US Stock Futures React to Potential New Tariffs

U.S. stock index futures pointed to a lower opening on Tuesday, April 15, 2025, as investors grew concerned over potential new tariffs on the pharmaceutical and semiconductor sectors. This development tempered earlier optimism regarding possible tariff relief for the auto industry. According to Federal Register filings, the Trump administration is proceeding with probes into imports of pharmaceuticals and semiconductors, signaling a possible move towards imposing tariffs.

Johnson & Johnson Shares Decline

Shares of Johnson & Johnson experienced a decline, mirroring a broader downturn among pharmaceutical companies like Pfizer and Eli Lilly. On April 1, 2025, Johnson & Johnson's stock dropped 7% after a judge rejected the company's third attempt to resolve talc-related liabilities through Chapter 11 bankruptcy. The judge determined that J&J had employed a flawed process when seeking votes from personal injury claimants. The company will now address the pending talc-related lawsuits through the civil court system.

Bank of America and Citigroup Announce Profit Growth

In positive earnings news, Bank of America and Citigroup both reported higher profits. Bank of America posted an 11% year-on-year increase in net profit to $7.4 billion. Citigroup reported a 21% rise in net profit, reaching $4.1 billion. However, despite these positive earnings reports, technical analysis of the S&P 500 suggests a potential long-term downtrend, contributing to global investors reducing their exposure to U.S. equities amid tariff uncertainties.

Global Investors Reduce US Equity Exposure

Global investors have been reducing their U.S. equity holdings, with a recent BofA Global Research report indicating a record decrease over the past two months. This shift reflects concerns about the potential impact of trade policies on economic growth. A survey revealed that a significant percentage of investors anticipate a global recession, further fueling the move away from U.S. assets.