The company reported earnings of $0.27 per share, below the expected $0.44, on revenue of $19.34 billion.Ignacio Teson•Tuesday, April 22, 2025•2 min
Quick overview
- All three major U.S. stock indexes rose by over 2%, with the Dow Jones gaining 2.66% after strong quarterly earnings reports.
- 3M’s stock surged 8.12% after beating first-quarter earnings expectations and reaffirming its full-year guidance.
- Easing trade tensions between the U.S. and China contributed to the market rally, despite concerns over President Trump’s criticism of the Federal Reserve.
- So far, 73% of S&P 500 companies reporting earnings have exceeded expectations, with analysts now forecasting an 8.1% growth in quarterly earnings.
A broad rally lifted all three major U.S. stock indexes by more than 2%, with 3M (+8.12%) standing out in the Dow Jones after beating first-quarter earnings expectations.
Wall Street’s main indexes rebounded sharply on Tuesday. Following a session of losses, stocks climbed on the back of strong quarterly earnings reports and signs of easing trade tensions between the United States and China.
The Dow Jones Industrial Average, which tracks 30 blue-chip companies, jumped 2.66% to 39,186.98 points. The S&P 500, representing the most valuable U.S. firms, rose 2.51% to 5,287.76, while the tech-heavy Nasdaq Composite advanced 2.71% to 16,300.42.
SPX
The broad-based rally helped push all three indexes over the 2% mark, as investors brushed off criticism from President Donald Trump directed at Federal Reserve Chair Jerome Powell, who is widely seen as a stabilizing force for the markets.
Concerns Ease
Minneapolis Fed President Neel Kashkari emphasized the importance of central bank independence, saying it is essential for strong economic outcomes. A day earlier, Trump’s demand for a rate cut had sparked concerns over the Fed’s autonomy.
White House Press Secretary Karoline Leavitt said talks with the Chinese government are progressing, while Treasury Secretary Scott Bessent called the ongoing standoff with China unsustainable and expressed hope for de-escalation, according to Reuters.
Trump’s actions have rattled not only investors but also global institutions. Trade-related uncertainty led the International Monetary Fund to lower its forecast for U.S. economic growth to 1.8% in 2025. However, the latest developments helped ease market fears.
Earnings Season
Earnings season continues to drive momentum. 3M surged 8.12% after beating first-quarter profit expectations and reaffirming its full-year earnings guidance of $7.60 to $7.90 per share, despite anticipating some impact from tariffs.
Among the “Magnificent Seven” tech giants, Tesla rose 4.60% ahead of its earnings release. The company reported earnings of $0.27 per share, below the expected $0.44, on revenue of $19.34 billion—short of the $21.43 billion forecast. Despite the miss, shares rose on more optimistic forward guidance.
So far, 82 S&P 500 companies have reported results, with 73% exceeding expectations, according to LSEG. Analysts now forecast quarterly earnings growth for the S&P 500 at 8.1%, down from the 12.2% projected earlier this year.
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
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