Wall Street’s Earnings Watch: Will Corporate Giants Calm the Chaos Of Tariffs?

A crowded week of U.S. corporate results is set to test investors already shaken by President Donald Trump's recent tariff surprise, which has redesigned the global economic landscape, as reported by Reuters. On April 2, Trump declared sweeping new tariffs on imports around the world, sending the stock market into wild fluctuations.

Although the S&P 500 improved modestly last week, it remains 14% below its February high. The Cboe Volatility Index (VIX), commonly referred to as Wall Street's fear measure, spiked to 60 after the announcement, and although it has quieted to 30, it is still well above its all-time average of 17.6.

“It doesn’t mean we’re out of the woods,” said Ayako Yoshioka, senior strategist at Wealth Enhancement.

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Stock Market: Big Tech Earnings in Focus

Investors are closely watching earnings from Tesla and Alphabet, members of the "Magnificent Seven" tech giants whose stocks are sharply lower this year. Alphabet is down 20%, while Tesla has plunged 40% in 2025.

Tesla's April 22 earnings will be monitored not just for corporate performance but also because of Elon Musk's relationship with Trump. Alphabet will be questioned on how it spent money building AI infrastructure, particularly after a judge found Google had broken ad-tech monopoly laws. 

"The perception of CEOs in the future has never been so significant," wrote JJ Kinahan, CEO of IG North America.

US Tariff: Trade War Uncertainty 

The tariffs are prompting companies to reassess earnings estimates. United Airlines issued two sets of financials this week, issuing a dire warning of plummeting revenue in the event of a recession.

"Placing parameters on what might happen is the way that stakeholders make decisions in a world that is not known," stated Julian Emanuel of Evercore ISI.

Investors are also looking for reports from Boeing, IBM, Merck, Intel, and Procter & Gamble. In addition, Trump's remarks against Fed Chairman Jerome Powell and demands for rate cuts have created additional uncertainty.

With profit growth expectations now reduced to 9.2% in 2025, from 14% previously, the upcoming earnings will determine whether calmness returns or additional turmoil awaits.

Inputs from Reuters..