Wall Street Rebounds After Selloff as Focus Shifts to Earnings
Wall Street looked set to bounce back on Tuesday following a steep selloff, with investor sentiment buoyed by corporate earnings and a momentary reprieve from political headwinds. Futures pointed higher across the board, as market participants weighed the implications of the previous session’s slide—triggered by renewed criticism of the Federal Reserve—and awaited crucial earnings reports from key players in the U.S. economy.
Stocks Rebound After Monday’s Rout
Dow, S&P 500, and Nasdaq futures were up 0.88%, 0.86%, and 0.93% respectively in early premarket trading. The bounce comes after a sharp decline of over 2% across major indices on Monday, when President Trump escalated his attacks on Fed Chair Jerome Powell for holding interest rates steady, reigniting concerns over central bank independence and policy uncertainty.
Investor attention has now pivoted to corporate performance, with dozens of companies reporting earnings this week, offering a snapshot of how U.S. businesses are navigating the murky waters of tariffs and policy volatility.
Earnings in Focus: 3M Surges, Verizon Slips
Earnings reports played a key role in driving early market action:
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3M Co. (MMM) soared 6.9% in premarket after reporting better-than-expected Q1 profits, despite warning of potential full-year headwinds from tariffs.
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Verizon (VZ) dropped 5.8% following higher-than-expected subscriber losses.
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Northrop Grumman (NOC) fell 8.8% after a sharp decline in profits.
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First Solar (FSLR) gained 7.2% after the U.S. finalized tariffs on South Asian solar cell imports, bolstering domestic producers.
Tesla shares rose 1% ahead of its after-hours earnings release, with investors eager to hear updates on both Elon Musk’s policy influence and Tesla’s rollout of budget-friendly electric vehicles. Other megacap stocks clawed back some losses from Monday, with Nvidia (+1.3%), Amazon (+1.1%), and Apple (+0.8%) all trading higher premarket.
Market Technicals: Bear Market Risks Linger
Despite Tuesday’s relief rally, technical indicators suggest the broader market remains vulnerable. The S&P 500 closed Monday at 5,158.20, marking a 16% decline from its February 19 record high. A drop of 20% would officially confirm bear market territory—a threshold the Nasdaq Composite has already breached earlier this month.
Key support levels are in focus:
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5,132.90 (38.2% Fibonacci retracement)
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5,069.90 (April 4 low)
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4,915.32 (Bear market trigger)
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4,819.51–4,818.62 (Major retracement and 2022 high)
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4,685 and 4,580 (Long-term moving averages)
If the index fails to reclaim and hold its 89-week moving average (~5,275), deeper downside tests remain on the table.
Other Market Movers
Outside equities, gold and the dollar climbed as investors sought safety, while crude oil and Bitcoin both rose over 1%, suggesting a mixed but cautiously optimistic risk sentiment. Treasury yields eased slightly, with the U.S. 10-year yield drifting down to around 4.39%.
Market watchers are also awaiting commentary from multiple Federal Reserve officials, including Vice Chair Philip Jefferson, with any hints on the Fed’s stance in light of political pressures likely to stir market reaction.
Summary
After a turbulent start to the week, Wall Street is showing signs of stabilization, driven by corporate earnings and a partial easing of political tensions. However, fragility lingers beneath the surface as investors remain on edge over tariff impacts, central bank independence, and key technical thresholds. With earnings season in full swing and macro crosswinds still blowing, markets remain poised for volatility in the days ahead.
Stay tuned as the story unfolds.
