From Nasdaq: 2025-04-10 08:43:00

Delta Air Lines and Walmart have both cut their profit forecasts due to tariff uncertainty impacting demand. The S&P 500 is already in a negative revision cycle, with estimates falling drastically. The risk is that earnings outlooks could turn negative, leading to a protracted market downtrend.

Despite the profit cuts and increased uncertainty, Delta and Walmart expect solid Q2 performance. The S&P 500 could see outperformance in Q2 due to front-running the impact of tariffs, but a significant decline may follow once tariffs take full effect.

The energy sector is expected to face massive earnings decline in 2025, with the price of WTI dropping due to fears of global economic stagnation and ample supply. Oil prices are down early in CQ2, impacting guidance and results immediately.

Volatility is the only certainty in the market, as evidenced by the recent S&P 500 price swing. Trump’s tariff decisions have increased uncertainty, leading to market ups and downs. Guidance reductions are expected to keep index price action under pressure throughout the year.



Read more at Nasdaq:: Delta, Walmart Cut Profit Targets: Could Start Domino Effect