Equity rally set to pause amid ongoing tariff uncertainty and earnings news

The S&P 500 futures are down 12 points and are trading 0.2% below fair value, the Nasdaq 100 futures are down 63 points and are trading 0.3% below fair value, and the Dow Jones Industrial Average futures are down 179 points and are trading 0.5% below fair value.

Contracts linked to the S&P 500, Nasdaq 100, and Dow industrials are lower after solid gains in the equity market this week.

There was some hope for de-escalation in the trade war with China amid indications that China could implement tariff exemptions on medical equipment and certain industrial chemicals, similar to what was offered during President Trump’s first term.

The 10-yr yield is three basis points lower at 4.28% and the 2-yr yield is unchanged at 3.79%.

In corporate news:

• Alphabet (GOOG 168.82, +7.35, +4.6%): beats by $0.80, beats on revs, Google Advertising revenue up 8.5%, Google Cloud revenue up 28.1%; Authorizes repurchase up to additional $70.0 bln of Class A and Class C shares, increases quarterly dividend by 5%; Could see variability in cloud revenue growth, depending on capacity deployments each quarter
• T-Mobile (TMUS 247.33, -14.85, -5.7%): beats by $0.11, beats on revs
• Gilead Sciences (GILD 102.00, -4.15, -3.9%): beats by $0.03, misses on revs; reaffirms FY25 EPS guidance
• Intel (INTC 19.92, -1.57, 7.4%): beats by $0.12, beats on revs; guides Q2 EPS below consensus, revs below consensus; Applying streamlining approach across the company
• Eastman Chemical (EMN 79.00, -1.82, -2.3%): beats by $0.02, misses on revs; guides Q2 EPS below consensus

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Originally Posted on April 25, 2025 – Equity rally set to pause amid ongoing tariff uncertainty and earnings news