Tariff talks and headline volatility continue to weigh on the markets, as investors try to get through key events and find the positives.
Thursday’s TLDR
Tariffs sink yesterday’s rally
Nvidia delivers earnings beat
Charting Goldman Sachs
What’s happening?
Markets were rockin’ yesterday afternoon. At their highs, the S&P 500 was up 0.9% and the Nasdaq 100 was up 1.3%. Both indices were looking to snap a four-day losing streak and were on track to do so with a strong upward punch.
Then President Trump’s tariff talks started to hit the tape in the afternoon.
At first, markets only tipped lower. But by late afternoon, both indices were in the red before ultimately eking out minor gains at the end of the day.
Between Nvidia’s earnings after the close and the tariff talk — which calls for tariffs on Mexico and Canada to go into effect on April 2nd, and for a round of 25% tariffs to be applied to the EU — investors’ mood shifted quickly from morning hype to risk-off in the afternoon.
Now though, we’re seeing a bit of a relief rally this morning.
Nvidia delivered solid results (more on this in the “What Wall Street is watching” section), while investors are starting to view tariffs as a negotiating tactic rather than the start of a full-blown trade war.
Let’s get through GDP today and the PCE report tomorrow.
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The setup — Goldman Sachs
Goldman Sachs had an explosive start to 2025, rallying over 17% at one point this year. Shares have since pulled back, falling from a record high near $672 to a recent low of $606.
For now, the stock is finding support around the 50-day moving average and a prior resistance zone between $600 and $610. The big question is, will this prior resistance zone act as current support?
If GS can stay above the $600 level, bulls may be able regain momentum and look for a larger bounce to the upside. Remember, financials are doing well this year and are the third-best performing sector in the S&P 500 so far in 2025, up 5.2%.
However, if the stock is unable to find support and breaks below $600, the stock could see more downside selling pressure.
Analysts expect about 14% earnings growth this year, while shares trade at roughly 13 times 2025 earnings expectations.
What Wall Street is watching
NVDA – Nvidia beat on Q4 revenue and earnings estimates, and spoke optimistically about its Blackwell shipments. The firm delivered a strong revenue outlook, but management’s gross margin guidance of 71% was slightly below estimates of 72%. They said the focus is on maximizing Blackwell shipments right now, an explanation investors seem okay with given that shares are up slightly in pre-market trading. Check out Nvidia’s chart.
SNOW – Shares of Snowflake are popping this morning, up about 12% after the firm delivered a top- and bottom-line earnings beat last night. Earnings of 30 cents a share easily beat expectations of 18 cents a share, while management’s outlook was solid.
AI – C3.ai stock is down slightly this morning after the firm’s earnings report. The company beat on earnings and revenue expectations, but its outlook left investors wanting a little more.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.
