There were some bright spots for markets this week but not without their share of volatility. Are there more storms brewing or will there be some daylight soon? `
Monday
S&P 500 0.23% | NASDAQ 0.10%
Markets staged an initial rally from the tumultuous end to last week but fell flat through the close. Reports of a more lenient tariff policy were refuted by the Trump Administration leading to downward pressure. Tech stocks moved higher on a rebound trade.
Tuesday
S&P 500 1.57% | NASDAQ 2.15%
Markets came under stress on the day as the S&P500 swung from positive territory into the negative by almost 6% on the day. Volatility skyrocketed as the rebound trade lost steam after additional tariffs were announced on China.
Wednesday
S&P 500 9.52% | NASDAQ 12.16%
Following a turbulent day, markets surged in a one-day turnaround at levels not seen since 2008. The Trump administration announced a 90-day pause on new tariffs for all countries except China.
Thursday
S&P 500 3.46% | NASDAQ 4.31%
The jubilation from yesterday’s historic single day run fizzled even as Core inflation data showed a cooling for March prices. China responded with tariffs of their own and the bond markets were jolted through the close.
Friday
S&P 500 1.81% | NASDAQ 2.06%
Weaknesses in consumer sentiment didn’t sway markets from finishing the week on a high note. Additional tariffs were imposed by China in a potential escalation internationally, but markets mustered enough trading momentum as bond yields skyrocketed.
Conclusion
S&P 500 5.70% | NASDAQ 7.29%
A positive week of trading doesn’t necessarily mean everything went smoothly. This week proved to have a significant amount of volatility although the end of the week gains wouldn’t show that. Tariffs, and a potential trade war, continue to be a concern regarding policy direction and production. There has been quite a bit of back-and-forth including delays in implementation and what countries will be subject to tariffs along with the actual duties on specific goods. Markets took comfort in the possibility of tariffs reprieves for most countries this week and the rebound was evidence of that. Consumer sentiment has grown sour on recent developments but the news of easing in inflation was a bright spot for the week. While investors hope that daylight will shine through soon, they’ll have to deal with a little bit of clouds for the time being.
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