Stock Market Today: Dow, S&P 500 Post Best Week Since 2023 Amid Tariff-Fueled Volatility
By Brett LoGiurato, Karen Friar, and Ines Ferré | Updated April 12, 2025
U.S. stock markets closed higher on Friday, capping a tumultuous week characterized by sharp swings driven largely by escalating tariff tensions between the United States and China. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all posted their most impressive weekly gains in over two years, historically navigating through the whiplash induced by President Trump’s rapid-fire tariff announcements.
A Wild Week on Wall Street
Friday’s gains came after a week of intense market volatility triggered by the latest developments in the ongoing trade war. The S&P 500 rose 1.8%, recovering after earlier fluctuations during the session. The tech-heavy Nasdaq Composite climbed 2.1%, while the Dow Jones Industrial Average advanced 1.5%, adding roughly 600 points.
Despite wild intraday swings—highlighted by historic gains on Wednesday following the announcement of tariff pauses with some countries and increased levies on China, then steep declines on Thursday—the major indexes finished the week strong. The S&P 500 and Dow notched their best weekly performances since 2023, while the Nasdaq achieved its largest weekly gain since 2022, surging nearly 7%.
Tech, Industrials, and Financial sectors emerged as the top performers, with AI chipmaker Nvidia leading the much-watched "Magnificent Seven" group higher throughout the week.
Tariff Developments Drive Market Sentiment
President Trump’s administration stunned investors on Wednesday by announcing a 90-day pause on tariffs for about 75 countries but simultaneously increasing tariffs on Chinese imports to 145%, intensifying tensions between the world’s two largest economies. This policy shift created sharp moves in stocks as investors reassessed trade-related risks.
In direct response, China announced on Friday it would raise duties on U.S. goods to 125%, up from a previously planned 84%, starting Saturday. The Chinese commerce ministry also indicated it would disregard any further retaliatory tariff hikes from the U.S., signaling a prolonged period of tariff-fueled uncertainty.
Impact on the Broader Markets and Economy
The heightened trade tensions and policy unpredictability have begun to weigh on consumer sentiment, which dropped to its lowest level since 2022 in April. Consumers expressed increased concerns about inflation, anticipating more price pressures in the coming year as tariff costs pass onto everyday goods.
Safe-haven assets saw notable activity amid the "shaken" investor confidence. Gold surged past an all-time record, climbing above $3,200 per ounce on Friday and marking its best five-day performance since 2020. Meanwhile, bond markets experienced a sell-off, pushing the yield on the benchmark 10-year Treasury note to its highest level since February at around 4.5%. The U.S. dollar index fell below the critical 100 threshold during the week, reflecting currency market jitters.
Earnings Season Commences Amid Turbulence
Adding to the week’s financial drama, first-quarter earnings season kicked into gear with major Wall Street banks releasing results. JPMorgan Chase, Wells Fargo, and BlackRock reported earnings on Friday. JPMorgan CEO Jamie Dimon characterized the current period as "extreme turbulence" for the U.S. economy, underscoring the uncertain outlook as companies and investors face the compounding effects of trade tensions and inflationary pressures.
Looking Ahead
As markets digest tariff developments and their ripple effects on growth and inflation, volatility is expected to persist in the near term. Investors will closely monitor incoming economic data, corporate earnings, and geopolitical signals to navigate the uncertain landscape.
For now, the remarkable weekly gains across the Dow, S&P 500, and Nasdaq highlight resilience amid chaos—but also serve as a reminder of the markets’ sensitivity to policy shifts in an increasingly complex global economic environment.
Stay tuned for ongoing coverage and analysis on Smart Money Mindset as the story unfolds.