Last Week’s Summary
- S&P 500 Index rose 5.73%
- International Equities rose 0.75%
- Emerging Markets fell 0.45%
- U.S. 10-Year Treasury Yield rose to 4.49%
- CPI fell to 2.4% and Core fell to 2.8%
- Initial Jobless Claims rose to 223K
- PPI fell to 2.7% and Core fell to 3.3%
- U. of Mich. Sentiment fell to 50.8
- U. of Mich. 1-Yr inflation rose to 6.7%
What to Watch for This Week
- M, 4/14/25 NY Fed 1-Yr Inflation
- T, 4/15/25 Empire Manufacturing
- W, 4/16/25 MBA Mortgage Applications, Retail Sales Advance, Industrial Production
- Th, 4/17/25 Initial Jobless Claims, Housing Starts
Weekly Market Recap
Market volatility shows few signs of easing, as escalating concerns over President Donald Trump’s rapidly shifting trade policies continue to rattle the global economy and threaten the United States’ reputation as a safe-haven for investors.
Wall Street’s erratic swings continued to unsettle markets, though stocks managed a strong rebound, posting their best weekly performance since 2023. The rally was sparked by a retreat in bond and dollar selloffs, after several chaotic sessions raised alarms that foreign investors may be pulling back from U.S. assets.
The S&P 500 surged 1.8% on reports that a Federal Reserve official signaled the central bank is prepared to intervene if necessary to stabilize markets. The current landscape bears an unsettling resemblance to the early days of the pandemic, with a stark lack of clarity around the outlook for economies, markets, and businesses.
Tensions escalated further as China announced retaliatory trade measures, and President Trump abruptly paused certain tariffs mere hours after they were implemented. The first quarter earnings season began with mixed signals from major banks.
JPMorgan reported record-breaking revenue from its stock trading division, though CEO Jamie Dimon struck a cautious note regarding the broader economic outlook. In contrast, Wells Fargo fell short of expectations on net interest income, citing tepid loan demand that weighed heavily on its core business.
Meanwhile, Morgan Stanley outperformed forecasts, posting stronger-than expected revenue from its equities division. Looking beyond the banks, investors are eagerly anticipating updates from executives at companies that serve broad segments of American consumers and businesses, hoping for deeper insights into the trajectory of the U.S. economy.
60-Second Breakdown:
Redwood Senior Analyst Michael C. Sasaki, CFA® discusses recent market performance and explains this week’s chart.
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Bryan Bourgeois, CEO/Founder of Shorebreak Capital, discusses why 90% of investors fail and how to avoid these common investment mistakes with Conner Small, Partner at Redwood Investment Management, Shorebreak Capital’s dedicated asset manager.
