Late Rally Caps Volatile Trading Week:
Stocks finished on a high note last week, notching strong gains following another volatile week of trading. Investors seemed to otherwise downplay encouraging inflation news, keeping their attention firmly on the latest tariff developments.
The S&P’s 500 Index rose 5.70%, while the Nasdaq Composite Index gained 7.29%. The Dow Jones Industrial Average picked up 4.95%. The MSCI EAFE Index, which tracks developed overseas stock markets, increased by 0.72%.1,2
Stocks Rebound
Stocks rallied on Monday after a report surfaced that the administration was considering a 90-day pause on tariffs. But when the White House clarified its position, sellers stepped in.
On Tuesday, prices jumped at the next opening bell after the Treasury Secretary said the U.S. was open to tariff negotiations with trading partners. The rally stalled and reversed on news the administration was adjusting tariffs on Chinese imports.3
After the White House announced a 90-day pause on specific tariffs on Wednesday, markets pushed higher. The S&P 500 gained 9.5%, its largest one-day increase in 17 years.4
Stocks fell again Thursday morning, appearing to overlook an upbeat Consumer Price Index report showing that core inflation (excluding food and energy) rose at a 2.8% annual rate–the best number in more than four years. Stocks finished the week with a powerful rally, capping a volatile trading week.5,6
Sources: U.S. Department of the Treasury, Board of Governors of the Federal Reserve System, Charles Schwab
Watching the Bond Market
The yield on the 10-year Treasury rose more than 50 basis points for the week, marking one of the most significant moves on record. (When bond yields increase, bond prices tend to move lower.)
The week’s action was unexpected. In the past, investors have turned to U.S. bonds during market turbulence. However, the ongoing tariff talks have, at least temporarily, influenced how some overseas investors view U.S. bonds.7,8
The bond market activity influenced the mortgage market, where the average rate on the popular 30-year fixed mortgage closed Friday at 7.1%, its highest level in two months.9
This Week: Key Economic Data
Source: Bloomberg Finance L.P.
This Week: Companies Reporting Earnings
Source: EarningsWhispers
Author
Gary Aiken
Chief Investment Officer
Concord Asset Management
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Footnotes and Sources
1The Wall Street Journal, April 11, 2025
2Investing.com, April 11, 2025
3CNBC.com, April 8, 2025
4The Wall Street Journal, April 9, 2025
5The Wall Street Journal, April 10, 2025
6MarketWatch.com, April 11, 2025
7WSJ.com, April 9, 2025
8MarketWatch.com, April 9, 2025
9CNBC.com, April 11, 2025
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