Full Market Coverage HereMajor Indexes Bounce Back After Chaotic Trading
The U.S. stock market is staging a significant recovery today, Tuesday, April 8, 2025, following a period of extreme volatility. As of midday, the Dow Jones Industrial Average has surged approximately 1,400 points, or 3.7%, while the S&P 500 has climbed 3.9% and the tech-heavy Nasdaq Composite has jumped 4.3%.
This rebound comes after three days of steep losses that saw the S&P 500 briefly enter bear market territory yesterday, down more than 20% from its record high. Monday’s session was particularly chaotic, with the Dow Jones Industrial Average swinging 2,595 points between its daily high and low before ultimately closing 349 points lower.
Trading volume has been exceptionally high, with approximately 29 billion shares changing hands on Monday, marking the highest volume day in at least 18 years according to market data.
Trade Tensions Continue to Drive Market Volatility
The market turbulence stems from President Trump’s recent announcement of sweeping tariffs on imports from most countries. Tensions escalated further when China vowed to “fight to the end” after Trump threatened an additional 50% tariff on Chinese imports if the country follows through with its planned 34% retaliatory duties.
Despite the lack of fundamental changes in the trade situation overnight, investors appear to be taking a more optimistic stance today, with some market analysts suggesting that negotiations between the U.S. and key trading partners could potentially lead to compromises before the tariffs take full effect.
Tech Stocks Lead the Recovery
The technology sector is leading today’s market rebound, with the so-called “Magnificent Seven” stocks all posting significant gains:
– Nvidia (NVDA): Up 7% after losing over $1 trillion in market cap since January, with its valuation dropping from $3.7 trillion to approximately $2.4 trillion
– Tesla (TSLA): Surging more than 6%, though still trading around 50% below its all-time high set in December
– Microsoft (MSFT): Rising 1.4%, but remains below its 50-day and 200-day moving averages
– Apple (AAPL): Up 0.1%, still trading below its 200-day line
– Alphabet (GOOGL), Amazon (AMZN), and Meta Platforms (META): All advancing more than 3%
Other notable tech gainers include Broadcom (AVGO), up 8%, and Palantir (PLTR), which has surged more than 9%.
Upcoming Earnings Releases
Several companies are scheduled to report earnings today, which could further influence market sentiment:
– Tilray Brands (TLRY): The cannabis company reported before the opening bell
– WD-40 Company (WDFC): Expected to report Q2 2025 results with analyst consensus at $1.27 EPS, representing an 11.40% increase year-over-year
– RPM International (RPM): Analysts expect earnings of $0.52 per share, unchanged from the same quarter last year
– Cal-Maine Foods (CALM): Set to report after the closing bell, with options pricing suggesting a potential move of approximately 11.45%
– Aehr Test Systems (AEHR): Will report Q3 2025 results after market close, with options indicating a possible 24.93% move in either direction
Economic Data and Fed Commentary
This morning saw the release of the NFIB Small Business Optimism Index, providing insight into the sentiment among small business owners across the country.
Investors will also be paying close attention to comments from San Francisco Federal Reserve President Mary Daly, who is scheduled to speak later today.
Looking ahead, key economic releases later this week include:
– Wednesday: Wholesale inventories data and minutes from the Fed’s March FOMC meeting
– Thursday: Consumer Price Index (CPI), which will be closely watched for inflation signals
– Friday: Producer Price Index (PPI) and preliminary consumer sentiment data
Market Outlook
Despite today’s strong rebound, market participants remain cautious about the potential long-term economic impact of the tariff policies. The yield on the 10-year Treasury note has risen to 4.24% today, up from 4.16% at yesterday’s close, but still well below last week’s levels—reflecting ongoing concerns about economic growth.
Analysts note that some of the best days in market history have occurred during periods of extreme volatility. The current bounce may represent a technical rebound rather than a fundamental shift in market sentiment, as trade tensions continue to loom large over the global economic outlook.
As the deadline for additional tariffs approaches, investors will be closely monitoring developments in trade negotiations and corporate earnings reports for signs of how businesses are adapting to the changing economic landscape.