Tariff and Inflation News Shape a Volatile Week for Stocks:
Stocks declined last week as investor sentiment fluctuated between optimism and disappointment. These shifts were largely driven by ongoing tariff developments and new inflation data, which raised concerns about potential trade disruptions and fueled uncertainty about future interest rate hikes.
The S&P 500 Index fell 1.53%, while the Nasdaq Composite Index retreated 2.59%. The Dow Jones Industrial Average slid 0.96%. The MSCI EAFE Index, which tracks developed overseas stock markets, declined 1.29%.1,2
Source: Bloomberg Finance, L.P. (Performance data normalized 3/24/25 = 0)
An Up and Down Week
Stocks started the week with a sharp rally after the White House said it may “give a lot of countries breaks” on reciprocal tariffs. The positive momentum continued into Tuesday, with the Nasdaq and S&P 500 outpacing the Dow.3
Then, midweek, news that the White House was planning additional tariffs on all cars made outside the U.S. rattled markets.4,5
On Friday, investors reacted to a warmer-than-expected inflation report and lower consumer sentiment, putting further pressure on stocks as the week closed.6
Sources: U.S. Department of the Treasury, Board of Governors of the Federal Reserve System, Charles Schwab
Noise vs. Signal
There can be a lot of noise in the market from time to time. This can make it hard for investors to interpret information as they search for the actual signal.
Last week, investors were trying to interpret the White House decision to impose tariffs on all cars and some car parts made outside of the U.S. While some automakers are domestic and others are foreign-based, the question is whether companies will absorb the additional costs, pass them on to consumers, or look to build factories in the United States.7
Separating the noise from the signal may take time, which can be more challenging when the markets react to new tariff updates as they are announced.
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, March 28, 2025
2Investing.com, March 28, 2025
3CNBC.com, March 25, 2025
4CNBC.com, March 26, 2025
5CNBC.com, March 27, 2025
6The Wall Street Journal, March 28, 2025
7MarketWatch.com, March 27, 2025
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