Here Were the Big S&P 500 Movers on Wednesday
April 09, 2025 07:09 PM EDT
Advancers
- The technology sector outperformed as stocks that had been clobbered by concerns about the impact of extensive tariffs clawed back some of their recent losses. Shares of microcontroller and analog chipmaker Microchip Technology (MCHP) jumped 27.1%, notching the best daily performance of any S&P 500 stock, while shares of power management semiconductor provider Monolithic Power Systems (MPWR) popped 23.4% higher.
- Advanced Micro Devices (AMD) shares, which have garnered significant attention because of the firm’s AI chips, surged 23.8%. The push higher for the stock came in spite of a downgrade to “sector weight” from “overweight” by analysts at KeyBanc Capital Markets, who cited downside risks to gross margins amid increasing price competition with Intel (INTC).
Nathan Laine / Bloomberg / Getty Images
- Delta Air Lines (DAL) lifted the airline industry by reporting better-than-expected sales and profit results for its fiscal first quarter. Although Delta announced plans to cut back on capacity growth in the second half of the year as it navigates the uncertain economic environment, its shares took off following the strong earnings report, gaining 23.4% on Wednesday. Meanwhile, shares of rival carrier United Airlines (UAL) soared 26.1%.
- Telsa (TSLA) shares gained 22.7% in the wake of the tariff reprieve. In addition, the research firm Benchmark included the electric vehicle maker’s stock among its best investment ideas, noting a more attractive valuation following recent price declines, the potential for a recovery in sales driven by a new vehicle launch, and potential catalysts from Tesla’s robotaxi and self-driving initiatives.
Decliners
- The heaviest loss among S&P 500 constituents was on Dollar General (DG) shares, which slipped 1.9%. The stock managed to buck the downtrend in the broader markets this week as concerns about deteriorating macroeconomic conditions boosted the outlook for cost-conscious consumers seeking bargains at the discount retailer’s stores. Dollar General shares also attracted an upgrade earlier this week from analysts at Melius Research, who highlighted the company’s relative lack of exposure to tariffs.
- Shares of MarketAxess Holdings (MKTX), which operates an electronic trading platform for fixed-income securities, fell 1.5% after UBS trimmed its price target on the stock. Although analysts lifted their first-quarter earnings estimates to reflect increased credit volume, they anticipate that lower pricing could restrain revenue growth during the period.
What to Expect From Thursday’s CPI Inflation Report
April 09, 2025 06:30 PM EDT
Consumer price increases likely slowed in March due to cheaper gas.
A Bureau of Labor Statistics report on the Consumer Price Index Thursday is expected to show the inflation gauge rose 2.6% over the last 12 months in March, down from a 2.8% annual increase in February, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal. That would be the lowest annual inflation rate since September, as falling energy prices helped out household budgets.
If the report matches expectations, it would suggest that the post-pandemic burst of inflation is continuing to fade. However, beyond March, the outlook largely depends on President Donald Trump’s tariffs. Economists expect import taxes will push up the prices of many consumer products in the coming months.
The tariffs may already be influencing consumer prices. Economists are watching for signs of a 20% tariff on Chinese products, imposed in March, to show up in the CPI figures. On top of that, auto prices may have been driven higher after shoppers flocked to dealerships to get ahead of the tariffs before they went into effect April 4. Auto price increases could contribute to a jump in “core” CPI prices, which exclude volatile prices for food and energy, economists at Nomura predicted.
Tariff Pause Could Change Tone of Earnings Calls
April 09, 2025 06:12 PM EDT
The tariff pause comes just days before big banks are slated to kick off first-quarter earnings season, with JPMorgan Chase (JPM) scheduled to report on Friday. Its CEO Jamie Dimon warned in his annual letter to shareholders on Monday that the tariffs would slow down growth, and early Wednesday Dimon called a recession “a likely outcome” of the tariffs. Bank stocks surged in response to the tariff pause Wednesday.
Wednesday’s pause and rally could change the tone of earnings calls in the coming weeks.
“This pause may provide companies with a clearer backdrop for their guidance, offering some relief to a market hungry for direction,” wrote Gina Bolvin, President of Bolvin Wealth Management Group, on Wednesday.
Analysts have been expecting tariff uncertainty to cause the number of companies offering sales and earnings guidance to drop sharply this quarter.
Historic Day of Gains for Major Indexes
April 09, 2025 05:46 PM EDT
Stocks turned in their best performance in years on Wednesday after President Donald Trump announced a pause in most of the wide-ranging tariffs that had sent markets reeling over the past week.
