Last Week’s Summary
- S&P 500 Index fell 1.52%
- International Equities fell 0.95%
- Emerging Markets fell 0.79%
- U.S. 10-Year Treasury Yield rose to 4.25%
- FOMC kept rates at 4.25-4.5%
- Initial Jobless Claims rose to 224k
- S&P Global US Manufacturing PMI fell to 49.8
- U. of Mich. Sentiment fell to 57
- U. of Mich. 1-Yr Inflation rose to 5%
What to Watch for This Week
- M, 3/31/25 MNI Chicago PMI
- T, 4/1/25 S&P Global US Manufacturing PMI, JOLTS Job Openings, ISM Manufacturing
- W, 4/2/25 MBA Mortgage Applications, ADP Employment Change, Durable Goods Orders
- Th, 4/3/25 Initial Jobless Claims, Trade Balance, ISM Services Index
- F, 4/4/25 Change in Nonfarm Payrolls Unemployment Rate
Weekly Market Recap
Stocks tumbled, bonds rallied, and gold surged to a record high as fresh signs of economic weakness and renewed inflation fears rattled markets.
With just one session left in a quarter poised to be the S&P 500’s worst since 2022, the benchmark Index is down 5.8% over the quarter so far. Tech Mega-Caps were hit hard, with a key Index sliding 3.5%. Meanwhile, the yield on 10-Year Treasuries fell 10 basis points to 4.25% as investors sought safety.
A sharp decline in U.S. consumer sentiment and a jump in long-term inflation expectations weighed heavily on sentiment. That followed earlier data showing sluggish consumer spending and rising prices – all ahead of next week’s major U.S. tariff expansion.
President Donald Trump’s expanding tariff policy is fueling consumer anxiety, with many worried that higher import costs will continue to push up prices. If inflation remains elevated, households may start cutting back on discretionary purchases – a trend that could ripple through the broader economy and squeeze Corporate America.
In response, economists have lowered their U.S. growth forecasts, citing weaker consumer activity and reduced capital investment amid escalating trade uncertainty. All eyes now turn to the upcoming jobs report for clues on whether the economy is indeed starting to cool.
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.
