Stock Market Update – April 25, 2025 at 04:53 PM

Surveys indicate that many Americans (64%) are more worried about running out of money in retirement than the prospect of dying. This fear is particularly prevalent due to concerns about high inflation, inadequacy of Social Security benefits, and high taxes. The stock markets have recently experienced disturbances due to new tariff policies, which have led to speculation about increasing inflation. As the continuity of benefits under new leadership at the Social Security Administration is uncertain, retirement confidence is likely to be negatively impacted.

Despite initial concerns at the beginning of the week due to President Trump’s critique of Federal Reserve Chairman Jerome Powell and lack of trade deals, the S&P 500 is on track to experience a 4% increase due to the shift in sentiments.

GE Vernova, a company specializing in making and servicing power equipment, emerged as a big winner. The company’s quarterly results showed a revenue rise of 15% year over year and adjusted EBITDA increasing by $300 million. The company managed to secure $10.2 billion worth of orders in the first quarter.

Financial stocks such as Morgan Stanley and JPMorgan have been performing impressively despite recent market volatility. This performance has been attributed to looser regulations under the Trump presidency. High-quality stocks with solid dividend yields have been proposed by the Bank of America as a hedge against market turbulence.

Other companies performing well are Alphabet, reporting better-than-expected first-quarter results, and Tesla, whose share value has surged by 10%, as the broader market attempts to recover from a significant sell-off in April. However, Intel experienced a downfall with a 7% decline following a disappointing current quarter guidance.

In contrast, T-Mobile shares fell by 11% after missing Wall Street estimates for wireless subscribers in the first quarter.

The U.S. stock market has experienced a short period of volatility after the recent announcements of tariff increases, with consumers showing a mixed reaction. Notably, car sales saw a boost in March, as consumers rushed to purchase vehicles before the tariff-related price increases take effect. Car sales jumped 5.3% while sales excluding motor vehicles increased only by 0.5%. On the other hand, there’s a more conservative spending in other sectors such as leisure and business travel which reportedly declined.

This week saw stocks on a three-day winning streak with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite up by **2.5%**, **3.8%**, and **5.4%** respectively. The Nasdaq’s strong performance has been mainly driven by the recovery in megacap tech stocks.

However, some analysts predict continued volatility especially heading into next week’s big tech earnings reports. The outcome of the trade negotiations could affect the market’s behavior significantly. U.S. tariffs, especially those relating to China, are expected to create significant impacts across various industries.

On the other hand, some companies like Alphabet and GE Aerospace have shown resilience amidst the tariff concerns. Alphabet recorded a 12% revenue growth for the first quarter dominated by strength in search and advertising, despite the warning of potential impact on its ad business due to the ongoing trade war. Bank of America has reiterated a buy rating for GE Aerospace, citing its proactive tariff mitigation strategy and operational strength.

Consumer spending habits on big-ticket items have also shifted due to tariff concerns. A NielsenIQ survey found that around 35% of U.S. consumers planned to delay major purchases such as homes, cars, or appliances due to tariffs.

Looking ahead, there are several market indicators to watch out for. The progress on trade talks, the performance of tech companies’ earnings, and crucial economic data including the jobs data and the personal consumption expenditures price index, among other factors, will likely shape the market dynamics in the coming weeks.