Stock Market Recap: Dow and S&P 500 Post Best Week Since 2023 Amid Tariff Turbulence
April 11, 2025
By Brett LoGiurato, Karen Friar, Ines Ferré
In a week characterized by significant volatility, U.S. stocks closed higher on Friday, capping off their best week since 2023. This surge follows a tumultuous series of events fueled by ongoing tariff adjustments in the trade war between the United States and China.
Strong End to Chaotic Week
The S&P 500 advanced 1.8% on Friday, while the technology-heavy Nasdaq Composite rose by 2.1%. The Dow Jones Industrial Average gained 1.5%, adding approximately 600 points to finish the week on a high note. Investors had been grappling with fluctuating market conditions earlier in the week—culminating in historic gains on Wednesday, followed by sharp losses on Thursday due to evolving tariff policies.
For the week, the S&P 500 and Dow experienced their most significant gains since the beginning of last year, while the Nasdaq saw a remarkable 7% increase, marking its best week since 2022. Analysts noted a clear reaction to President Trump’s shifting tariff policies, which have notably affected market sentiment and investor confidence.
Ongoing Trade Tensions
The latest developments in the ongoing U.S.-China trade negotiations have been at the forefront of investors’ minds. In a retaliatory move, China announced plans to increase duties on U.S. imports to 125%, up from an earlier proposal of 84%. This escalation is viewed as a direct response to the Trump administration increasing its tariffs on Chinese products to 145%.
The chaos in the markets this week reflects the broader anxieties regarding the trade war’s ramifications on the economy. Consumer sentiment dropped to its lowest level since 2022 in April, as many Americans expressed concerns over rising inflation driven by tariff-induced price increases.
Market Reactions and Economy Insights
The bond market has also felt the pressure of these developments; the benchmark 10-year Treasury yield soared to its highest level since February, closing at approximately 4.5%. Meanwhile, the dollar index slipped below the 100 mark, emphasizing the uncertain outlook for U.S. assets. In contrast, gold prices reached new heights, skyrocketing past $3,200 per ounce. Investors seeking a safe haven amidst market uncertainty turned to gold as confidence in other assets waned.
Ryan McIntyre, senior managing partner at an asset management firm, noted, "The new highs in gold are signaling a shift in appetite for U.S. assets. Confidence in the U.S. has clearly been shaken so people are looking to diversify."
Earnings Season Commences
As the first quarter earnings season kicks into gear, major Wall Street banks have started releasing their reports. Notable results came in from JPMorgan, Wells Fargo, and BlackRock. JPMorgan’s CEO Jamie Dimon remarked on the current "extreme turbulence" within the U.S. economy, mirroring the unsettled mood among investors.
In summary, while Friday’s gains provided a much-needed boost to the stock market, the upcoming weeks will likely hinge on further developments in the trade war and the reactions from both consumers and investors as they navigate through the heightened volatility. As we move forward, market participants will remain vigilant about new tariff announcements and their potential implication on the economy at large.
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