The New York Stock Exchange ended last week positively, with the Dow Jones and S&P 500 up 0.08% while the Nasdaq increased by 0.52%. President Trump’s comments on “flexibility” in tariffs stirred investor reactions amid ongoing trade uncertainties. Disappointing earnings from FedEx and Nike negatively impacted their stocks, while Boeing benefited from a new government contract. Trading volume surged due to the quarterly expiration of options, and ten-year Treasury yields slightly rose to 4.25%.
Stock Market Overview: A Mixed End to the Week
The New York Stock Exchange closed on a positive note last Friday, thanks to a late surge, despite ongoing trade tensions that continue to cast a shadow over the market. President Donald Trump’s mention of potential “flexibility” in tariffs brought some unexpected reactions from investors. Both the Dow Jones and the S&P 500 indices saw a modest increase of 0.08%, while the Nasdaq experienced a more significant rise of 0.52%.
Market Sentiment and Tariff Discussions
“There’s definitely a sense of caution among traders, as many uncertainties regarding trade persist,” noted Angelo Kourkafas from Edward Jones in a statement to AFP. Trump’s remarks regarding tariffs caught many off guard, suggesting a shift in approach.
“While I’m not altering anything, the term flexibility holds significant weight. There will be some flexibility, but it will be reciprocal in nature,” Trump stated during a press conference in the Oval Office. Just the day before, White House spokesperson Karoline Leavitt confirmed that the so-called “reciprocal” tariffs would commence on April 2.
The concept of “reciprocal” tariffs means that the U.S. will impose the same level of tariffs on imports from a country as that country imposes on American goods. “It’s hard to predict the market’s direction, as the information landscape is ever-evolving,” Kourkafas added. He anticipates that the details surrounding the tariff plans are still being finalized, which could lead to ongoing market volatility in the near future.
Additionally, Friday’s trading session coincided with the quarterly expiration of various options and futures contracts, resulting in a substantial trading volume, as noted by Patrick O’Hare from Briefing.com. In the bond market, the yield on ten-year U.S. Treasury bonds saw a slight increase to 4.25%, up from 4.24% the previous day.
On the corporate front, some of the early trading weakness was attributed to disappointing earnings reports, particularly from FedEx and Nike. FedEx’s stock plummeted by 6.46% after the company lowered its annual forecasts, citing “weakness in the American economy” and ongoing uncertainties.
Nike also faced challenges, with shares declining by 5.46% following lower-than-expected year-over-year results. CFO Matthew Friend projected a revenue drop of approximately 15% for the current quarter, attributing the downturn to uncertainties in the operational landscape, including new tariffs, fluctuating exchange rates, and other macroeconomic pressures affecting consumer confidence.
In contrast, Boeing’s stock rose by 3.06% after Trump announced a new contract for a generation of stealth fighter jets, the F-47. This contract provides a much-needed boost for Boeing, which has been grappling with significant quality control issues and a prolonged strike that impacted its main production facilities earlier in 2024.
Meanwhile, Lockheed Martin, which competes with Boeing for defense contracts, saw its stock drop by 5.79%. In the semiconductor sector, Micron Technology’s shares fell by 8.04% despite reporting quarterly earnings and forecasts that surpassed analysts’ expectations, including a revenue projection of $8.8 billion for the upcoming quarter.