Market Recap: Wall Street Declines as Investors Brace for Big Tech Earnings Week

Major Indexes Pull Back After Strong Previous Week

U.S. stock markets retreated on Monday, April 28, 2025, as investors positioned themselves ahead of a crucial week filled with high-profile earnings reports and important economic data. The major indexes pulled back after posting significant gains last week, with technology stocks leading the decline.

The S&P 500 (^GSPC) fell 0.54% to close at 5,495.54, while the Dow Jones Industrial Average (^DJI) dropped 0.16% to 40,048.29. The tech-heavy Nasdaq Composite (^IXIC) experienced the steepest decline, falling 0.88% to 17,229.71. This pullback follows last week’s impressive performance where the S&P 500 gained 4.6%, the Nasdaq climbed 6.7%, and the Dow advanced 2.5%.

Market volatility, as measured by the CBOE Volatility Index (VIX), increased 6.52% to 26.46, reflecting heightened investor uncertainty ahead of this week’s packed economic calendar.

Tech Giants Lead Market Decline

AI chipmaker Nvidia (NVDA) was among the day’s biggest decliners, dropping 3.63% to $106.98 amid reports that China’s Huawei Technologies is preparing to test its own AI processor, potentially threatening Nvidia’s market dominance. Tesla (TSLA) also fell 1.78% to $279.88, continuing its volatile trading pattern of recent weeks.

Other notable movers included Domino’s Pizza (DPZ), which sank over 3% after reporting disappointing first-quarter earnings with a surprise decline in same-store sales as consumers pulled back on spending amid economic uncertainty.

Upcoming Earnings Season in Focus

This week marks a critical period for the first-quarter earnings season, with approximately 36% of S&P 500 companies scheduled to report results. Investors are particularly focused on the “Magnificent Seven” tech giants, with several key reports on the horizon.

Microsoft (MSFT) and Meta Platforms (META) are set to report on Wednesday, April 30, while Apple (AAPL) and Amazon (AMZN) will release their earnings on Thursday, May 1. Other notable companies reporting this week include Visa (V), Pfizer (PFE), UPS (UPS), Starbucks (SBUX), and Coca-Cola (KO) on Tuesday, followed by Qualcomm (QCOM) and Mastercard (MA) later in the week.

So far, the earnings season has been relatively positive, with S&P 500 earnings now expected to climb 9.7% in the first quarter from a year ago, according to LSEG IBES data.

Trade Policy Developments Remain in Focus

Investors continue to monitor developments in U.S. trade policy, particularly regarding tariffs. The market has been navigating an evolving global trade landscape, with recent signs that the U.S. and China might be willing to de-escalate tensions providing some optimism last week.

However, competing claims from Beijing and President Trump about the state of negotiations have maintained uncertainty in the markets. Investors are watching company earnings reports and executive comments for indications of how Trump’s tariff policies might impact corporate outlooks.

Economic Data on the Horizon

Beyond earnings, traders are awaiting crucial economic data releases this week, including the monthly U.S. payrolls report and the personal consumption expenditures (PCE) price index—the Federal Reserve’s preferred inflation gauge. These reports will provide further insights into the health of the U.S. economy and could influence the Federal Reserve’s monetary policy decisions.

Market Outlook

Despite today’s pullback, some analysts remain optimistic about certain sectors. Phil Blancato, CEO of Ladenburg Thalmann Asset Management, noted that big tech companies might continue to beat earnings expectations as they are more resistant to tariffs.

However, the S&P 500 has declined more than 4% since the presidential elections in November and fallen around 10% from its February record high as markets assess the potential impact of tariffs. With a majority of economists polled by Reuters indicating high risks of the global economy slipping into recession this year, investors remain cautious as they navigate this challenging market environment.

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.