Last Week’s Summary
- S&P 500 Index fell 9.05%
- International Equities fell 6.91%
- Emerging Markets fell 5.43%
- U.S. 10-Year Treasury Yield rose to 3.99%
- ISM Manufacturing fell to 49
- JOLTS Job Openings fell to 7568k
- ADP Employment Change rose to 155k
- Initial Jobless Claims fell to 219k
- Change in Nonfarm Payrolls rose to 228k
- Unemployment Rate rose to 4.2%
What to Watch for This Week
- M, 4/7/25 Consumer Credit
- T, 4/8/25 NFIB Small Business Optimism
- W, 4/9/25 MBA Mortgage Applications, Wholesale Inventories, FOMC Meeting Minutes
- Th, 4/10/25 Initial Jobless Claims, CPI, CPI Core
- F, 4/11/25 PPI, PPI Core, U. of Mich. Sentiment, U. of Mich. 1-Yr. Inflation
Weekly Market Recap
The S&P 500 suffered its steepest two-day decline since March 2020, erasing more than $5 Trillion in market value as the index plunged 6% on Friday alone. Meanwhile, the Nasdaq 100 officially entered bear market territory. Treasury Yields slipped, with the 10-Year note falling three basis points to 3.99.
The turmoil followed Federal Reserve Chair Jerome Powell’s warning that the economic fallout from a global trade war could be more severe than previously expected-posing risks of both higher inflation and slower growth. Despite a resilient jobs report, it predates the latest wave of tariffs, which have yet to ripple fully through the economy.
In response to China’s retaliation against his sweeping tariff plan, President Trump doubled down on his policies, asserting they “will never change.” He later struck a more conciliatory tone after a “very productive call” with Vietnam, igniting a rally in companies with substantial manufacturing operations there, including Nike Inc. and Lululemon Athletica Inc.
Mega-Cap stocks took a heavy hit: Nvidia Corp. and Tesla Inc. both dropped more than 7%, while U.S.-listed Chinese companies such as Alibaba Group Holding Ltd. and Baidu Inc. also fell sharply. A gauge tracking major banks slid to its lowest point since August 7. The Cboe Volatility Index (VIX) surged to its highest level since April 2020, signaling heightened investor anxiety.
While the rapid selloff-the fastest since the depths of the Covid-19 pandemic-has left stock valuations seemingly attractive, looming recession fears driven by escalating trade tensions are forcing investors to reconsider what truly qualifies as a bargain.
60-Second Breakdown:
Redwood Senior Analyst Michael C. Sasaki, CFA® discusses recent market performance and explains this week’s chart.
The Most Secure Way to Invest In 2025!
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.
