Stock Market Recap: Dow, S&P 500 Celebrate Best Week Since 2023 Amid Tariff Turmoil
By Brett LoGiurato and Ines Ferré, Updated April 11, 2025
In a week characterized by volatility and uncertainty, U.S. stock markets managed to close higher on Friday, marking their best week since 2023. The S&P 500 rose 1.8%, while the Dow Jones Industrial Average increased by about 600 points, or 1.5%, in a stark contrast to the tumultuous trading that defined much of the week. The tech-heavy Nasdaq Composite also performed strongly, climbing 2.1% on the day and securing a remarkable 7% gain for the week, marking its best performance since 2022. Tariff-Driven Volatility
The week began with President Trump’s new tariff policy sending ripples through the markets. A sudden announcement on Wednesday declared a pause on tariffs affecting about 75 countries, while simultaneously escalating duties on Chinese imports. These swift changes led to historic gains for major indices on that day. However, the optimism was short-lived as the market experienced sharp declines on Thursday, resulting in a rollercoaster week for investors.
China responded to the U.S. tariffs by announcing it would hike duties on imports of American goods to an astonishing 125%, up from the previously planned 84%. This retaliatory measure, effective Saturday, reflects the heightened tensions in the ongoing trade war and suggests China’s refusal to engage in further retaliatory hikes as indicated by their commerce ministry.
Market Reactions and Economic Indicators
The turbulence this week saw significant movement within the financial sector. The benchmark 10-year Treasury yield surged to its highest level since February, finishing the week around 4.5%. As the dollar index dipped below the 100 threshold, gold reached a new record price of $3,200 per ounce, emphasizing a shift in investor confidence towards safer assets.
Consumer sentiment also took a hit, falling to its lowest level since 2022 due to concerns over rising inflation driven by tariff implications. Analysts noted the dual effects of escalating tariffs and economic uncertainty leading to a flight from U.S. assets into safer alternatives such as gold.
Earnings Season Commences
The beginning of the first-quarter earnings season added another layer to the busy week, with banks such as JPMorgan, Wells Fargo, and BlackRock providing updates. JPMorgan’s CEO, Jamie Dimon, highlighted the “extreme turbulence” that the U.S. economy is currently experiencing, underscoring the critical intersection of financial performance and geopolitical developments in shaping market sentiment.
Sectors in Focus
Tech, industrials, and financials were among the biggest winners this week. Notably, AI chipmaker Nvidia led a group of stocks referred to as the "Magnificent Seven," bolstered by tech sector gains. Investors remain attentive to the fluctuations in stock prices across these industries as they navigate the complex interplay of tariffs, investor confidence, and economic stability.
Conclusion
As the week closes, the resilience of U.S. stock markets amid chaotic tariff-related developments illustrates the complexities facing investors. While indices recorded their best performances in over a year, the undercurrents of trade tensions, consumer sentiment, and economic indicators continue to paint a complex picture for the future. Moving forward, analysts will keep a close watch on how these dynamics evolve and impact market conditions in the weeks to come.
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