As the financial world braces for another eventful week, several key developments are poised to move the markets from tech earnings reports to macroeconomic data and global trade policy turbulence. Here’s what investors should be watching over the next few days.
1. Alphabet and Tesla to Launch Big Tech Earnings
This week marks the beginning of earnings season for the elite group of tech giants known as the “Magnificent Seven.” Alphabet, Google’s parent company, and electric vehicle powerhouse Tesla will be the first to disclose their latest quarterly performance.
Markets watchers are eager to see whether these two influential firms can help steady investor sentiment, which has been shaken by the uncertainty surrounding President Donald Trump’s latest moves on trade tariffs. These tech giants have traditionally been the engines of growth for U.S. equities, but 2025 hasn’t been kind to them so far, with many seeing share prices drift lower.
Alphabet faces additional scrutiny due to its controversial spending on artificial intelligence, which has raised eyebrows among investors. Compounding the tension is a recent legal blow a judge ruled that the company holds an unlawful monopoly in digital advertising, sparking discussions about a potential breakup of its ad division.
Tesla, meanwhile, finds itself navigating a mixed bag of headlines. The company has reportedly delayed the release of a more affordable version of its Model Y a move that could alienate cost-sensitive customers. There’s also speculation that sluggish demand has led to scaled-back production targets for the Cybertruck. Adding fuel to the fire is Elon Musk’s closeness to Trump, whose plans to shrink the size of government are causing political waves.
2. Corporate Earnings Ramp Up Across Sectors
Beyond Alphabet and Tesla, a broad swath of Corporate America is preparing to report earnings, providing deeper insights into how businesses are coping with evolving economic pressures.
Among the heavy-hitters on this week’s earnings calendar are Boeing, Intel, IBM, Merck, Procter & Gamble, and American Airlines. Boeing’s results come at a turbulent time, as China has reportedly instructed its airlines to halt new orders from the U.S. aerospace manufacturer a potential retaliation amid the simmering trade tensions between Beijing and Washington.
Expectations for profit growth in the S&P 500 have been tempered recently. Analysts had projected a 14% increase in earnings for 2025 at the start of the year. That forecast has now been reduced to 9.2%, according to LSEG IBES, as uncertainty around the impact of tariffs weighs on corporate outlooks.
3. Key Economic Indicators: April PMI and Consumer Sentiment
Investors will be parsing several crucial data points this week, starting with the flash U.S. Purchasing Managers’ Index (PMI) set for release on Wednesday. This will be one of the first substantial data sets to reflect the economic consequences of Trump’s tariff proposals, which were announced and then partially postponed.
Analysts expect the PMI to offer insights into business activity and supply chain disruptions, while inflation risks could also be spotlighted.
On Friday, the final readout of the University of Michigan’s consumer sentiment index for April will be released. Early indicators showed a sharp drop in sentiment, paired with a surge in one-year inflation expectations their highest level since the early 1980s. These numbers could shape expectations for Federal Reserve policy in the months ahead.
4. Spotlight on Fed Autonomy Amid Political Pressure
Also due this week is the release of the Federal Reserve’s “Beige Book,” which provides a qualitative snapshot of economic conditions across the U.S. and serves as a key reference ahead of Fed meetings.
In March, the Fed opted to hold its key interest rate steady at 4.25% to 4.50%, amid a murky outlook for inflation and trade-related disruptions. Fed Chair Jerome Powell indicated that the central bank would be cautious before implementing further policy moves, given the lack of clarity around the full economic impact of the tariffs.
Yet, Powell’s leadership is once again under scrutiny. President Trump has renewed his criticism of the Fed and threatened to remove Powell from his post, accusing him of being too slow to cut interest rates. While such a move could roil global markets, reports suggest Trump is aware of the potential economic fallout of acting on that threat.
5. Global Trade Policy at the Forefront During IMF, World Bank Meetings
In Washington, finance ministers and central bank leaders from around the world are gathering for the IMF and World Bank Spring Meetings. Trump’s aggressive trade agenda is expected to dominate discussions.
The U.S. administration is currently in the midst of a 90-day window during which it hopes to finalize a raft of trade agreements. However, analysts remain skeptical that such a fast-paced negotiation process can produce meaningful results.
One of the centerpiece events will be the IMF’s latest global economic forecast, due Tuesday. IMF Managing Director Kristalina Georgieva has issued repeated warnings about the damage that prolonged trade tensions could do to worldwide growth. She’s urged both the U.S. and its trading partners to step back from the brink and seek more collaborative solutions.
