Weekly Market Update: April 7–13, 2025

Stock Markets Bounce Back

U.S. stocks rebounded sharply this week after a rocky start. The S&P 500 rose about 5.7%, the Dow gained 5%, and the Nasdaq jumped 7.3%—marking their best week in months. Early losses were caused by concerns over rising tariffs and a potential trade war with China. However, a midweek announcement from the White House temporarily easing some tariffs helped calm markets and spark a late-week rally.

International markets were mixed. European stocks struggled with uncertainty, while Asian markets—especially in China and Japan—were weighed down by the tariff battle. The global MSCI World Index ended slightly higher.

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Bonds: Yields Surge

Bond markets saw big swings. The 10-year U.S. Treasury yield climbed sharply—the biggest one-week increase in decades—as investors pulled money from bonds despite economic uncertainty. Rising inflation concerns and fears that foreign countries may cut back on U.S. debt purchases contributed to the jump.

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Commodities: Gold Shines, Oil Slips

• Gold surged to an all-time high above $3,200/oz, as investors looked for safer places to park their money.

• Oil prices swung throughout the week. WTI crude dipped early, rebounded midweek, then settled slightly lower by Friday.

• Agricultural commodities like soybeans saw short-lived gains but remain under pressure as new Chinese tariffs raise concerns for U.S. farmers.

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Currencies: Dollar Drops

The U.S. dollar fell sharply, hitting a 3-year low, even as interest rates rose. The euro, yen, pound, and Swiss franc all gained ground. The Chinese yuan weakened early but recovered slightly after intervention from China’s central bank.

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Economic Data: Inflation Slows, Confidence Drops

New data showed inflation easing:

• Consumer prices fell slightly in March, bringing the annual inflation rate to 2.4%.

• Producer prices also declined more than expected.

However, consumer confidence fell sharply, with many Americans expecting prices to rise in the future—likely due to headlines around new tariffs. Job numbers remained steady, with no major changes in unemployment or hiring.

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Tariffs and Trade Tensions Dominate Headlines

The U.S. raised tariffs on Chinese goods to 145%, prompting China to hit back with a 125% tariff on U.S. imports. While the U.S. offered a temporary tariff pause for some allies and hinted at possible negotiations, the back-and-forth kept markets on edge all week.