Weekly Market Update: April 21–27, 2025

Stocks Rally Worldwide

Markets had a strong week.

• S&P 500 rose 4.6%, Nasdaq surged 6.7%, and the Dow gained 2.5% as investors cheered strong earnings and hopes of easing trade tensions.

• Global stocks also moved higher: Europe’s DAX jumped nearly 5%, and Asia’s Nikkei and Hang Seng climbed over 2.5% each.

• Gains were led by tech and consumer companies.

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Bonds: Yields Ease

• U.S. Treasury yields dipped slightly, with the 10-year yield falling to 4.29%.

• Falling yields boosted bond prices, and both government and corporate bonds saw moderate gains.

• This suggests investors are still cautious about the economic outlook, even as stocks rally.

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Commodities: Gold Up, Oil Steady

• Gold hit new highs, driven by investor demand for safety.

• Oil (WTI) stayed in the low $60s, held back by weak demand and strong supply.

• Corn and soybeans were mostly flat, with traders watching weather and export trends.

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Currencies: Dollar Slips

• The U.S. dollar fell slightly.

• The euro and British pound gained on stronger-than-expected data.

• The yen softened as risk appetite grew, while China’s yuan stayed mostly stable.

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Economic Data: Mixed Signals

• U.S. business activity slowed, especially in services, while manufacturing held steady.

• Durable goods orders rose sharply—mostly due to aircraft sales ahead of new tariffs.

• Home sales dropped nearly 6% in March, showing continued pressure from high mortgage rates.

• In Europe, growth remained sluggish, and tariffs were blamed for weaker export demand.

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Tariffs Still in Focus

• No new tariffs were announced, but existing U.S.–China tariffs remain high.

• The U.S. hinted at restarting talks with China, which boosted market confidence.

• China and Japan both announced economic support plans to manage the trade war impact.

• The IMF lowered global growth forecasts, citing ongoing tariff uncertainty.

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Takeaway for Investors

Markets rebounded this week as optimism returned—but the trade war continues to cast a long shadow. Economic data is mixed, and while inflation pressures have cooled, business activity and consumer confidence are still facing challenges. Investors are watching closely for the next move on tariffs and upcoming reports like GDP and inflation.