Closing Bell: Markets Slide Sharply on Renewed Tariff Fears and Surging Japanese Yields

Key Points

• Stocks sold off sharply after President Trump announced tariffs on eight NATO nations opposing U.S. acquisition of Greenland.
• D.R. Horton topped revenue, and EPS estimates as incentives supported demand.
• Netflix fell more than 5% after hours despite a slight earnings beat, as Q1 revenue and operating margin both came in below expectations.

Markets were sharply lower after President Trump announced tariffs on eight NATO nations that oppose the United States acquiring Greenland. The S&P 500 closed down 2.06%, the Nasdaq-100 (NDX) tumbled 2.12%, and the Russell 2000 outperformed on a relative basis but still finished lower, down 2.12% on the session. Consumer Staples was the only sector to finish in positive territory, while Information Technology, Consumer Discretionary, and Financials were the biggest laggards on the day.

D.R. Horton Earnings Mixed

D.R. Horton (DHI) exceeded consensus estimates for both revenue and adjusted earnings per share, as its incentive strategy continues to “stabilize” order volume—though at the expense of margins. The company reported revenue of $6.89 billion, above the consensus estimate of $6.60 billion. Management noted that sales gross margins are expected to be lower in the second quarter compared with the first, in part due to continued homebuyer incentive programs.

Netflix Continues Downtrend After Earnings Disappoint

Netflix (NFLX) moved more than 5% lower in after-hours trading after reporting earnings that slightly exceeded consensus expectations but issuing guidance that fell short across most metrics. The company posted Q4 EPS of $0.56 versus estimates of $0.55 and Q4 revenue of $12.05 billion compared with expectations of $11.97 billion. Netflix also issued Q1 revenue guidance of $12.16 billion, below consensus estimates of $12.19 billion, along with operating margin guidance of 32.1%.

Market Events for Tomorrow

• 08:30 AM ET: President Trump Speaks
• 10:00 AM ET: Pending Home Sales
• 10:00 AM ET: Construction Spending
• 04:30 PM ET: API Weekly Statistical Bulletin

Notable Earnings for Tomorrow

• A.M: ALLY, SCHW, CFG, HAL, JNJ, PLD, TRV, TFC, TDY
• P.M: KMI, KNX

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any decisions.

Schwab Network is brought to you by Charles Schwab Media Productions Company (“CSMPC”). CSMPC is a subsidiary of The Charles Schwab Corporation and is not a financial advisor, registered investment advisor, broker-dealer, or futures commission merchant.

Charles Schwab Media Productions Company and all third parties mentioned are separate and unaffiliated, and are not responsible for one another's policies, services or opinions.

Data contained herein is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. All events and times listed are subject to change without notice.