Weekly Update – April 7, 2025
The Week on Wall Street
Stocks fell broadly last week as domestic and foreign markets reacted to the White House’s tariffs.
The Standard & Poor’s 500 Index declined 9.08 percent, while the Nasdaq Composite Index fell 10.02 percent. The Dow Jones Industrial Average dropped 7.86 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, lost 7.39 percent.1,2
Under Pressure
Stocks rallied the first half of the week as markets tried to anticipate the potential impact of tariffs previously announced by the White House.3
Soon after the closing bell on Wednesday, President Trump’s new tariffs surprised markets. Global markets reacted to the news overnight.4
Markets opened lower on Thursday, and the selling continued through Friday. Treasuries rallied in a flight to quality as investors moved to the sidelines. The yield on the 10-year Treasury note closed Friday at 4.0 percent. Bond yields generally fall when bond prices rise.5,6
Powell’s Speech
Federal Reserve Chair Jerome Powell gave a previously scheduled and much-anticipated speech on Friday. He explained:
- The labor market is in good shape and not a significant source of inflation.
- Longer-term inflation expectations are “well anchored and consistent with our 2 percent inflation goal” – despite higher expectations for inflation over the short term.
- Regarding consumer sentiment, while consumers “may not feel great about the economy now, they still keep spending.” He added that the same happened during the pandemic.
- The Fed’s policy stance is “well positioned to wait for greater clarity… (on the likely effects of trade and fiscal policy, for example) before considering any changes in monetary policy.”7
THIS WEEK: KEY ECONOMIC DATA
Monday: Consumer Credit.
Tuesday: NFIB Small Business Optimism Index. Treasury Buyback.
Wednesday: Federal Open Market Committee (FOMC) Minutes released. 10-Year Treasury Note Auction. Wholesale Inventories.
Thursday: Consumer Price Index (CPI). Jobless Claims. Monthly Federal Budget. Chicago Fed President Austan Goolsbee and Dallas Fed President Lorie Logan speak.
Friday: Producer Price Index (PPI). Consumer Sentiment. New York Fed President John Williams speaks.
THIS WEEK: COMPANIES REPORTING EARNINGS
Friday: JPMorgan Chase & Co. (JPM), Wells Fargo & Company (WFC), The Progressive Corporation (PGR), BlackRock (BLK), The Bank of New York Mellon Corporation (BK)
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1. The Wall Street Journal, April 4, 2025
2. Investing.com, April 4, 2025
3. MarketWatch.com, April 1, 2025
4. The Wall Street Journal, April 2, 2025
5. MarketWatch.com, April 3, 2025
6. The Wall Street Journal, April 4, 2025
7. MarketWatch.com, April 4, 2025