Financial Market Update – Week of 04/14/2025
By Marc Aarons
Hope you are doing well. Last week brought volatile major U.S. stock indexes finishing higher for the week and some further improvement in consumer inflation, making this a good time to offer an overview of key developments. Read on for a bite-sized summary of what you should know.
Stock Index Performance
- The S&P 500 added 5.70%.
- The Dow Jones Industrial Average rose by 4.95%.
- The Nasdaq 100 increased by 7.43%.
Up & Down Volatility
- It was a wild ride on Wall Street last week, with major stock indexes clawing back at recent losses on the heels of some mid-week tariff relief. Major stock indexes posted some record breakers to the upside last week, including the Dow Jones and the S&P 500 having their best weeks since 2023.
- Market volatility was extreme, spiking to start the week and cooling down towards the end of the week in what will be remembered as one of the most volatile weeks ever.
Inflation Improvement
- March Consumer Price Index (CPI) reported an annual inflation rate of 2.4%, a decline of 0.1% from the previous month and down from 2.8% in February, marking a six-month low. This data was better than the Dow Jones estimates, which predicted an inflation rate of 2.6%.
- Meanwhile, Core CPI, which excludes food and energy prices, reached a four-year low in March. This development is encouraging news, especially considering the ongoing concerns about inflation due to tariffs.
Gold, Bond Volatility & Earnings
- Gold bugs are pleased with the ongoing rally, as the spot price of the yellow metal continued to rise last week, eclipsing $3,200 per troy ounce, driven by trade uncertainty and other factors.
- While gold traded higher last week, government bond prices sank sharply, with government bond interest rates rising in a volatile fashion.
- Let’s also not forget earnings — overshadowed by tariffs, yes, but a fundamental driver of equity markets indeed. Earnings season began last Friday, and the S&P 500 is expected to report Q1 earnings growth of 7.3%, with some analysts seeing the S&P 500 likely reporting earnings growth above 10% for Q1. If Q1 earnings growth exceeds 7.3%, it would mark the seventh consecutive quarter of (year-over-year) earnings growth for the large-cap index. Food for thought during these volatile times.
The Week Ahead
- Q1 earnings reports will be rolling in this week in earnest but will likely be overshadowed by tariff and trade news flow — and movement in the bond market, as last week was quite a volatile one for bonds.
- For economic data, this week is quieter than last week’s CPI, but we do get retail sales data on Wednesday and Federal Reserve Chair Jerome Powell speaking at the Economic Club of Chicago.
That’s it for this week’s update! If you’d like to discuss any of these topics further or have any other questions or needs as the week unfolds, don’t hesitate to reach out. I am always here as a resource for you.
Please don’t hesitate to reach out with any questions or concerns.
Marc Aarons may be reached at 714-887-8000 or Email Marc
This communication is from Money Managers, Inc.; a Securities and Exchange Commission registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities, and past performance is not indicative of future results. Investments involve risk and are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed here
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