U.S. markets pushed into the green late Tuesday afternoon, shaking off gloomy economic sentiment. The Dow climbed 343 points, while the S&P 500 and Nasdaq each added about 0.6%.
The modest rally came even as consumer confidence plunged to its lowest level since mid-2020, according to the latest Conference Board data. Americans are growing more anxious about inflation and job security, with short-term expectations now below the threshold historically associated with recession risk. Still, investors appear focused – at least for now – on earnings optimism with Big Tech on deck later this week.
Mixed opening moved market sideways
Stocks opened mixed Tuesday as investors sorted through a flood of earnings reports and a fresh round of political drama.
The S&P 500 slipped 0.2%, while the Nasdaq dropped 0.3% amid ongoing tech volatility. The Dow Jones Industrial Average hovered near flat.
Also on Tuesday morning, the White House took aim at Amazon (AMZN) for reportedly planning to display President Trump’s tariffs alongside product prices — calling it a “hostile and political act.” The flap underscores growing tensions between Trump’s trade policy and corporate America, with the former increasingly coloring earnings calls and guidance suspensions across a broad range of sectors, from snacks and soda to semiconductors.
The White House further suggested Amazon should have broken out inflation under Biden in the same way it may begin breaking out Trump-era tariffs. However, this mistakes the nature of both tariffs and inflation. Tariffs are government-imposed, specific taxes on imported goods, and retailers can identify them as line items in the same way they break out sales tax and shipping fees. Inflation is a general rise in prices due to broader economic forces. It doesn’t show up as a discrete cost in a shopping cart and can’t be broken out on a receipt.
Treasury Secretary Bessent, asked to clarify if the U.S. and Beijing have spoken about tariffs specifically in recent days, declined to answer “who is talking to whom.”
Futures pointed to mixed open amid earnings deluge
U.S. stock futures were mixed early Tuesday as markets braced for a high-stakes earnings deluge. Dow Jones Industrial Average futures rose 0.3%, while the S&P 500 was flat. Nasdaq futures ticked down slightly.
With heavyweight earnings reports due from Visa (V), Booking Holdings (BKNG), and others — plus Microsoft (MSFT) and Meta (META) on deck Wednesday — investors are eyeing a volatile stretch.
GM stops buybacks, stock slips
General Motors (GM) beat first-quarter expectations with adjusted EPS of $2.78 on $44.02 billion in revenue — but shares slipped 2% premarket after GM suspended its 2025 guidance and halted its stock buyback program, citing trade uncertainty.
President Donald Trump is scrambling to contain the fallout from his 25% auto tariffs, offering automakers reimbursement for foreign parts and pledging not to stack duties atop steel and aluminum levies. Detroit welcomed the relief, but analysts warn the shifting policy could still drive up prices and snarl supply chains.
The S&P 500's $3 trillion pullback represents a rare event
At the same time, markets are digesting a rare historical statistic: The S&P 500 is down 8% since Trump’s inauguration in January, marking the worst stock market performance in a president’s first 100 days in over 50 years. Analysts blame tariff shocks, policy whiplash, and escalating trade fights. To put it in perspective: That 8% slide translates to roughly $3 trillion in lost market value.
And in one of the more surreal power plays of the day, a New York Times (NYT) investigation revealed that Trump’s crypto firm, World Liberty Financial — majority-owned by the Trump family — has pulled in more than $550 million in sales while directly benefiting from regulatory changes he himself has enacted. It’s a company that blurs the line between public power and private profit, with global investors lining up for access to both.
Coke profits bubble up
In corporate earnings, Coca-Cola (KO) turned in a mixed first quarter. Global unit case volume rose 2% and organic revenue climbed 6%, but reported net revenue declined 2%, largely due to currency headwinds and re-franchising. Operating income surged 71% thanks to strong cost management and a favorable year-over-year comp.
However, free cash flow turned negative due to a one-time $6.1 billion payment related to its 2020 Fairlife acquisition. Free cash not including one-offs equaled $558 million. The company reaffirmed full-year guidance, leaning on international momentum and its “all-weather strategy.”
Spotify adds 5 million subscribers to top 268 million
Spotify (SPOT) also posted a strong quarter, adding 5 million premium subscribers — its best Q1 subscriber growth in years — and growing revenue 15% year-over-year to €4.2 billion. Monthly active users reached 678 million.
Still, shares slid nearly 8% in premarket trading after the company forecast lower Q2 operating profit due to elevated payroll taxes, even while citing expectations for continued user growth.
Starbucks and Booking report earnings after the bell
After the bell, all eyes turn to Starbucks (SBUX), Booking Holdings, Mondelez (MDLZ), and Snap (SNAP). Meanwhile, Wall Street’s biggest banks have finally closed the book on Elon Musk’s Twitter buyout debt, selling the final $1.2 billion chunk of a long-hung $13 billion deal — once considered the most toxic LBO financing since 2008, per a Wall Street Journal report.
Earnings rodeo shifts to tech
On Wednesday, the narrative shifts to Big Tech, with Microsoft and Meta poised to report after the bell. Together, the two giants command over $4 trillion in market cap and are seen as bellwethers for AI innovation and advertising resilience. Microsoft’s Copilot monetization and Azure margins will face fresh scrutiny, while Meta investors will be watching closely for Reels momentum and updates on ongoing antitrust probes.
