Smart Investor: Stocks That Crushed Earnings, Nvidia Earnings, and the Latest Bond Selloff

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This week’s highlights:

• Weekly Market Update: Stocks Slide, Led by Energy and Real Estate
• 10 Undervalued Stocks That Crushed Q1 Earnings
• Trump’s Tax Bill Adds to Bond Market’s Woes
• More Than Tariffs: Behind the US Dollar’s Decline
• Investors Should Embrace Elevated Bond Yields
• What’s Next for High-Yield Bond Funds?
• Going Into Earnings, Is Nvidia Stock a Buy, a Sell, or Fairly Valued?

I consider it a truism that stock investors are optimists and bond investors are pessimists. There is of course that idea that bond prices go up during bad times for the economy, but look at the recent market dynamics around fiscal policy and trade policy. Judging by the stock market, April 2’s tariff announcement never happened and the economy is full speed ahead. But in the bond market, investors continue to demand a new yield premium on Treasuries amid so many policy flip-flops. Here the economic impact of tariffs is very much alive.

This past week, another worry for bond investors was front and center: the exploding federal budget deficit, which the Republican tax bill that passed the House threatens to make even worse. Sarah Hansen spoke with bond fund pros about what they see next for the fixed-income market.

From an investor’s standpoint, the selloff in the bond market isn’t all bad, as it delivers the silver lining of higher long-term Treasury yields. Morningstar senior manager research analyst Paul Olmsted highlights three funds (with ETF options) to capture more income.

We also look at high-yield bond funds, whose performance has mirrored the stock market. Check out how some of the biggest high-yield bond funds have been faring.

Beyond the bond and stock markets, the US dollar has seen significant moves this year. Notably, the value of the dollar has fallen amid uncertainty, suggesting global investors are not seeing US markets as a safe haven. We look at the dynamics driving the US dollar lower.

Meanwhile, the first-quarter earnings season is almost over, with market heavyweight Nvidia due to report this coming week. Bella Albrecht looks at the companies that have reported so far for undervalued names that beat both earning and revenue estimates. The list includes a semiconductor company and a pair of game and toy companies.

As always, be sure to visit our Markets page for our latest coverage and live stock market updates along with our full weekly calendar of key upcoming data and events.