U.S. stocks slipped over the shortened trading week as Q1 corporate reports started to roll in.
The Standard & Poor’s 500 Index dropped 1.50 percent, while the Nasdaq Composite Index fell 2.62 percent. The Dow Jones Industrial Average lost 2.66 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, added 4.19 percent.1,2
U.S. Stocks Slide
Stocks started the four-day week with modest gains. Trade volatility subsided as several money center banks reported Q1 numbers at or above expectations.3
Stocks trended lower midweek after Federal Reserve Chair Jerome Powell expressed concern that tariffs would likely “move us further away from our goals”—including keeping inflation in check.4
Stocks were mixed on the week's last trading day as traders evaluated White House news that trade deals were progressing with Japan, China, and the European Union. The S&P 500 ended the day higher, but the Dow Industrials were under pressure after a large healthcare company gave a disappointing Q1 report.5
Source: YCharts.com, April 19, 2025.
The Fed’s Influence
Stocks were under pressure following comments from Fed Chair Powell, who expressed concern about the ability of the Fed to balance its inflation and employment goals given the current trade situation. He said, “Tariffs are highly likely to generate at least a temporary rise in inflation,” and “the inflationary effects could be more persistent.”6
These are Powell's latest remarks about tariffs. The Fed Chair made similar comments earlier this month at an event in Alexandria, Virginia.7
Footnotes and Sources
1. The Wall Street Journal, April 17, 2025
2. Investing.com, April 17, 2025
3. CNBC.com, April 15, 2025
4. CNBC.com, April 16, 2025
5. WSJ.com, April 17, 2025
6. CNBC.com, April 16, 2025
7. CNBC.com, April 4, 2025