Latest Market Movements TodayMarket Indexes Dip as Trade Tensions Escalate
As of midday on Friday, April 11, 2025, major U.S. stock indexes are trading lower amid escalating trade tensions between the United States and China. The Dow Jones Industrial Average is down 0.31% at 39,471.78, the S&P 500 has lost 0.25% to 5,254.70, and the Nasdaq Composite has declined 0.24% to 16,348.58.
The market’s decline comes after China announced it would increase tariffs on U.S. imports to 125%, up from 84%, in retaliation to President Trump’s decision yesterday to raise tariffs on Chinese goods to an effective rate of 145%.
Banking Sector Kicks Off Earnings Season
JPMorgan Chase (JPM) is leading the banking sector today after reporting better-than-expected first-quarter results. The bank’s shares gained 2.1% after beating profit estimates, with earnings rising 9% compared to the same period last year.
However, CEO Jamie Dimon struck a cautious tone, warning that “the economy is facing considerable turbulence (including geopolitics), with the potential positives of tax reform and deregulation and the potential negatives of tariffs and ‘trade wars,’ ongoing sticky inflation, high fiscal deficits and still rather high asset prices and volatility.”
Meanwhile, Wells Fargo (WFC) and Morgan Stanley (MS) shares slipped after reporting their quarterly results. Bank executives across the board warned that sweeping tariffs could fuel risks and weigh on economic growth.
Tech Stocks Show Mixed Performance
The technology sector is showing mixed performance today. Nvidia (NVDA) is up 1.7%, rebounding after recent losses that have kept it trading below its 50-day and 200-day moving averages.
Meta Platforms (META) is down 1.8% in midday trading.
Tesla has been particularly volatile, having raced more than 6% higher earlier this week but still trading around 50% below its all-time high set in December.
Economic Data Raises Concerns
Adding to market worries, the University of Michigan’s Consumer Sentiment Index dropped sharply to 50.8 in April from a final reading of 57.0 in March. This was significantly below economists’ expectations of 54.5.
More concerning, year-ahead inflation expectations spiked to 6.7% from 5%, marking the highest level since 1981.
Safe-Haven Assets Rally
As trade tensions escalate, investors are seeking refuge in traditional safe-haven assets. Gold has jumped to a record high, lifting gold miners like Newmont (NEM) and Barrick Gold (ABX), which are both up more than 6%.
Safe-haven currencies such as the Japanese yen and Swiss franc have also strengthened against the dollar, with the U.S. Dollar Index down 1.1%.
Upcoming Market Events
Looking ahead, investors should keep an eye on several key economic events scheduled for next week:
– The FOMC Meeting Minutes will be released on Wednesday, April 16, providing insights into the Federal Reserve’s latest thinking on monetary policy.
– New York Fed President John Williams is scheduled to speak on Friday, April 11, which could offer further clues about the Fed’s stance on interest rates amid rising inflation concerns.
– The Producer Price Index (PPI) data for March is also due today, with economists expecting a flat reading after a 0.0% change in the previous month.
Market Outlook
The CBOE Volatility Index (VIX), often referred to as Wall Street’s fear gauge, is up 4.62 points to 45.34, indicating heightened investor anxiety.
As earnings season continues next week with reports from Bank of America (BAC), Citigroup (C), and other major companies, market participants will be closely watching for signs of how tariffs and trade tensions are affecting corporate America’s bottom line and outlook.
The combination of escalating trade tensions, mixed corporate earnings, and concerning economic data suggests that market volatility may continue in the near term, despite the strong weekly performance of major indexes.