US Stock Market Close: Three Major Indices Mixed in Change, Investors Focus on Tech Stocks' Earnings Reports

On Monday, Eastern Time, the three major indices closed with mixed changes. Trump's tariffs will continue to pressure the market, and earnings reports from major tech companies and economic data will be the focus in the coming days.

The S&P 500 index fell more than 1% during the session but rebounded in the final hour, marking its fifth consecutive day of gains, the longest winning streak since early November last year.

About one-third of the S&P 500 companies are set to report Q1 earnings this week, with reports from major tech firms like Apple, Meta, Amazon, and Microsoft drawing significant attention. Investors are closely watching how Trump's tariffs will impact companies' future profits.

Although S&P 500 companies are expected to report a 10.9% increase in Q1 profits compared to the same period last year, many have warned about uncertainties stemming from US trade policies, with some even cutting or withdrawing their forecasts entirely.

Among the 179 S&P 500 companies that have already reported earnings, 78 have issued negative profit outlooks, while 32 have provided positive forecasts.

Jack Ablin, Chief Investment Officer at Cresset Capital, said, "With four of the Magnificent Seven reporting earnings this week, it's a crucial earnings week. Everyone is eager to hear guidance on the future and how CEOs plan to navigate a potential trade war, which will be very interesting."

This week will also see the release of US Q1 GDP data and the April non-farm payrolls report on Friday. Overall, by the end of the week, Wall Street should have a clearer understanding of the impact of tariffs on businesses and consumers.

Anthony Saglimbene, an analyst at Ameriprise, said, "This will be one of the busiest weeks of the year, with a constant stream of trade-related news, a barrage of important data releases, and the peak of earnings season, which is expected to keep investors on their toes."

As the turbulent April draws to a close, several market experts believe there are few reasons to believe market volatility has passed. Chris Larkin, an analyst at E*Trade, pointed out that for stocks to continue rising, investors need to see the White House take genuine "dovish turns" on trade issues with China.

Market Dynamics

At the close, the Dow Jones rose 114.09 points, or 0.28%, to 40,227.59; the Nasdaq fell 16.81 points, or 0.10%, to 17,366.13; and the S&P 500 rose 3.54 points, or 0.06%, to 5,528.75.

Most US sector ETFs rose, with the Biotechnology Index ETF gaining 1.14%, the Global Airlines ETF up 0.97%, the Energy ETF rising 0.7%, the Regional Banks ETF up 0.59%, the Banking ETF gaining 0.54%, the Financials ETF up 0.31%, the Technology Sector ETF falling 0.16%, and the Semiconductor ETF dropping 0.62%.

Among the 11 sectors of the S&P 500, the Financials sector rose 0.32%, Healthcare gained 0.37%, Real Estate increased 0.69%, Industrials rose 0.31%, and Energy gained 0.63%.

Performance of Popular Stocks

Major tech stocks had mixed performances, with Tesla rising 0.33%, Meta up 0.45%, Apple gaining 0.41%, Amazon falling 0.68%, Microsoft dropping 0.18%, and Alphabet Class A shares declining 0.83%.

Nvidia fell more than 2% following reports that Huawei is finalizing tests for its newly developed AI chip, Ascend 910D, aiming to replace Nvidia's H100 chip.

Most popular Chinese ADRs rose, with the Nasdaq Golden Dragon China Index gaining 0.68%. NIO surged over 6%, DouYu, Li Auto, BOSS Zhipin, and Vipshop rose over 3%, Youdao, Kingsoft Cloud, and Manbang gained over 2%, JD.com, Tencent Music, and New Oriental Education rose slightly, while iQIYI, KE Holdings, and DD Inc. fell over 1%, and Bilibili, NetEase, and Baidu declined slightly.

Company News

[IBM Announces $150 Billion Investment Plan]

On Monday, local time, US tech giant IBM announced a $150 billion investment plan in the US over the next five years. This includes $30 billion in R&D spending to advance IBM's AI mainframe and quantum computing manufacturing operations in the US. IBM CEO Arvind Krishna reiterated the company's intentions in the announcement: "Since our founding 114 years ago, IBM has been committed to US employment and manufacturing. Through this investment and manufacturing commitment, IBM will ensure it remains at the core of the world's most advanced computing and AI capabilities."

[Sony Group Reportedly Considering Spin-off of Semiconductor Business, Potentially Completed This Year]

According to sources familiar with the matter, Sony Group is considering spinning off its semiconductor division, marking the latest move by the PlayStation maker to streamline its business and focus on entertainment. The sources, who requested anonymity due to the confidential nature of the discussions, said the spin-off and listing of Sony Semiconductor Solutions Group could occur as early as this year. One source said Sony is considering distributing a majority stake in its semiconductor business to shareholders and may retain a minority stake after the spin-off.

[NXP Semiconductors Reports Q1 Revenue of $2.84 Billion, Exceeding Market Expectations]

NXP Semiconductors reported Q1 2025 revenue of $2.84 billion, exceeding market expectations of $2.83 billion, compared to $3.13 billion in the same period last year. Adjusted EPS for the quarter was $2.64, beating analysts' expectations of $2.60, while EPS was $1.92, down from $2.47 a year earlier. The company expects Q2 revenue of $2.8 billion to $3.0 billion, compared to analysts' expectations of $3.86 billion. It forecasts adjusted Q2 EPS of $2.46 to $2.86, versus analysts' expectations of $2.63, and Q2 EPS of $1.78 to $2.16, compared to analysts' expectations of $2.05. The company's CEO will step down by the end of 2025.

[Porsche Forecasts Full-Year Revenue of €37-38 Billion, Lower Than Previous Estimates]

Porsche expects full-year revenue of €37-38 billion, down from its previous forecast of €39-40 billion. It anticipates a full-year automotive EBITDA margin of 16.5%-18.5%, compared to its earlier estimate of 19%-21%, and an operating margin for its robotic operating system (ROS) of 6.5%-8.5%, down from the previous forecast of 10%-12%.