.8%. The impact of import duties to the US was given as a justification, which have reached the highest level in a hundred years. Currently, most new tariffs (apart from China) are suspended for three months.
Now, however, Wall Street's attention should move to “foundations” in the form of quarterly reports of stock exchange corporations. So far, the results for the first quarter have been published by 82 companies from the S & P500 index and 73% beat (previously reduced) expectations of analysts. Now the stock exchange experts forecast about a 8 % increase in company profits. This is significantly less than in January, when it was counted on an increase of over 12% yaws. This week, reports will publish, among others Alphabet, Tesla, Lockheed Martin, AT&T, Boeing, IBM, Boeing, Procer & Gamble and many others.
On Tuesday, 3M shares went up by over 8.4% after the industrial conglomerate presented the results exceeding the market consensus. The management board, however, stipulated that year -round financial results would be weakened by the impact of customs. Instead, the qualities of the defense mogel Northrop Grumman were overestimated by over 12%, because the company disappointed with the results. The quotations of another company in the arms industry – RTX Corp. went by nearly 10% down.
