Today’s Complete Market CoverageMarket Performance: Major Indexes Stabilize After Wild Swings
The major U.S. stock indexes inched higher on Friday, April 11, 2025, as traders cautiously navigated the final trading session of what has been one of the most volatile weeks in recent market history. The S&P 500 added 0.2%, the Dow Jones Industrial Average hovered near the flatline, while the tech-heavy Nasdaq Composite rose 0.4%.
This modest recovery comes after Thursday’s steep selloff when the Dow tumbled over 1,000 points (2.5%), the S&P 500 fell 3.46%, and the Nasdaq plunged 4.31%. Despite Friday’s gains, the major indexes remain well below their levels before President Trump’s “Liberation Day” tariff announcements on April 2.
Weekly Performance:
– Dow Jones: +3.3% for the week
– S&P 500: +3.8% for the week
– Nasdaq Composite: +5.1% for the week
The CBOE Volatility Index (VIX), Wall Street’s “fear gauge,” has retreated from its midweek spike above 50 but remains elevated near 44, reflecting continued uncertainty in the markets.
Tariff Tensions: U.S.-China Trade War Escalates
Market volatility has been primarily driven by the rapidly evolving trade situation. After Wednesday’s historic rally following Trump’s announcement of a 90-day pause on many “reciprocal” tariffs, markets tumbled Thursday when the White House clarified that goods from China would still face a staggering 145% tariff rate.
China retaliated on Friday by raising its levies on U.S. products to 125% from 84%, with the Chinese finance ministry stating, “Even if the U.S. continues to impose higher tariffs, it will no longer make economic sense and will become a joke in the history of world economy.”
Meanwhile, the European Union has paused its retaliatory tariffs and announced its trade representative will fly to Washington on Sunday to “try and sign deals” during the 90-day reprieve period.
Banking Sector Leads Earnings Season Kickoff
The first-quarter earnings season officially began with major banks reporting results that offered insights into the economic impact of recent trade tensions:
– JPMorgan Chase (JPM) shares rose over 2% after reporting better-than-expected Q1 earnings of $5.07 per share on revenue of $46.01 billion, driven by record equities trading amid market volatility. CEO Jamie Dimon maintained a cautious tone, noting that “clients have become more cautious amid an increase in market volatility driven by geopolitical and trade-related tensions.”
– Wells Fargo (WFC) shares rose about 1% in early trading despite reporting a 6% year-over-year decline in net interest income to $11.50 billion. CEO Charlie Scharf highlighted economic uncertainty, stating, “We support the administration’s willingness to look at barriers to fair trade for the United States, though there are certainly risks associated with such significant actions.”
– Morgan Stanley (MS) gained more than 1% after reporting Q1 net revenue of $17.7 billion, exceeding analyst expectations of $16.56 billion.
Tech Sector: Mixed Performance Among Market Leaders
The “Magnificent Seven” tech stocks showed mixed performance on Friday, with most posting modest gains that helped support the broader market:
– Nvidia (NVDA) and Alphabet (GOOGL) led the group with gains exceeding 2%
– Apple (AAPL) and Microsoft (MSFT) each rose more than 1%
– Amazon (AMZN) edged up 0.24%
However, U.S. chip manufacturers faced significant pressure after the China Semiconductor Association announced that chip tariffs will be based on where they are manufactured rather than shipped from. Texas Instruments (TXN) plunged more than 9%, while Microchip Technology (MCHP) and Intel (INTC) dropped more than 7%.
Upcoming Market Events
Investors should keep an eye on these key events in the coming weeks:
1. European Central Bank Meeting (April 17): Markets are pricing in a 95% chance of a 25 basis point rate cut.
2. Tech Earnings: Major tech companies reporting in the next two weeks include:
– Netflix (NFLX): April 17
– Tesla (TSLA): April 22
– Alphabet (GOOGL): April 25
– Microsoft (MSFT), Amazon (AMZN), and Meta Platforms (META): April 30
3. Economic Data: Upcoming releases will be closely watched for signs of inflation driven by tariffs and potential economic slowdown.
Market Outlook: Uncertainty Prevails
Despite Friday’s modest gains, market sentiment remains cautious as investors assess the economic impact of escalating trade tensions. JPMorgan economists have reduced their estimate of a U.S. and global recession this year to 50%, down from 60% earlier this month.
Minneapolis Fed President Kashkari made hawkish comments today, reiterating that “the potential inflationary impact of tariffs makes the Fed less likely to lower interest rates, even in the face of a weakening economy.”
As earnings season accelerates in the coming weeks, with over 55% of S&P 500 companies reporting between April 21 and May 2, investors will be closely monitoring corporate guidance for insights into how businesses are navigating the uncertain trade environment.
The dollar index weakened 1% on Friday, putting it on track to end the week down by 3%, while safe-haven assets like gold reached new all-time highs, reflecting ongoing concerns about economic stability.
As we move forward, market participants will be watching closely for any developments in trade negotiations and signs of economic impact from the tariff policies that have dominated market sentiment throughout this turbulent week.