On a percentage basis, Wednesday was the best day for the S&P 500 since October 2008 during the Great Recession. The Nasdaq Composite posted its biggest one-day gain since January 2001 at the height of the Internet Bubble, while the Dow turned in its best performance since the early days of the Covid pandemic in March 2020.
In terms of points, it was biggest gain ever for all three indexes, more than double the second-biggest for both the S&P 500 and Nasdaq.
Today was also another extraordinarily volatile day for stocks, which have whipsawed on trade-related developments over the past week,
From its morning low to its afternoon high, the Dow moved 3,500 points. That came after moves of 2,600 and 2,300 points on Monday and Tuesday, respectively.
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Despite Wednesday’s historic gains, the major indexes are still below where they were a week ago just before Trump announced his plan for sweeping tariffs.
For the year, the Dow has narrowed its decline to 4.6%, while the S&P 500 and Nasdaq are down 7.2% and 11.3%, respectively, so far in 2025.
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Goldman Reverses Recession Call After Tariff Pause
April 09, 2025 04:53 PM EDT
Economists at Goldman Sachs walked back their recession forecast Wednesday after President Donald Trump announced a 90-day pause on tariffs that had threatened to destabilize the economy.
Economists at the investment bank sent out a note Wednesday afternoon calling for a 45% chance of a recession within a year. They took back a call they had made just over an hour earlier, in which they had bumped the chances of a recession up to 65%.
The forecasting team pulled back on their recession predictions after Trump paused some of the “reciprocal” tariffs against trading partners that had gone into effect hours before.
Saul Loeb / AFP / Getty Images
The sudden about-face highlighted the difficulty of predicting the trajectory of the economy amid Trump’s frequent changes to trade policy. Economists have highlighted uncertainty about trade policy as a major risk to the economy since businesses may delay investment and hiring decisions until they have a better idea of what rules will apply long term.
Goldman’s 45% recession chance is still elevated from a few months ago. When Trump was elected, the bank predicted just a 15% chance of a recession as the economy appeared headed for a “soft landing” with a resilient labor market and declining inflation. Since then, Trump’s protectionist trade policies and the uncertainty surrounding them have raised the chances of reigniting inflation, slowing economic growth, and driving high job losses, according to forecasters.
Airlines, Cruise Stocks Soar on Tariff News
April 09, 2025 04:32 PM EDT
Travel-related stocks were among the big gainers on Wednesday following news of the delay in tariffs.
United Airlines (UAL) was among the best-performing stocks in the S&P 500 Wednesday, with shares leaping 26%. Delta Air Lines (DAL) was close behind; its shares were up more than 23%.
Cruise operators Norwegian Cruise Line Holdings (NCLH) and Carnival (CCL) jumped 18% and 17%, respectively.
Delta on Wednesday reported better-than-expected first-quarter results but pulled its earnings outlook in light of uncertainty about tariffs and the economic outlook. CEO Ed Bastian warned that leisure and business travel demand stalled in late February, and said recent consumer behavior resembled what would be expected during a recession.
Airlines and cruise operators are less directly affected by high tariffs than companies that produce and sell goods. But their services are highly discretionary, making them vulnerable to economic slowdowns and cratering consumer confidence, which has recently slumped to its lowest level since 2022.
U.S. airlines are also facing lower demand from international travelers, some of whom are forgoing American vacations in light of the Trump administration’s antagonism toward U.S. allies like the European Union and Canada. Trump’s severe crackdown on immigration has also put off some prospective travelers and prompted several countries to issue warnings about traveling to the U.S.
Bitcoin, Crypto Stocks Jump After Tariff Pause
April 09, 2025 03:18 PM EDT
Shares of cryptocurrency-tied companies jumped along with the price of bitcoin Wednesday afternoon after President Donald Trump issued a 90-day pause on widespread “reciprocal” tariffs.
Bitcoin (BTCUSD), which traded as low as $74,500 Wednesday morning, was trading below $77,000 at around when President Trump wrote in a Truth Social pos that he was pausing the duties effective immediately, and that a base tariff of 10% on most countries. The largest cryptocurrency soon soared, along with risk assets like equities, surging to roughly $82,000 in recent trading.
Shares of bitcoin buyer Strategy (MSTR), formerly known as MicroStrategy, and trading platform Robinhood Markets (HOOD) jumped 24% and 20%, respectively. Crypto exchange Coinbase (COIN) soared 19%, bitcoin miner MARA Holdings (MARA) added 16%, and Riot Platforms (RIOT) gained 11%.
