[New York Stock Market Weekly Outlook] Wall Street Tense Over Trump's Tariff Remarks… Attention on Continued Pressure to Dismiss Powell

Worst Over with Tariff Delay, but Wall Street Remains Uneasy

Focus on Additional Remarks by President Trump

Keep an Eye on Tesla and Alphabet's Earnings Announcements

This week (21st-25th), the New York stock market is likely to be heavily influenced by the remarks of U.S. President Donald Trump. Although there is speculation that the worst has passed with the mutual tariff delay, the situation is not reassuring. Already in April, at least 10 financial firms, including JP Morgan Chase, Bank of America, and Evercore ISI, have lowered their year-end S&P 500 index forecasts.

President Trump's pressure to dismiss Jerome Powell, the chairman of the U.S. Federal Reserve (Fed), could also impact the market. The White House officially announced on the 18th that President Trump will continue to consider the possibility of dismissing Chairman Powell.

Wall Street is also closely watching the earnings results of Tesla and Alphabet, Google's parent company. Tesla is set to announce its earnings on the 22nd. Tesla's vehicle deliveries in the first quarter of this year were 336,681 units, a sharp 13% decline compared to a year ago. This is the lowest level since the second quarter of 2022 (254,695 units). Amidst this, there are reports that the mass production of Tesla's Model Y, known internally as E41, has been delayed from the first half to the second half of this year.

Alphabet, which will announce its earnings on the 24th, is also facing challenges. The U.S. Federal Trade Commission (FTC) and the European Union (EU) competition authorities are continuing their antitrust investigations against Alphabet in the search and online advertising markets.

In terms of economic indicators, the preliminary April U.S. services and manufacturing Purchasing Managers' Index (PMI) from S&P Global, due on the 22nd, is important. It is an indicator that can gauge the conditions of the U.S. services and manufacturing sectors.

On the 23rd, the Fed's Beige Book will be published. The Beige Book is a report that Chairman Powell takes seriously and provides insight into the level of economic activity in the U.S. On the last trading day, the 25th, the final April Michigan Consumer Sentiment Index will be released.

New York = Park Shin-young, Correspondent nyusos@hankyung.com