wonderreports

Market Performance

U.S. stock markets on Wednesday, April 16, 2025, faced heavy selling owing to raging trade tensions and disappointing earnings from corporations. The S & P 500 fell 2.2 percent to 5,275.70. The Dow Jones Industrial Average slid 1.7 percent to close at 39,669.39. The Nasdaq Composite was down 3.1 percent at 16,307.16.

Key Factors Affecting the Market

Trade Tensions:Tariffs imposed recently by President Donald Trump have reignited the U.S.-China trade war. In retaliation, China suspended deliveries of Boeing aircraft and mail services to the United States, disrupting operations of U.S. companies including Tesla.

Corporate Earnings: Nvidia reported a $5.5 billion loss on unsalable AI chips due to new export restrictions to China, contributing to a nearly 7 percent stock decline. AMD added that it also expected $800 million in impact, and ASML raised concerns over macroeconomic uncertainty.

READ MORE: U.S. stock markets on Wednesday, April 16, 2025, faced heavy selling owing to raging trade tensions and disappointing earnings from corporations.

Federal Reserve Outlook:Fed Chair Jerome Powell warned that the new tariffs might curb economic growth and raise inflation, thus risking stagflation. Powell ruled out any immediate corrective action and appeared inclined towards caution.

Investor Sentiment

Investor confidence has taken a hit, with a survey of Bank of America showing the most pessimistic outlook on the dollar in two decades. The trend now is towards safe haven investments, gold, which has reached an all-time high of $3,300 an ounce.

Upcoming Market Closure

Please note, the U.S. stock markets will remain closed on Friday, April 18, 2025, on account of Good Friday. Trading will resume on Monday, April 21, 2025.