Trump Issues 90-Day Pause on ‘Reciprocal’ Tariffs
April 09, 2025 02:41 PM EDT
Just hours after implementing tariffs of varying levels on trade partners worldwide, President Donald Trump said he would pause the “reciprocal” import taxes for 90 days.
In a post on Truth Social, Trump said the pause on the deficit-based tariffs would be effective immediately, and a base tariff of 10% would be enforced. Trump said he felt the pause was needed because “more than 75 countries” had contacted his administration to make trade deals.
“Each one of these solutions is going to be bespoke; it’s going to take some time … so that’s why we’re doing the 90-day pause,” Treasury Secretary Scott Bessent said at a press conference after Trump’s post.
Saul Loeb / AFP / Getty Images
The widespread tariffs of varying degrees on trading partners worldwide went into effect just after midnight Wednesday. The “reciprocal” tariffs included 20% on goods from the European Union, 32% on Taiwan, 24% on Japan, and 25% on Vietnam.
Bessent said the base tariff also applies to Mexico and Canada, which were not included in the original round of “reciprocal” tariffs announced a week ago. Trump’s post also said that China would not receive a reprieve and tariffs on the country would increase to 125%.
Watch These Apple Stock Price Levels Amid Tariff Volatility
April 09, 2025 12:35 PM EDT
Apple (AAPL) shares moved higher Wednesday after losing more than a fifth of their value over the previous four sessions amid concerns about the impact of a trade war between the U.S. and China.
The recent decline, which saw Apple briefly lose its title as the world’s most valuable company, took place as investors braced for the Trump administration’s sweeping tariffs to take effect, notably a 104% levy on imports from China, where an estimated 90% of the company’s products are assembled.
Apple shares were up more than 4% at around $180 in early-afternoon trading, making it one of the top gainers in the S&P 500.
Selling in Apple shares has accelerated after the price broke down below the neckline of a head and shoulders pattern last month. More recently, the stock’s dramatic intraday reversal during Tuesday’s trading session saw the price close decisively below the closely watched 200-week moving average.
While the relative strength index (RSI) confirms bearish price momentum, the indicator has slipped into oversold territory, increasing the likelihood of investors seeking short-term bounce opportunities.
Investors should eye major support levels on Apple’s chart around $166, $155, and $138, while also monitoring a key overhead area near $197.
Read the full technical analysis piece here.
Pharma Stocks Sink as Trump Says ‘Major Tariffs’ Coming
April 09, 2025 11:14 AM EDT
Shares of several major pharmaceutical companies slumped Wednesday morning as President Donald Trump threatened tariffs on the industry.
Speaking at a Tuesday event hosted by the National Republican Congressional Committee, Trump said his administration will “be announcing very shortly a major tariff on pharmaceuticals” in an attempt to force companies to shift manufacturing to the U.S.
“We’re going to tariff our pharmaceuticals, and once we do that they’re going to come rushing back into our country because we’re the big market,” Trump said Tuesday. “The advantage we have over everybody is that we’re the big market. So we’re going to be announcing very shortly a major tariff on pharmaceuticals, and when they hear that, they will leave China, they will leave other places because they have to sell, most of their product is sold here.”
Shares of AstraZeneca (AZN), Pfizer (PFE), Eli Lilly (LLY), Novo Nordisk (NVO), Johnson & Johnson (JNJ), GSK (GSK), and Sanofi (SNY) all declined Wednesday morning
Pharmaceuticals were one sector exempted from the wide-ranging tariffs announced last week, along with semiconductors.
Trump has cited a desire to motivate companies to shift manufacturing back to the United States. Experts have said the rise in prices and potential recession could cause many jobs to be lost before those potential manufacturing job gains are realized, however.
What to Watch For From Big Bank Earnings
April 09, 2025 10:37 AM EDT
As U.S. banks begin reporting their quarterly earnings on Friday, investors will watch to see whether fears about tariffs are hampering clients’ borrowing appetites and ability to repay loans.
Banks’ results coming soon from the first quarter will matter, but the fallout from April 2, which President Donald Trump dubbed “Liberation Day,” may be more consequential. President Donald Trump’s tariff plans have raised recession risks and triggered sell-offs in stock markets, complicating the outlook for the banking industry.
“While banks might not be directly impacted by tariffs, they are exposed to every industry that is,” Jason Goldberg, an analyst at Barclays, wrote in a note Friday.
The latest bout of uncertainty has hammered bank stocks. The KBW Nasdaq Bank Index (BKX) is down about 18% this year through Tuesday’s close, outpacing the decline in the S&P 500 index, as investors worry that an economic downturn will make it hard for consumers and businesses to repay debts. The KBW Nasdaq index of regional banks or KRX, is off a similar amount.
