From Nasdaq: 2025-04-04 20:48:00

Banks like JPMorgan, Wells Fargo, Bank of America, and Morgan Stanley are facing challenges due to market turmoil caused by tariffs. The ongoing uncertainty is impacting their performance, with concerns over economic trends and credit quality. Despite some positive loan demand data, investors remain cautious about sustained growth in the current environment.

Expectations for Q1 earnings for JPMorgan, Wells Fargo, and Morgan Stanley vary, with JPMorgan expected to report a slight decline in earnings, Wells Fargo to report stable earnings, and Morgan Stanley to report an increase in earnings. The Zacks Major Banks industry is anticipated to see a slight increase in earnings and revenues for the quarter.

Early Q1 earnings results from S&P 500 companies show a modest growth in earnings and revenues, with some companies struggling to beat estimates. Expectations for Q1 earnings growth have been revised downward, with concerns over weakening data and soft guidance affecting estimates. Various sectors, including Tech, are experiencing negative revisions to estimates.

The Tech sector, a key growth driver, is facing challenges from tariff uncertainties and market sentiment shifts. Despite these headwinds, the sector is expected to show growth in Q1 and beyond. Concerns about the macroeconomic backdrop and tariff policies are impacting business and consumer confidence, leading to lowered earnings expectations and market weakness.

The overall earnings picture shows a positive growth momentum through 2027, but recent data trends and market sentiment are impacting short-term estimates. The evolving earnings landscape, especially in sectors like Tech, will be crucial for future growth. Investors are advised to monitor upcoming earnings reports for further insights and guidance.



Read more at Nasdaq:: A Closer Look at Bank Stocks & Tariff Worries