Total 2025 Q1 earnings for the S&P 500 index are expected to be up +5.9% from the same period last year on +3.9% higher revenues, which would follow the +14.1% earnings growth on +5.7% revenue growth in the preceding period.
In the new Trump economy, there will be clear winners and losers. Those stocks that are globalized will suffer while those that are primarily domestic will succeed.
Shares of computer processor maker AMD (NASDAQ:AMD)
fell 8.4% in the morning session after China imposed a 34% tariff on all U.S. imports amid escalating trade war tensions. This was especially rough for the US chipmakers because a big chunk of their business leans on demand out of China. The new tariffs not only threaten to erode profit margins but also risk reducing market share.
Adding to the uncertainty, the Trump administration signaled the possibility of further regulatory action against the sector. Although semiconductor firms were notably excluded from the broad tariffs unveiled on April 2, 2025, their exclusion raised concerns that targeted restrictions could still be forthcoming.
Shares of iPhone and iPad maker Apple (NASDAQ:AAPL) fell 5.9% in the afternoon session after China imposed a 34% tariff on all U.S. imports amid escalating trade war tensions. This was partly in response to the "reciprocal tariffs" announced by the Trump administration the previous day, with levies on Chinese goods estimated to be as high as 50%.
Wall Street's decline blamed on tech stocks, not Trump's tariffs. Treasury Secretary Scott Bessent says reassessment of AI valuations triggered selloff.
Federal Reserve Chair Jerome Powell signaled patience on rate cuts amid rising uncertainty, while U.S. President Donald Trump framed the current moment as an opportunity to lower borrowing costs and sustain economic momentum.
China’s tariffs target a broad swath of U.S. goods and came alongside other punitive measures, including an expanded “unreliable entities list” and an antitrust investigation into DuPont.
