Week’s Market Performance

Market News

Trump Unveils Aggressive Tariff Plan, Markets Tumble

On April 3, 2025, President Donald Trump announced a sweeping tariff policy, imposing a 46% levy on goods from Vietnam and signaling further trade barriers, effective April 9. Federal Reserve Chair Jerome Powell warned of significant economic fallout, including higher inflation and slower growth, as reported by Bloomberg. Stocks plummeted, with Wall Street experiencing a sharp selloff, bonds surged, and oil hit a four-year low amid fears of a trade war escalation.

Reuters noted that the U.S. dollar weakened as global markets reacted to the uncertainty, with analysts predicting a potential recession if tariffs persist. The White House hinted at openness to negotiations, but the frenzied rollout left investors and businesses scrambling to assess the damage. The policy marks the highest tariffs in over a century, challenging decades of U.S.-led free trade norms, per the New York Times.

China Restricts U.S. Investments as Trade Tensions Rise

Bloomberg reported on April 2 that China has begun limiting its companies from investing in the U.S., aiming to bolster leverage in looming trade talks with the Trump administration. This move, confirmed by sources familiar with the matter, comes as a counter to escalating U.S. tariffs and reflects Beijing’s strategic shift amid deteriorating relations.

Reuters highlighted that the restrictions could chill U.S.-China economic ties further, with potential ripple effects on Wall Street, already reeling from tariff news. Analysts suggest China’s play is both defensive and offensive, preparing for a prolonged trade standoff while protecting its domestic markets. The Financial Times noted this could accelerate decoupling trends in global finance.

Wall Street Plunges Amid Recession Fears

Reuters reported on April 3 that Wall Street saw one of its worst days in years, with stocks diving as Trump’s tariff announcements fueled recession worries. The S&P 500 and Dow recorded significant losses, driven by concerns over disrupted trade and rising costs, while the U.S. investment-grade credit risk gauge hit its highest since November 2023.

Bloomberg added that the selloff was exacerbated by a broader market correction, with investors fleeing equities for bonds. The New York Times emphasized the policy uncertainty clouding the economic outlook, noting that businesses may halt hiring and investment if tariffs persist. The bruising quarter’s end underscored a shift from earlier highs, per Reuters.

Fed’s Powell Outlines Tariff Inflation Strategy

Bloomberg reported on April 3 that Fed Chair Jerome Powell unveiled a plan to monitor tariff-driven inflation, acknowledging the complexity of assessing its impact. With Trump’s tariffs threatening higher prices, Powell signaled the Fed might adjust its stance, though he stopped short of committing to rate changes, leaving Wall Street guessing.

The Wall Street Journal noted that Powell’s cautious approach reflects the Fed’s bind: balancing inflation risks against a slowing economy. Analysts speculate the Fed could either hold steady or cut rates aggressively, depending on tariff fallout, with Bloomberg citing a split among Wall Street forecasts. The New York Times framed this as a test of Fed independence under political pressure.

Apple Stock Plunges as Tariffs Hit Production Hubs

Yahoo Finance reported on April 3 that Apple Inc.’s stock nosedived after Trump’s tariffs targeted Asian suppliers, threatening its iPhone production network. Despite years of diversifying supply chains, the company remains exposed, with Bloomberg Intelligence predicting margin pressure unless prices rise.

Reuters noted that the tariffs, effective April 9, could disrupt Apple’s growth plans, with analysts doubting consumer appetite for higher prices. The Wall Street Journal highlighted Apple’s lobbying efforts for relief, though the White House’s stance remains firm, prioritizing domestic manufacturing.

Editor’s Note of the Day

Major Earnings

Delta Air Lines, Inc. (NYSE: DAL) – April 9, Before the Open

As Delta Airlines prepares to report its next earnings, stakeholders are zeroing in on the company’s ability to maintain its momentum in premium revenue growth, a standout performer in recent quarters. During the Q4 2024 earnings call on January 10, 2025, management underscored their optimism about premium offerings, which continue to drive financial success, while also pointing to potential upside in the main cabin due to reduced industry capacity creating a tighter supply environment. Analysts are particularly curious about external factors like the late Easter holiday in 2025, which management noted could soften March demand but lift overall travel later in the year, especially in the June quarter. Beyond revenue trends, there’s attention on Delta’s operational strategy, including plans to retire approximately 30 aircraft in 2025 to streamline its fleet and boost efficiency. Investors are likely watching how these moves, paired with steady demand for air travel, position Delta in a competitive landscape.

Delta’s management provided clear guidance for 2025, setting expectations for both the near term and the full year. For the March quarter, the company anticipates revenue growth of 7% to 9%, with earnings per share (EPS) projected between $0.70 and $1.00, reflecting a cautious but optimistic start to the year despite the Easter timing challenge. Looking at the full year, Delta is more bullish, forecasting EPS to exceed $7.35 and free cash flow to surpass $4 billion. These projections signal confidence in sustained travel demand, particularly for premium services, and an ability to capitalize on a favorable market structure, making Delta a key stock to watch for investors seeking exposure to the airline sector’s recovery and growth.

Constellation Brands, Inc. (NYSE: STZ) – April 9, After Market Close

Heading into its earnings report, Constellation Brands is under scrutiny for its ongoing push toward premiumization and innovation, especially in its powerhouse beer segment. In the Q3 2025 earnings call on January 5, 2025, management highlighted efforts to expand in the wine and spirits categories while leaning on the strength of their beer portfolio—think brands that resonate with premium-seeking consumers. Analysts are probing how the company will respond to shifting consumer preferences and rising competition in the beverage space, with management touting brand loyalty and savvy marketing as their edge. Investors are keen to see if Constellation can maintain its market share in a crowded industry, with all eyes on whether its premium focus can continue delivering outsized growth in a potentially volatile economic environment.

Constellation Brands offered a robust outlook for fiscal 2025, projecting net sales growth of 6% to 8%, driven largely by strong demand for its premium beer offerings—a testament to their successful positioning in the market. On the earnings front, the company expects adjusted EPS to land between $13.50 and $14.00, signaling steady profitability even as it invests in growth initiatives across its portfolio. These figures reflect a belief that their strategic bets on premiumization and brand strength will pay off, making Constellation a compelling story for investors looking at consumer goods with resilience and upside potential. The earnings report will be a critical test of whether these projections hold amid evolving tastes and competitive pressures.

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