The last week has “completely upended” expectations for the industry, Scott Siefers, a bank analyst at Piper Sandler, wrote on Monday.
“We doubt we’ll get all the answers we want with earnings, but at least banks will have the chance to respond to the emerging backdrop and to shape expectations,” Siefers said.
Read the full article here.
Delta Says Growth ‘Largely Stalled’ Amid Uncertainty
April 09, 2025 10:06 AM EDT
Delta Air Lines (DAL) shares rose in premarket trading Wednesday after the carrier’s fiscal first-quarter results came in better than analysts had expected.
Delta reported adjusted earnings per share (EPS) of $0.46 on operating revenue of $14.04 billion. Analysts polled by Visible Alpha had forecast $0.39 and $13.89 billion, respectively.
The airline reported passenger revenue per available seat mile of 16.78 cents and cost per available seat mile of 19.69 cents; analysts had expected Delta to lose about 2.8 cents per ASM transporting passengers. Delta and domestic rivals United Airlines (UAL), American Airlines (AAL), and Southwest Airlines (LUV) all were profitable but lost money flying passengers in 2024.
Delta said it expects second-quarter revenue to rise or decline by 2% and adjusted EPS from $1.70 to $2.30, below the $2.41 consensus. The airline said it is not affirming or updating full-year projections at this time “given current uncertainty.”
“With broad economic uncertainty around global trade, growth has largely stalled,” CEO Ed Bastian said. “In this slower-growth environment, we are protecting margins and cash flow by focusing on what we can control. This includes reducing planned capacity growth in the second half of the year to flat over last year while actively managing costs and capital expenditures.”
Analysts have said that the Trump administration’s new tariffs could push the U.S. economy into a recession, which would be a big hit to major airlines. UBS analysts on Monday wrote that they expected airlines to suspend their full-year outlooks amid tariff uncertainty, while Bank of America analysts said they think airlines will be conservative in their second quarter and full-year projections.
Delta shares rose 7% in early trading to lead S&P 500 gainers. They entered Wednesday down nearly 50% from a record-high close of $69.06 in early February.
Apple Under Pressure Amid China Trade Spat
April 09, 2025 09:30 AM EDT
Apple (AAPL) shares were down slightly in premarket trading as China retaliated against newly imposed U.S. tariffs.
The stock fell 5% on Tuesday, causing the company to lose its status as the world’s most valuable by market capitalization. Heading into today’s session, the iPhone maker has a market cap of less than $2.6 trillion, compared with software maker Microsoft’s (MSFT) $2.65 trillion.
Apple shares have lost 23% of their value in the four sessions since President Trump announced he would increase the tariff rate on Chinese goods as part of a wide-ranging plan to tax imports. After those levies went into effect overnight, China said this morning it would raise its tariff on imports from the U.S. to 84%.
Apple, which assembles an estimated 90% of its products in China, won exemptions during the first Trump administration’s U.S.-China trade war. It’s had no such luck this time around.
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Worries about the company’s reliance on China have made its stock the worst-performing of the Magnificent Seven in the last week. Tesla (TSLA), the group’s second-worst performer, has declined about 21.5% since Trump’s tariff announcement. Amazon (AMZN), Nvidia (NVDA), and Meta Platforms (META) have all declined between 12% and 13% over the same period, while Alphabet (GOOG) and Microsoft have fallen 7.7% and 7.2%, respectively.
Apple’s slump has wiped nearly $775 billion off the company’s market value. That’s more than Tesla’s market cap and greater than those of all but seven U.S. companies (including Apple itself).
S&P 500 Down 12% Since ‘Liberation Day’
April 09, 2025 08:42 AM EDT
The S&P 500 and Dow Jones Industrial Average head into Wednesday’s session on four-session losing streaks.
The S&P 500 has lost 12.1% since President Trump late last Wednesday—a day he declared to be “Liberation Day”—announced his intention to impose wide-ranging tariffs on U.S. trading partners. The Dow has given up 10.8% over that four-session stretch.
The Nasdaq Composite, which managed to eke out slight gains on Monday before falling sharply Tuesday, has plunged 13.3% over the past four trading days.
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Major Stock Indexes Futures Point to Steep Declines
April 09, 2025 08:03 AM EDT
Futures tied to the Dow Jones Industrial Average were down 2.2%.
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S&P 500 futures were off 2.1%.
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Nasdaq 100 futures dropped 1.9%.
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