Financial Update: Week of April 7, 2025
Last week brought a continuation in tariff activity well beyond expectations and some solid labor market data on Friday, making this a timely moment to offer an overview of key developments. Read on for a bite-sized summary of what you should know.
Weekly Stock Index Performance
Tariffs and retaliatory tariffs sent major U.S. stock indexes reeling last week. For the week ending 04/04/25:
- The S&P 500 declined by 9.08%.
- The Nasdaq 100 traded lower by 9.77%.
- The Dow Jones Industrial Average shed 7.86%.
Heightened Tariffs & Stocks
- More imposed and imminent retaliatory tariffs sent major U.S. stock market averages sharply lower last week, experiencing their worst week since 2020.
- At the close of trading last week, the Dow landed in correction territory, and the Nasdaq composite landed in bear market territory (a 20% or greater decline from a recent high).
Bond Yields, Oil Decline
- Yields on 10-year and 2-year notes closed last week at their lowest levels since October 2024 — good news for some bond investors. 10-year notes settled near 4.01%, and 2-notes settled near 3.68% for the week.
- With equities and bond yields falling, crude oil also sold off last week, hitting four-year lows. China’s retaliatory tariffs and demand concerns were catalysts.
Payrolls Data: Glimmer of Light
- Amidst last week’s high stock market volatility, payroll data was strong, with 228,000 jobs created in March, beating expectations for 140,000. The unemployment rate edged up to 4.2%.
- Healthcare led the way sector-wise, while average hourly earnings increased by 0.3% in March. Strong labor market data usually captures market attention; however, last Friday’s data release was overshadowed by tariff effects.
Weekend Developments
- The S&P 500 closed last week more than 17% lower than its recent high.
- Is it a bear market? The Stock Traders Almanac had some perspective over the weekend.
- What would happen to markets if and when tariffs are renegotiated? Over the weekend, dozens of countries contacted the White House seeking to renegotiate tariffs. It seems like the president is holding quite a few cards right now.
The Week Ahead
- It has been a lightning-fast turn for the U.S. financial markets due to tariffs, with last week’s announced tariffs scheduled to go into effect on Wednesday.
- While it seems like economic data will pale in comparison to tariff activity right now, it is a week full of data.
- We will get Consumer Price Index (CPI) data for March on Thursday. Some analysts expect no change in consumer inflation, while other estimates are for a decline in month-over-month consumer inflation.
- This week will also bring meeting minutes from the March Fed meeting on Wednesday, Producer Price Index (PPI) data, University of Michigan Consumer Sentiment & University of Michigan Inflation expectations on Friday.
That’s it for this week’s update! If you’d like to delve into these topics further or have any other questions or needs as the week unfolds during this volatile time in the markets, I am always here as a resource for you.
Disclosure:
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